Benefit uprating 2016/2017

Have updated our rates poster for next year already .. see attached!!

Image Attachments

Click thumbnail to see full-size image

Have I missed a memo? I didn’t spot the policy change between the summer budget (https://www.gov.uk/government/publications/summer-budget-2015/summer-budget-2015#rewarding-work-and-backing-aspiration) and the publication of these proposed rates for 2016-17?
In the budget it said:
Benefits uprating – Most working-age benefits will be frozen for 4 years from April 2016. This will apply to Jobseekers’ Allowance; Employment and Support Allowance; Income Support; Child Benefit; applicable amounts for Housing Benefit; and Local Housing Allowance rates, with provision for high rent areas. This excludes Maternity Allowance; Statutory Sick Pay; Statutory Maternity Pay; Statutory Paternity Pay; Statutory Shared Parental Pay; and Statutory Adoption Pay; disability, carers and pensioners’ premia in the frozen benefits; the Employment and Support Allowance Support Group component; and other disability, carer and pensioner benefits, which will continue to be uprated in relation to prices or earnings as applicable. (37)

These new rates show AA, DLA, PIP, ESA components etc at the same rate for 2016 as for 2015…

As Shawn’s poster shows!

D’Oh! Just realised that CPI has been zero for most of 2015 so only the “triple locked” benefits will increase.
http://www.ons.gov.uk/ons/rel/cpi/consumer-price-indices/september-2015/stb-cpi-september-2015.html

That’s because the CPI was 0 per cent in September which is the one they use - so even the benefits that weren’t frozen in effect are!

Also, it appears the cap hasn’t changed?

Just checking, is this correct:
The CA earnings limit remains at £110. So anyone doing 16 hours and qualifying for the new Living Wage will not remain eligible for CA from April, unless they can bring their net earnings down, e.g. by making pension contributions?

Jon, I’m sure you are correct. The thing is, the CA earnings limit used to be pegged to NMW, like the Permitted work higher earnings limit still is. The formula, since NMW came is, was traditionally to the nearest 50p above the current NMW. So, when NMW goes up to £7.20 in April 2016 (rather than the traditional October), 16hours = £115.20, hence Permitted work higher earnings limit goes up to £115.50.
But CA earnings limit as of April 2015 is set by Regs, not a formula. Hence the problems that will arise for carers who want to do 16 hours a week at NMW from April 2016.

Notes:
EARNINGS RULES Carers Allowance 110.00 110.00
Limit of earnings from councillor’s allowance 104.00 115.50
Permitted work earnings limit - higher 104.00 115.50
See https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/480317/proposed_benefit_and_pension_rates_2016_to_2017.pdf page 5

New NMW from April 2016 for workers aged 25 and above, initially set at £7.20 – a rise of 50p relative to the current National Minimum Wage (NMW) rate. See
https://www.gov.uk/government/publications/national-living-wage-nlw/national-living-wage-nlw

Here’s a draft of our 2016/2017 poster ..... let us know if you spot any gremlins ..

http://www.rightsnet.org.uk/pdfs/benefit_rates_poster_draft_2016_2017.pdf

Cheers -Shawn

We’re all going to have to re-do the Benefit Cap figure when the Welfare Reform and Work Bill finally goes through, I think? It reaches HoL Report Stage next week…

Deffo!

Hi -

Here’s a further draft of our 2016/2017 poster ... not sure the timetable for the benefit cap changes will be in the public domain before going to print, so have taken out the reference in footnote (d)

http://www.rightsnet.org.uk/pdfs/benefit_rates_poster_feb_draft_2016_2017.pdf

Cheers - Shawn

Here’s a final pdf:

http://www.rightsnet.org.uk/pdfs/rightsnet_benefit_rates_poster_2016_17.pdf

Ps - you can get a free copy by just sending us an sae .. see http://www.rightsnet.org.uk/resources/benefit-tax-credit-rates

Our posters have arrived back from the printers ... grab one whilst you can ... .

http://www.rightsnet.org.uk/resources