Article discussion the implications of the June 2010 Budget Coalition Government announcement that the Consumer Prices Index (CPI) would be used to uprate benefits, and state pensions, including public service pensions.
Section 1 of the Pensions Act 2011 will accelerate the increase in the State Pension age to 66. The amended the Bill in its final stages to cap the maximum increase in women's State Pension age at 18 months relative to the previously legislated timetable. This note also looks at this and other Government amendments to the Bill in its final stages. It complements and updates Library Research Paper 11/68 Pensions Bill: Commitee Stage Report.
This is a report on the Public Bill Committee Stage of the Pensions Bill. It is designed to complement Research Paper Pensions Bill (RP 11/52), which covers in more detail the background to the Bill and the debates in the House of Lords.
The Commons Report Stage and Third Reading of the Welfare Reform Bill took place on 13 and 15 June. Amendments relating to the Universal Credit, housing support, the Social Fund and the Personal Independence Payment were debated, but other groups of amendments –including those on Employment and Support Allowance changes and the benefit cap – were not discussed as proceedings on each day reached the deadlines specified in the programme motion before they could be considered.
The Welfare Reform Bill provides for the introduction of a 'Universal Credit' to replace a range of existing means-tested benefits and tax credits for people of working age, starting from 2013. The Bill follows the November 2010 White Paper, Universal Credit: welfare that works, which set out the Government’s proposals for reforming welfare to improve work incentives, simplify the benefits system and tackle administrative complexity.
This Commons Library briefing paper has been archived as it no longer offers up-to-date information. However, we have published other papers which may be of interest.
Cold Weather Payments are made to certain claimants of means-tested benefits during periods of very cold weather. To trigger the £25 payments, the average temperature in an area must be recorded as, or forecast to be, 0°C or below for seven consecutive days.
From April 2011 rates of many benefits and Tax Credits will increase; this will mainly be in line with the 3.1% annual increase in the CPI to September 2010. Exceptionally, this year the basic state retirement pension will be increased by the 4.6%.
The Government is committed to a "triple lock" for uprating the basic state pension, which means in future it will be increased by the highest of the increase in earnings, prices (as reflected in the CPI increase) or 2.5%. This year, to ensure the basic state pension is in line with the previous uprating rules, the increase in the RPI is being used. There is a requirement for Pension Credit to be increased in line with earnings. However, to ensure the least well-off pensioners benefit from the triple guarantee, the standard minimum income guarantee in Pension Credit will increase in April 2011 by the cash rise in a full basic State Pension.
This note sets out the basis for the April 2011 uprating. It focuses on the Retirement Pension and Pension Credit but also contains a summary of the main benefit and tax credit rates before and after the uprating.
Child Benefit is frozen until April 2014.
Clause 1 of this Bill would cap compensation payable under the Civil Service Compensation Scheme at a maximum of 12 months’ pay for compulsory redundancy and 15 months’ pay for voluntary exits. Clause 2 provides for clause 1 to expire after 12 months unless repealed, extended or revived using order-making powers. The Conservative-Liberal Democrat Coalition Government invited the civil service unions to negotiate a “sustainable and practical and practical long-term successor scheme”. On 7 October, the Government announced that it had concluded its negotiations with five of the six unions on a new scheme.
This Paper has been written for the Second Reading debate in the House of Commons. Clause 1 of the Bill would cap compensation payable under the Civil Service Compensation Scheme at a maximum of 12 months’ pay for compulsory redundancy and 15 months’ for voluntary exits. Clause 2 provides for clause 1 to expire after 12 months, unless repealed, extended or revived using order-making powers. The Conservative-Liberal Democrat Coalition Government has invited the civil service unions to negotiate a “sustainable and practical long term successor scheme”.