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PIP, ESA and most other benefits will increase by just 0.5% in next year’s annual uprating, Therese Coffey, secretary of state for work and pensions told MPs today.

Coffey announced that “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” will increase in line with CPI. This has increased by only 0.5% in the relevant period.

By our calculations, even a claimant on the maximum award of PIP will receive just 76p a week extra.

An ESA support group claimant will get an additional 57p a week, those in the work-related activity group will see their income rise by 37p.

There was also bad news for universal credit claimants. Coffey revealed that no decision has been made as to whether the £20 uplift to universal credit and working tax credit will continue once it has been in place for a year in March 2021. A further announcement is likely in the new year.

There was no indication whatsoever that the DWP is considering an uplift of £20 in legacy benefits to match universal credit, in spite of the continuing campaign for such a measure

Coffey has, however, used her discretionary powers to increase the state pension by 2.5%, stating that:

“The full rate of the new State Pension will now be worth £179.60 per week. The Standard Minimum Guarantee in Pension Credit will also increase by the same cash amount as the basic State Pension, rising by 1.9%.”

The new rates come into effect on 12 April 2021.  

With a potential increase in the cost of household goods looming when Brexit arrives, such tiny increases mean a tough year ahead for many claimants

You can read Coffey’s statement in full on the parliament website.

 

Comments  

+1 #7 Ant 2021-04-30 10:49
The High Court is to decide whether it's unlawful of the government not to also give the £20 per week uplift to those on legacy benefits.

osborneslaw.com/high-court-challenge-to-denial-of-benefit-increases-for-nearly-2m-people-with-disabilities/
#5 Crazydiamond 2021-03-08 08:15
Quoting Ant:
Crazydiamond: apparently, a legal challenge has just been issued against the disparity in treatment of legacy benefit claimants and Universal Credit claimants, specifically on the £20 per week uplift.

https://twitter.com/willfordosblaw/status/1367893924195561474?s=19


Thank you for the information. I was wondering if/when it would ever happen? A case now of wait and see.
+1 #4 Ant 2021-03-07 13:04
Crazydiamond: apparently, a legal challenge has just been issued against the disparity in treatment of legacy benefit claimants and Universal Credit claimants, specifically on the £20 per week uplift.

twitter.com/willfordosblaw/status/1367893924195561474?s=19
#3 Ant 2021-03-02 12:00
There is something we can do. Sign and share this petition calling on the government to increase benefits above the rate of inflation.

Reverse the benefits freeze https://petition.parliament.uk/petitions/569505
+1 #2 Crazydiamond 2020-11-28 08:47
I cannot understand why the decision not to increase legacy benefits by £20 a week, was not subject to any legal challenge?

The decision to increase only Universal Credit and Working Tax Credit, was in my opinion, manifestly without reasonable foundation. No doubt however, the lawyers must have examined the legal options, and decided that there were no grounds to pursue a claim?

Having effectively what amounts to a two-tier benefit system, with claimants of equal status, is unique in the social security system. The reason put forward by the DWP, referring to problems with updating the legacy benefit computer system and for not uprating legacy benefits, is spurious to say the least!
+1 #1 mrfibrospondodysthmatic 2020-11-27 16:58
0.5% not surprising after the Gov has spent hundreds of billions of £'s in the past recent months.

57p and or 76p increase per week will not help claimants with the increase of any daily costs. As in regards to having to shell out on higher rising utility bill costs.

Tough times ahead for us all, as per usual.

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