Accredited official statistics

Abstract of DWP benefit rate statistics 2024

Published 22 January 2025

The Abstract of Department for Work and Pensions (DWP) benefit rates statistics is an annual publication produced by the DWP. The purpose of the publication and data tables is to provide a reference source for people who are interested in:

• benefit up-rating

• the value of benefits compared to prices and earnings

The aim is to provide answers to questions like:

• how does the value of state benefits compare to prices?

• are state benefits worth more or less today than in previous years, in terms of average earnings?

1. Main stories

This report covers benefit up-rating up to April 2024:

• at April 2024, most DWP benefit rates were raised in line with Consumer Price Index (CPI) in the year to September 2023 which was 6.7%

• the Triple Lock was once again applied in 2024 for basic and new State Pensions and Pension Credit Standard Minimum Guarantee. These were uprated in line with Average Weekly Earnings (AWE) growth in the year to May-July 2023 which was 8.5%

• in the period leading up to the 2024 up-rating, the annual rate of CPI inflation slowed to 2.3%   (as of April 2024), down from 8.7% in April 2023. Monthly annual rates of CPI inflation can be found in the ONS Consumer Price Inflation Time Series

2. What you need to know

This section explains policy changes and highlights the factors involved in benefits up-rating from 1974 until 2024. Benefits have been uprated by a variety of methods during this period, including:

• forecasts

• indices of prices and earnings

• one-off payments

• targeting of particular components of a benefit

• revisions to the eligibility rules governing the benefit

• Consumer Price Index (CPI) – CPI is a measure of consumer price inflation produced to international standards and in line with European regulations. More information on CPI can be found at the ONS Consumer Price Indices Guide

• Retail Price Index (RPI) – RPI is a long-standing measure of UK inflation that has historically been used for a wide range of purposes such as the indexation of pensions and rents and index-linked gilts. More information on RPI can be found at the ONS Consumer Price Indices Guide

• Rossi Index – the Rossi Index is a variant of RPI that excludes housing costs. It was introduced in 1983 to uprate income-related benefits. In 2011, the CPI replaced the RPI and Rossi as the measure used for uprating, with the exception of the basic state pension, which continued to use RPI for 2011 only, before moving to CPI in 2012. Given the index is no longer used for the specific purpose for which it was designed, it was discontinued from 2017

• Average Weekly Earnings (AWE) – AWE is the lead monthly measure of average weekly earnings per employee. AWE for any given month is the ratio of estimated total pay for the whole economy, divided by the total number of employees. As a result, AWE is not a measure of rates of pay and can be affected by changes in the composition of an enterprise’s workforce. They do not, for example, adjust for changes in the proportion of the workforce who work full time or part time, or other compositional changes within the workforce. The estimates do not include earnings of self-employed people. The AWE figures used for benefit uprating in April, are the May to July seasonally adjusted total pay figures. It is this three month average which is shown in this release. Therefore, the reference month for upratings based on earnings is the previous July. More information on AWE can be found at the ONS Average weekly earnings in Great Britain Statistical bulletins

• Triple Lock – the Triple Lock was implemented from the financial year 2011 to 2012, and is a government commitment to uprate the basic and new State Pensions every year by the highest of earnings growth, inflation, or 2.5%

Related content

An explanation showing implications of the differences between the Consumer Prices Index and Retail Prices Index from the ONS.

An analysis published by ONS in 2018 on shortcomings of the Retail Prices Index as a measure of inflation.

The response to the joint consultation on reforming the methodology of the Retail Prices Index which sets out the latest thinking on suitability of the Retail Price Index.

