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Departmental Accountancy

Volume 471: debated on Monday 4 February 2008

To ask the Secretary of State for Work and Pensions what items of his Department's (a) revenue and (b) expenditure are uprated using (i) the consumer prices index, (ii) the retail prices index and (iii) other measures of inflation. (179939)

Parliamentary approval for the Department for Work and Pensions' spending plans is sought through supply estimates presented to the House of Commons. Consequently the Department for Work and Pensions revenue is obtained from HM Treasury via the parliamentary vote system.

Sections 150 and 150A of the Social Security Administration Act 1992 prescribe the benefits that the Secretary of State for Work and Pensions must review on an annual basis and those that must be up-rated. The prices related indexes that are used in those benefits up-rated in line with prices are the retail prices index, and the rossi index (which is the retail prices index with the housing elements removed).

The following table shows the basis on which benefits have generally been uprated in recent years, some, but not all, of which are prescribed by legislation.

Benefit

Basis on which benefits have been uprated

Attendance allowance; disability living allowance

RPI

Carer's allowance

RPI

Incapacity benefit; severe disablement allowance

RPI

Industrial death benefit

Rate of widows pension

Industrial injuries disablement benefit

RPI

Income support; jobseeker's allowance; council tax benefit; housing benefit personal allowances; disability premium; enhanced disability premium; carer premium

Rossi

Amounts for dependent children/family premiums

Provided by HMRC

Pensioner premiums

By reference to pension credit standard minimum guarantee

Pensioner aged 60-64 (housing benefit and council tax benefit only)

Rate of pension credit standard minimum guarantee

Pensioner aged 65 and over (housing benefit and council tax benefit only)

Rate of pension credit standard minimum guarantee plus maximum savings credit

Severe disability premium

RPI

Non-dependant deductions

Earnings limits increased in line with average earnings

Service charges for fuel deduction (housing benefit only)

RPI fuel and light

Maternity allowance

Rate of statutory maternity pay

Pension Credit

Standard minimum guarantee

Earnings

Additional amount for severe disability

RPI

Additional amount for carers

Rossi

Maximum savings credit

Earnings1

Pneumoconiosis, byssinosis and miscellaneous diseases scheme and the workmen's compensation (supplementation)

RPI

State pension

RPI

Statutory maternity pay; statutory adoption pay2; statutory paternity pay2

RPI

Statutory sick pay

RPI

Widow's benefit

Rate of state pension

Bereavement benefits

Widowed parent's allowance

Rate of state pension

Bereavement allowance

Rate of state pension

1 From April 2008.

2 These payments are the responsibility of the Department for Business Enterprise and Regulatory Reform however they are up-rated by the Department for Work and Pensions.