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Benefit uprating 2021-22
Further to the Rightsnet news story Social Security (Up-rating of Benefits) Act 2020 gains Royal Assent I’ve come across a written statement by SoS Thérèse Coffey which expands on what we can expect:
State pensions will be increased by 2.5%, in line with the Government’s manifesto commitment. The full rate of the new State Pension will now be worth £179.60 per week. The Standard Minimum Guarantee in Pension Credit will also increase by the same cash amount as the basic State Pension, rising by 1.9%.
All other benefits will be increased in line with CPI - which was 0.5% in the relevant reference period. This includes working-age benefits, benefits to help with additional needs arising from disability, carers’ benefits, pensioner premiums in income-related benefits, Statutory Payments, and Additional State Pension.
Separate to the uprating review, I can confirm that the increase to Local Housing Allowance rates in April this year will be maintained in cash terms in 2021/22.
The statutory annual review is separate from the temporary £20 per week uplift to Universal Credit and Working Tax Credit, which was announced by the Chancellor as a temporary measure in March 2020, and enacted for one year under different legislation to support those facing the most financial disruption as a result of the public health emergency. As the Government has done throughout this crisis, it will continue to assess how best to support low-income families, which is why we will look at the economic and health context in the new year.
So nothing on whether the £20 uplift will continue until early next year, which always makes updating handbooks and factsheets really good fun…..
Also note that the “maintained” for LHA rates actually means cut in real terms.
The Spending Review document released today (para 2.8) explicitly describes the £20 uplift as being a temporary measure in place until April 2021:
Next year’s benefit rates are out:
https://www.gov.uk/government/publications/benefit-and-pension-rates-2021-to-2022