3. Benefits up-rating

State Pensions and Pension Credit

Table 1: Basis for up-rating, with percentages, for State Pension from 2011 to 2024

Year	Up-rating percentage	Basis for up-rating
April 2011	4.6%	Price Inflation (RPI)
April 2012	5.2%	Price Inflation (CPI)
April 2013	2.5%	2.5% Minimum
April 2014	2.7%	Price Inflation (CPI)
April 2015	2.5%	2.5% Minimum
April 2016	2.9%	Earnings Growth
April 2017	2.5%	2.5% Minimum
April 2018	3.0%	Price Inflation (CPI)
April 2019	2.6%	Earnings Growth
April 2020	3.9%	Earnings Growth
April 2021	2.5%	2.5% Minimum
April 2022	3.1%	Price Inflation (CPI)*
April 2023	10.1%	Price Inflation (CPI)
April 2024	8.5%	Earnings Growth

Source: Abstract of DWP benefit rate statistics

Notes for table 1:

• up-rating of State Pension was based on the Triple Lock guarantee between April 2011 and April 2024

• for April 2021, to avoid freezing State Pension rates, the government introduced the Social Security (Up-rating of Benefits) Act 2020 to allow for increases in uprating the basic and new State Pensions (2.5%)

• for April 2022 the earnings element of the Triple Lock was suspended, and up-rating was based on the greater of Price Inflation (CPI) and 2.5%.  For more information see the section regarding Coronavirus (COVID-19) pandemic and other impacts

The new State Pension (nSP) was introduced on 6 April 2016 for people reaching State Pension age (SPa) from that date. People who had already reached SPa continued to be entitled to the basic State Pension and additional State Pension, where applicable. There are transitional arrangements and protected payments in place to ensure that the amount of State Pension an eligible individual receives is not less than under the previous system, based on their National Insurance record to 5 April 2016. Please see The new State Pension – how it’s calculated for guidance.

The nSP is subject to the same up-rating arrangements as its predecessor. Since the introduction of the Triple Lock in 2011 the nSP (excluding protected payments) also was uprated in line with the Triple Lock commitment (noting that the earnings element of the Triple Lock was suspended in 2022). Protected payments are uprated in line with CPI.
 
The government introduced the Social Security (Up-rating of Benefits) Act 2020 to enable the basic and new State Pensions, and the Standard Minimum Guarantee in Pension Credit, to be uprated in 2021/22. This legislation was required because the Social Security Administration Act 1992 (section 150A) prevents the Secretary of State from bringing forward an Up-rating Order if earnings growth is negative. The Social Security (Up-rating of Benefits) Act 2020 ensured when earnings were negative, that people claiming the State Pension saw an increase of 2.5%. For more information see section 5 for more information.

The Triple Lock was once again applied in 2024 for basic and new State Pensions. In April 2024, State Pension was uprated by 8.5% in line with the annual increase of Average Weekly Earnings. This is due to it being higher than the other components of the Triple Lock, given that annual CPI inflation at September 2023 was 6.7%.  

For people who reached SPa before 6 April 2016, Pension Credit has two elements:

• the Guarantee Credit, which provides a minimum level of income

• the Savings Credit, which aims to provide an additional amount for people aged 65 and over who have made some provision for their retirement

The Savings Credit element was removed for people reaching SPa from 6 April 2016 when nSP was introduced.

Legislation requires the Standard Minimum Guarantee (SMG) in Guarantee Credit to be uprated at least in line with earnings. Between 2016 and 2021, the SMG has risen at least in line with earnings. In April 2021, the SMG was raised by 1.9% to align the cash value of the uplift to basic State Pension. In April 2022 and April 2023, it was increased in line with CPI inflation (by 3.1% and 10.1%, respectively). In April 2024, it was increased in line with earnings (8.5%).

3.1 Other Benefits

Since April 2011, benefits to meet the additional costs of disability were increased in line with CPI price inflation, as were most discretionary benefits and tax credits for working age people.

Between 2013 and 2015, most discretionary benefits and tax credits for working age people were increased by 1% each year.

Under the Welfare Reform and Work Act 2016, most discretionary benefits and tax credits for working age people were frozen at the April 2015 rates for four years. When the Benefit Freeze ended in April 2020, the benefits were raised by 1.7%, in line with CPI price inflation. The benefits have risen in line with CPI price inflation every April since then; 0.5% in 2021, 3.1% in 2022, 10.1% in 2023 and 6.7% in 2024.

