The Department for Work and Pensions (DWP) has confirmed adjustments to benefits and pensions for the next year.
The annual review of the Secretary of State for Work and Pensions has confirmed increases to benefit and state pension rates for the next year.
The rates will be raised in accordance with the Consumer Price Index (CPI), resulting in a 3.1% rise in payments.
The rate increase will affect working-age benefits, benefits to cope with increased needs deriving from disability, caregivers’ benefits, pensioner premiums in income-related benefits, Statutory Payments, and the Additional State Pension.
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The basic State Pension will rise to £141.85 per week as a result of the reforms, while the full amount of the new State Pension will rise to £185.15.
“In making this decision, the government carefully assessed the most fair approach for both retirees and younger taxpayers, many of whom have been worst hit by the financial repercussions of the pandemic,” the Department for Work and Pensions (DWP) said.
“In addition, we passed primary legislation last year to raise State Pensions by 2.5 percent at a time when earnings were down and price inflation was up half a percentage point.” State pensions would have been blocked if we hadn’t taken this measure.” The government will reintroduce the earnings component of the triple lock next year as a one-year response to exceptional circumstances.
The new rates will take effect on April 11, 2022, for the tax year 2022/23, and the increase to State Pensions will apply to Scotland, Wales, and England.