Press release

Welfare Up-Rating Bill Introduced

Ministers laid the Welfare Benefits Up-Rating Bill before Parliament today.

This was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government

Ministers laid the Welfare Benefits Up-Rating Bill before Parliament today, which will enable a time limited 1% increase to many working age benefits and tax credits for 2014-15 and 2015-16.

As announced in the Autumn Statement, the Government wants to ensure that the welfare system remains sustainable over the longer term and the budget is managed appropriately whilst continuing to provide support for those who cannot expect to move into work.

Benefits for carers and disability benefits such as Attendance Allowance, the disability elements of tax credits, Disability Living Allowance and the Support Component of Employment and Support Allowance will continue to be up-rated in line with price inflation, whilst the Basic State Pension is protected by the triple lock guarantee.

Minister for Pensions Steve Webb said:

In difficult economic times we’ve protected the incomes of pensioners and disabled people who have little means to increase their income. We have also committed to helping people who rely on working age benefits and tax credits and will increase that support by 1%. By raising the Personal Allowance threshold we’ve lifted over 2 million low earners out of tax altogether.

The changes in the Bill will generate total savings of £1.9bn by 2015-16. The Bill will seek to introduce new provisions that will be time limited.

Notes to Editors:

  • The Bill can be found here:
  • Second reading in the Commons will take place in January 2013.
  • The Bill relates to 2014-15 and 15-16 only. A decision for 2013-14 was announced in the Autumn Statement and for Department for Work and Pensions benefits, set out in the Oral Uprating Statement
  • The savings referred to above do not include the impacts of policy decisions for 2013/14.  

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Published 20 December 2012