See the data tables (Table 5) accompanying this release for historical values of inflation and earning measures used for up-rating.

3.2 Coronavirus (COVID-19) pandemic and other impacts

In response to the outbreak of coronavirus (COVID-19) in Great Britain, the Social Security (Coronavirus) (Further Measures) Regulations 2020 introduced additional temporary changes to the Social Security Benefits Up-rating Order. Temporary uplifts to Universal Credit standard allowances were payable from April 2020.

The temporary increases were removed in October 2021. At this time the UC earnings taper was reduced from 63% to 55%. Please see Universal Credit work allowances.

Between October 2021 and April 2023, Universal Credit standard allowance was paid at the rates set by the Social Security Benefits Up-rating Order 2021.

The coronavirus (COVID-19) pandemic also affected the ONS’ ability to capture survey and expenditure data used in its indices. The ONS has described the impact of the pandemic on their inflation and earnings statistics in their Coronavirus (COVID-19) and Consumer Price Inflation weights and prices article. To learn about the impacts on the 2022 earnings surveys, please see the ONS Employee earnings in the UK: 2022.

For April 2022 the earnings element of the Triple Lock was suspended, and up-rating was based on the greater of Price Inflation (CPI) and 2.5%. 

4. The value of benefits compared to price inflation and earnings growth

Rates of the principal benefits for each up-rating can be found in the data tables accompanying this release.

The accompanying data tables show:

• the rate of the benefit at each up-rating date

• the percentage increase since the previous up-rating

• the percentage increase in prices between up-rating periods

• the value of the benefit at April 2024 prices at the date of up-rating

• over the period between up-ratings, the average value at April 2024 prices

• the benefit as a percentage of average earnings at the date of up-rating

For reasons of comparison and maintaining time series before CPI was created, where applicable, both the CPI and RPI are used to convert the values of each benefit to April 2024 prices in the enclosed tables.

How do the values of state benefits compare to price inflation?

In 2024, the annual rate of CPI inflation slowed to 2.3% as at April 2024, compared to 8.7% a year earlier. At April 2024 most DWP benefits were uprated in line with CPI.

Where benefits are uprated by CPI, the annual rate of CPI growth from the previous September is typically used and applied to benefit up-rating for the following April. The CPI figure used for up-rating was therefore 6.7%.

Basic State Pension rates adjusted for April 2024 CPI and RPI Prices, from 2009 to 2024

Source: Abstract of DWP benefit rate statistics

Notes for graph:

• the rate in the above graph represents the full rate for a single person

Since the introduction of the Triple Lock guarantee in April 2011, the value of the basic State Pension has either exceeded or kept pace with CPI inflation at the uprating period (the previous September).

The data tables published alongside this publication take the key state benefits at each benefit up-rating date and show the rate of benefit in payment for key claimant types. As prices generally rise each year, it is difficult to look at these benefit rates and sensibly compare them over time. Therefore, the tables use various measures of price inflation to convert all benefit rates to April 2024 prices. The benefit rates then become comparable across time in terms of the purchasing power of the benefit payment. Two price indices are used:

• the Consumer Prices Index (CPI)

• the Retail Prices Index (RPI)

Many benefits have been historically uprated in line with CPI, RPI, Rossi, and earnings indices since 1974. Hence, the real value of benefit payments had remained stable. Benefits such as State Pension and Pension Credit have seen some moderate growth in real value since 1974, due to up-rating policies linked to earnings in some years and policies to protect the income of those over State Pension age.

The level of price inflation measured by CPI is usually lower than RPI. Until 2011, most DWP benefits were uprated by RPI or Rossi, meaning their real values relative to CPI increased in this period. Since April 2011, CPI has been the government’s preferred measure of prices and has been used to uprate benefits.

