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The Secretary of State for Work and Pensions is required to review the level of benefits each year. This briefing sets out the main benefit and tax credit rates that have been announced for the 2022/23 financial year.

Inflation-linked benefits and tax credits will rise by 3.1% from April 2022, in line with the Consumer Prices Index (CPI) rate of inflation in September 2021.

Universal Credit and Working Tax Credit

The Universal Credit standard allowances and the Working Tax Credit basic element will be set in line with the usual annual uprating review and do not retain the temporary £20 per week uplift that was introduced covering 18 months from April 2021 as part of a package of welfare measures introduced during the coronavirus outbreak.

Pension rates in 2022/23

The Basic and New State Pensions will also be uprated in line with CPI inflation in 2022/23, following a one-year suspension of the  ‘triple lock’. This was a Government commitment to increase pensions by whatever was highest: earnings, prices or 2.5%.

Because of high earnings growth from mid-2020 onwards, there would be an increase in state pensions spending of around £4 to £5 billion in 2022/23, if an earnings uprate was applied, as opposed to the higher of 2.5% or expected price inflation.

The Social Security (Uprating of Benefits) Bill 2021-22 suspended the earnings element of the triple lock for the 2022/23 financial year and state pensions will be increased by CPI inflation of 3.1%. The full rates for 2022/23 will be:

  • £185.15 per week for the New State Pension (for those reaching State Pension age on or after 6 April 2016) – up from £179.60 in 2021/22.
  • £141.85 per week for the Basic State Pension (the core amount in the old State Pension system) – up from £137.60 in 2021/22.

The Pension Credit standard minimum guarantee (delivered by the Guarantee Credit) will also increase by 3.1% in line with CPI inflation.

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