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Annual uprating…or not???
This is another ‘am i missing something obvious’ question.
There has been no annual uprating of PIP, DLA, AA, or CA in this year’s ‘spot the difference’ new benefit rates.
The freeze to working age benefits was set out as follows in last year’s budget document:
“1.137 [...bla bla bla… ]the government will legislate to freeze working-age benefits, including tax credits and the Local Housing Allowances, for 4 years from 2016-17 to 2019-20. [...]
1.138 Statutory payments, including Maternity Allowance, Maternity Pay, Paternity Pay and Statutory Sick Pay will continue to be indexed by CPI. Disability benefits will also continue to be indexed by CPI, including Personal Independence Payment, Attendance Allowance, Disability Living Allowance and Employment and Support Allowance (Support Group).”
So on what basis were the benefits covered in para 1.138 NOT increased in line with the CPI?
Source: http://www.gov.uk/government/uploads/system/uploads/attachment_data/file/443232/50325_Summer_Budget_15_Web_Accessible.pdf
Because the CPI was negative at the September 2015 “snapshot” date. Not frozen, but uprated by zero %! We should count ourselves lucky they didn’t cut everything by 0.1%
The only plus point from my perspective is that I don’t have to spend the next 10 months trying to remember what the new benefit rates are without having to resort to looking them up (being a sad old cow of a certain age). It’s usually at the 10.5 month stage that I get it off by heart only to start the whole process again a couple of months later.
But I’d happily go back to normal.
Its a bit off topic….but this thread gives me an excuse to remind youse lot .....that in may areas rent inflation is 4-6% yet LHA levels remain frozen.
The fact is if your fictional basket of goodies…... does not contain a sum for shelter, and your shelter costs you a lot more, you have a problem.
Over 4 years this freeze is going to make virtually all properties unaffordable for people on benefits.
I believe that’s the deliberate intention. After all, benefit claimants don’t vote Tory.
Thanks all for comments, esp HB anorak. Obvious when I think about it. Funnily enough, non-dependant deductions for HB and CA do increase though…
Re Martin’s comment: I couldn’t agree more. I’m not clear how anyone on means-tested benefits can afford to live as it is now
[ Edited: 6 May 2016 at 11:34 am by Giles Elliott ]Yes, they uprated the non-dep deductions by the expected rise in rents paid by HB claimants over the year; and they uprated the non-dep earnings bands by the same wage inflation measure that was used for the pensioner “triple lock” uprating
So it is now slightly less likely that a non-dep on a given rate of pay will attract a higher deduction, but if they do the amount is slightly higher than it was before.