As noted in Section 3.1, the Welfare Reform and Work Act 2016 held the rate of most working age benefits at 2015 to 2016 levels. The Benefit Freeze was lifted by the April 2020 Up-rating Order. Since then, the benefits in question have been uprated using CPI based price inflation.

The benefits that were impacted by the Benefit Freeze include:

• Jobseeker’s Allowance

• Employment and Support Allowance

• Income Support

• Housing Benefit for those below State Pension age

• Universal Credit

Carer’s and Disability elements within the benefits listed above were not included as part of the Benefit Freeze.

The Benefit Freeze also applied to Working Tax Credit, Child Tax Credit and Child Benefit, which are the responsibility of HM Revenue and Customs (HMRC) and HM Treasury.

Jobseeker’s Allowance rates adjusted for April 2024 CPI Prices, from 2006 to 2024

 

Source: Abstract of DWP benefit rate statistics

Notes for graph:

• the rate in the above graph represents the full rate for a single person aged 25 and over

In 2015, before the start of the Benefit Freeze, weekly Jobseeker’s Allowance payments would have represented the equivalent of £97.69 in April 2024 prices (based on CPI). This is worth an extra £6.99 when compared to April 2019, the last year of the Benefit Freeze, as payments were worth £90.70 on the same basis. In April 2024, the rate for Jobseeker’s Allowance was set at £90.50, which is 7.4% below the 2015 rate when adjusted for April 2024 CPI Prices.

How do state benefits today compare to average earnings?

Another way to analyse the value of state benefits across time is to compare the value of benefits to the average full-time wage. Average earnings are estimated each year using Employee earnings in the UK Statistical bulletins. This survey began in 2004, but average earnings statistics have been collected in a broadly comparable form since 1970.

The New Earnings Survey (Great Britain) (NES), which was conducted by the ONS each April between 1970 and 2004, gave a detailed picture of the pattern of earnings across the whole economy. Between 1970 and March 1983, the survey included full-time workers, aged 21 and over, whose earnings were unaffected by absence. From April 1983, the survey included full-time workers on adult rates, whose earnings were unaffected by absence. Employers were asked to provide information about the earnings of a 1% random sample of employees.

This survey was replaced in October 2004 by the Annual Survey of Hours and Earnings (ASHE). ASHE improved on the NES by extending the coverage of the survey sample, introducing weighting and publishing estimates of quality for all survey outputs.

The accompanying data tables show the rate of benefit as a percentage of average earnings in the same year.

As earnings have historically risen faster than prices, most benefits show a fall in value when compared to average earnings. The earlier Benefit Freeze has also suppressed the value of most working age benefits in relation to earnings growth.

Monthly Universal Credit standard allowance expressed as a ratio relative to median earnings, from 2013 to 2024

Source: Abstract of DWP benefit rate statistics

Notes for graph:

• the rate in the above graph represents the monthly standard allowance for a single person aged 25 or over
• please note temporary uplifts to Universal Credit standard allowances were payable between April 2020 and October 2021 as a response to the Coronavirus (COVID-19) pandemic

From 2014 to 2019, Universal Credit rates as a proportion of median earnings showed a downward trend.

In April 2024, the monthly rate of Universal Credit for a single person aged 25 and over represented 12.5% of median earnings.

Basic State Pension expressed as a ratio relative to median earnings, from 1987 to 2024

Source: Abstract of DWP benefit rate statistics

Note for graph:

• the rate in the above graph represents the full rate of basic State Pension for a single person

State Pension and Pension Credit have often been uprated differently. Please see the State Pension Up-rating Briefing Paper from House of Commons Library for a comprehensive summary of the differences over time.

Basic State Pension and new State Pension have each in recent years shown a relatively flat profile when compared to average earnings. As noted above, since April 2011, for basic State Pension and April 2017 for New State Pension the Triple Lock guarantee has ensured that payments increase by the highest of the growth in average earnings, price increases or 2.5%.

