Documents to download

Since April 2013, there have been two main factors used to increase benefits. Benefits aimed at disabled people and pensioners will increase in line with CPI inflation (1.2%). Most benefits and tax credits for working age people are being increased by 1%.

The Government has introduced a ‘triple guarantee’ for uprating the basic state pension, meaning that it increases by the highest of the increase in earnings, prices (as measured by the CPI) or 2.5%. For the purposes of the 2015-16 uprating, 2.5% was the highest of these three benchmarks.

The Pension Credit standard minimum guarantee is required to be increased at least in line with earnings; the relevant earnings benchmark rose by 0.6%. However, for the fifth year in a row the Government has decided on an above-earnings increase so that recipients of Pension Credit Guarantee Credit get the same cash increase as those on the Basic State Pension. This is again being paid for by cutting the value of Pension Credit Savings Credit.

The main elements of Working Tax Credit have been uprated by 1% in 2015-16. Child Benefit will also be increased by 1% from April 2015.

Documents to download

Related posts

  • Saving for later life

    A debate is scheduled to be held on 7 February 2023 at 9:30am in Westminster Hall on Saving for Later Life. The debate will be opened by Sir Stephen Timms MP. The subject for this debate was determined by the Backbench Business Committee.

    Saving for later life
  • Guaranteed Minimum Pension (GMP) increases

    Between 1978 and 1997, contracted-out defined benefit pension schemes were required to provide a Guaranteed Minimum Pension (GMP). This briefing looks at the arrangements for increasing GMP rights for people reaching State Pension age before and after 6 April 2016 and for members of public service pension schemes.

    Guaranteed Minimum Pension (GMP) increases