{"value":{"id":1167851,"memberId":4174,"member":null,"memberRole":"The Parliamentary Under Secretary of State, Department for Work and Pensions","uin":"HLWS74","dateMade":"2019-11-04T00:00:00","answeringBodyId":29,"answeringBodyName":"Department for Work and Pensions","title":"Welfare and Pensions Update","text":"<p>My Right Honourable Friend, The Secretary of State for Work and Pensions (Dr Thérèse Coffey MP) has made the following Written Statement.</p><p>I am announcing the proposed social security benefit and pension rates for 2020/21.</p><p>More than 10 million people in receipt of working-age benefits will see their payments increase at the rate of inflation next year.</p><p>2.5 million people on Universal Credit and claimants on legacy benefits will receive a 1.7% rise in April. This includes people receiving Jobseeker’s Allowance (JSA), Employment and Support Allowance (ESA), Income Support, Housing Benefit and Universal Credit.</p><p>The basic and new State Pensions will increase at the highest rate for eight years, by 3.9%, boosting the retirement incomes of 13 million people. Pensioners receiving the full new State Pension will get an extra £344 a year. The basic State Pension will increase by £263 a year.</p><p>The Pension Credit standard minimum guarantee for a couple will be £265.20 a week, the basic State Pension will be £134.25 per week, the full rate of the new State Pension will be £175.20 per week, and the Universal Credit standard allowance couple one or both over 25 will be £507.37 a month.</p><p> </p><p>The annual up-rating of benefits will take place for state pensions and most other benefits in the first full week of the tax year. In 2020, this will be the week beginning 6 April.</p><p> </p><p>A corresponding provision will be made in Northern Ireland and the Scottish Government will lay its own statutory instrument in respect of increases to Carer’s Allowance in Scotland.</p><p> </p><p>The annual up-rating process takes into account a variety of measures:</p><ul><li>The basic and new State Pensions will be increased by the Government’s ‘triple lock’ commitment, meaning that they will be up-rated in line with the highest of prices (CPI), earnings or 2.5%. Consequently, they will be up-rated by 3.9% (the May-July Average Weekly Earnings figure).</li><li>The Pension Credit Minimum Guarantee will also be increased by earnings in line with legislation. The Pension Credit Savings Credit maximum amount will be increased in line with CPI (1.7%).</li><li>Benefits linked to the additional costs of disability, and for carers, are increased by the annual rise in prices (1.7%). A number of other elements – including Non-Dependent Deductions – will also be up-rated in line with prices.</li><li>Working age benefits will be increased by CPI (1.7%) from April 2020. Those linked to child tax and working tax credits will be up-rated in line with those benefits.</li><li>Universal Credit Work Allowances will be increased in line with CPI (1.7%) from April 2020.</li></ul><p>The full list of proposed benefit and pension rates will be placed in the Libraries of the House in due course.</p><p> </p><p>This will increase expenditure on social security benefit and pension rates by £5 billion. This includes £3.9 billion more to be spent on pensioner benefits. From April 2020 the yearly basic State Pension will be worth over £1900 more in cash terms than in 2010. £1 billion more will also be spent on working-age benefits, ensuring that we continue to support the most vulnerable in society.</p>","house":"Lords","noticeNumber":0,"hasAttachments":false,"hasLinkedStatements":true,"linkedStatements":[{"linkedStatementId":1167845,"linkType":"JointStatement","linkDate":"2019-11-04T00:00:00"}],"attachments":[]},"links":[{"rel":"self","href":"/Statements/1167851","method":"GET"}]}