The annual up-rating of benefits will take place for state pensions and most other benefits in the first full week of the tax year. In 2020, this will be the week beginning 6 April.
The annual up-rating process takes into account a variety of measures:
The basic and new State Pensions will be increased by the Government’s ‘triple lock’ commitment, meaning that they will be up-rated in line with the highest of prices (CPI), earnings or 2.5%. Consequently, they will be up-rated by 3.9% (the May-July Average Weekly Earnings figure).
Pension Credit Minimum Guarantee will also be increased by earnings in line with legislation.
Pension Credit Savings Credit maximum amount will be increased in line with CPI (1.7%).
Benefits linked to the additional costs of disability, and for carers, are increased by the annual rise in prices (1.7%).
A number of other elements – including Non-Dependent Deductions – will also be up-rated in line with prices.
Working age benefits will be increased by CPI (1.7%) from April 2020.
Those linked to child tax and working tax credits will be up-rated in line with those benefits.
Universal Credit Work Allowances will be increased in line with CPI (1.7%) from April 2020.