Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, if he will estimate the effect of the forecasts in the Office for Budget Responsibility's Economic and Fiscal Outlook, November 2016, on his Department's estimates of the financial effect on recipients of working age benefits of the freeze on those benefits.
The Welfare Reform and Work Act 2016 has frozen the majority of working-age benefits for four tax years, from 2016-17 to 2019-20. These benefit rates will therefore remain the same.
These reforms to working-age benefits are part of the Government’s commitment to incentivise work for those who can in a high-wage, low-tax economy. This includes increasing the National Living Wage to £9 an hour by 2020, cutting income tax for over 30 million people and the roll-out of UC. These reforms are working, with employment at historic high levels.
We are also committed to supporting those who cannot work, and those with additional needs. Our triple lock guarantee has meant that the basic State Pension is now over £1,100 a year higher than in 2010. Benefits for the additional costs of disability, and for carers, are exempt from the benefit freeze and will continue to be up-rated in line with the rise in prices.