Between 1997 and 2024, the value of Pension Credit has risen against earnings. The Triple Lock was once again applied in 2024 for Pension Credit Standard Minimum Guarantee and was uprated in line with annual earnings growth of 8.5%.

It is important to note that the reference index for up-rating is Average Weekly Earnings (AWE) which is not the same as the data source for the earnings comparison used in this release (ASHE).

Finally, for further details on the ASHE estimates including the changes in methodology in estimating earnings and the collation of data during the coronavirus pandemic and afterwards, see the ONS statistical bulletins on employee earnings  in the UK.

How do the rates of benefits compare with one another?

The data tables show the rates of the key state benefits at each up-rating and the real values (in April 2024 prices, using RPI or CPI). These real values are given at the point of up-rating. This represents the real value of that benefit (in April 2024 prices) at the date of first payment.

To give a better representation of the real value of the benefit across the whole period that rate was in force, the tables also show the real value of the benefit between up-rating periods. This calculation uses the average value of the benefit (in April 2024 prices) in each of the months the rate was used.

5. Price inflation and earnings growth indices in benefit up-rating since 1974

Over time, there have been various changes to the components of the indices that have been used to uprate benefits. The major changes are detailed in Annex C of the methodology statement.

6. About this release 

The tables accompanying this release can be found on the Abstract of DWP benefit rate statistics publication page. Please note that the data tables do not include supporting commentary and users should refer to this release and the policies and statements documents for background information.

These accredited official statistics were independently reviewed by the Office for Statistics Regulation in June 2013. They comply with the standards of trustworthiness, quality and value in the Code of Practice for Statistics and should be labelled ‘accredited official statistics’.

Accredited official statistics are called National Statistics in the Statistics and Registration Service Act 2007.

7. Known issues, changes and revisions to the abstract

As previously mentioned, the coronavirus (COVID-19) pandemic has had an impact on the survey methods and responses used by the ONS on both its inflation (CPI and RPI) and earnings (ASHE) measures. In the case of ASHE this is further affected by the impact of the Job Retention Scheme on furloughed earnings.

8. Where to find out more   

This document, supporting tables and background information can be found on the Abstract of DWP benefit rate statistics collection page.

Quality and methodology statements for the Abstract of DWP benefit rate statistics can be found under our policies and statements section.

For more information about the up-rating applied in the period up to April 2024 please see Benefit and pension rates 2024 to 2025.

For more information on the differences between CPI and RPI please read the Inflation and price indices.

Please also see an analysis by the ONS called Shortcomings of the Retail Prices Index as a measure of inflation.

Read details of other Accredited Official and Official Statistics produced by the Department for Work and Pensions.

For Accredited Official Statistics and Official Statistics regarding the main benefits administered by the Department for Work and Pensions (DWP), please read the DWP Benefit Statistics publication. Benefit Combination Statistics are included as part of the quarterly DWP benefits statistics collection and allow users to view the combinations of benefits that people claim at a point in time for almost all benefits administered by DWP.

For Official Statistics covering the number of claims, starts, people and households on Universal Credit, please read the Universal Credit statistics.

More detailed statistical tables covering many Accredited Official Statistics and Official Statistics for DWP benefits can be found using Stat-Xplore. This is an online tool that lets you create and download customised statistical tables and view the results in interactive charts.

9. Contact information and feedback

Lead Statistician: Tonia Hagan, tonia.hagan@dwp.gov.uk

Feedback

We are seeking your views about this publication. To help shape future releases we would very much like to learn more about how the release is being used, and how easy it is to find the information you need.

We are also asking for feedback on the suitability of sources used in relation to inflation and earnings. Your response to the questionnaire will help us understand the way our statistics are used and what users consider important.

Please see DWP abstract of DWP benefit rate statistics: user questionnaire.

Please send comments by email to: benefits.statistics@dwp.gov.uk

ISBN: 978-1-78659-787-8