Social Security Benefits

(asked on 1st September 2014) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what estimate he has made of the difference between changes in (a) carers' benefits, (b) disability benefits and (c) older people's benefits and the rate of inflation in each of the last three years.


Answered by
 Portrait
Steve Webb
This question was answered on 5th September 2014

Carers’ and disability benefits, and the additional State pension, must by statute be up-rated in line with prices. So the increase in those benefits over the last three years has reflected the increase in the Consumer Price Index.

The basic State pension has been increased with the triple lock (by the highest of average earnings, CPI or 2.5%), and the Standard Minimum Guarantee in Pension Credit has been up-rated in line with the cash increase in the basic State pension. In each of the last three years, this means that the Standard Minimum Guarantee has increased by more than the minimum requirement of the increase in average earnings. The resulting over-indexation of the Standard Minimum Guarantee has been funded through an increase in the savings credit threshold and the associated reduction in the Savings Credit maximum.

The table indicates the percentage increases in CPI; basic State Pension; average earnings; and the Standard Minimum Guarantee in each of the past three years.

2012/13

2013/14

2014/15

CPI

5.2%

2.2%

2.7%

Basic State pension

5.2%

2.5%

2.7%

Average earnings

2.8%

1.6%

1.2%

Pension Credit Standard Minimum Guarantee

3.9%

1.9%

2.0%

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