Benefit rates for 2022/23 confirmed

Published By GOV.UK [English], Thu, Nov 25, 2021 4:37 AM

The Secretary of State for Work and Pension’s annual review, announced today (Thursday 25 November 2021), confirms they will be increased in line with the Consumer Price Index (CPI) for the relevant reference period (the year to September 2021).

This means the basic State Pension will increase to £141.85 per week and the full rate of new State Pension will increase to £185.15.

The decision was enabled after The Social Security (Up-rating of Benefits) Act 2021 received Royal Assent last week.

This legislation temporarily suspended the earnings element of the Triple Lock for one year only, following distortions to the earnings statistics.

In taking this decision, the government carefully considered the fairest approach for both pensioners and younger taxpayers, many of whom have been hardest hit by the financial impacts of the pandemic.

In addition, last year, we delivered primary legislation to increase State Pensions by 2.5%, when earnings fell and price inflation increased by half a percentage point. If we hadn’t taken this action, State Pensions would have been frozen.

This is a one-year response to exceptional circumstances and the government will return the earnings element of the Triple Lock next year.

All other benefits will also be increased in line with CPI of 3.1%. 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.

More information

September CPI has consistently been the reference month for pension uprating since the Triple Lock came into operation. Changes to inflation after September will feed into next year’s pension uprating considerations.

The Secretary of State’s Parliamentary announcement is available to read on the UK Parliament website.

The new rates will apply in the tax year 2022/23 and come into effect on 11 April 2022.

The increase to State Pensions applies across Scotland, Wales and England. All of these pensions and benefits are transferred to Northern Ireland, and corresponding provisions will be made there.

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