My right honourable friend the Secretary of State for Work and Pensions (John Hutton) has made the following Written Ministerial Statement.
The proposed rates of benefit for 2007 are set out in the table below. The annual uprating of benefits will take place for state pension and most other benefits in the first full week of the tax year. In 2007, this will be the week beginning 9 April. My right honourable friend the Secretary of State for Northern Ireland proposes to introduce similar changes for Northern Ireland.
(Weekly rates unless otherwise shown) 2006 2007 Attendance Allowance higher rate 62.25 64.50 lower rate 41.65 43.15 Carer's Allowance 46.95 48.65 Council Tax Benefit Personal allowances single 18 to 24 45.50 46.85 25 or over 57.45 59.15 lone parent - 18 or over 57.45 59.15 couple - one or both over 18 90.10 92.80 dependent children from birth to September following 16th birthday 45.58 47.45 from September following 16th birthday to day before 20th birthday 45.58 47.45 pensioner (from October 2003) single/lone parent - 60 to 64 114.05 119.05 couple - one or both 60 to 64 174.05 181.70 single/lone parent 65 and over 131.95 138.10 couple - one or both 65 and over 197.65 207.00 Premiums family 16.25 16.43 family (lone parent rate) 22.20 22.20 child under 1 10.50 10.50 pensioner single 56.60 59.90 couple 83.95 88.90 pensioner (enhanced) single 56.60 59.90 couple 83.95 88.90 pensioner (higher) single 56.60 59.90 couple 83.95 88.90 disability single 24.50 25.25 couple 34.95 36.00 enhanced disability premium single rate 11.95 12.30 disabled child rate 18.13 18.76 couple rate 17.25 17.75 severe disability single 46.75 48.45 couple (lower rate) 46.75 48.45 couple (higher rate) 93.50 96.90 disabled child 45.08 46.69 carer 26.35 27.15 Non-dependant deductions aged 18 or over and in remunerative work gross income: £353 or more 6.95 6.95 gross income: £283 to £352.99 5.80 5.80 gross income: £164 to £282.99 4.60 4.60 gross income less than £164 2.30 2.30 Others aged 18 or over 2.30 2.30 Alternative maximum Council Tax Benefit second adult on IS, JSA(IB) or Pension Credit 25% of Council Tax 25% of Council Tax first adult(s) student(s) 100% of Council Tax second adult's gross income: under £162 15% of Council Tax 15% of Council Tax £162 to £209.99 7.5% of Council Tax 7.5% of Council Tax Capital upper limit 16,000.00 16,000.00 amount disregarded 6,000.00 6,000.00 upper limit (claimant/partner 60 or over) 16,000.00 16,000.00 upper limit (PC guarantee) from October 2003 No limit No limit amount disregarded (claimant/partner 60 or over) 6,000.00 6,000.00 child disregard 3,000.00 3,000.00 upper limit of RC/NH 16,000.00 16,000.00 amount disregarded of RC/NH 10,000.00 10,000.00 Tariff Income £1 for every complete £250 or part thereof between amount of capital disregarded and capital upper limit Tariff income (claimant/partner 60 or over) from October 2003 £1 for every £500 or part thereof between amount of capital disregard and capital upper limit Earnings disregards where disability premium awarded 20.00 20.00 various specified employments 20.00 20.00 lone parent 25.00 25.00 where the claimant has a partner 10.00 10.00 single claimant 5.00 5.00 where carer premium awarded 20.00 20.00 childcare charges 175.00 175.00 childcare charges (two or more children) 300.00 300.00 Other income disregards maintenance disregard 15.00 15.00 war disablement pension and war widow's pension 10.00 10.00 Armed Forces Compensation Scheme 10.00 10.00 student loan 10.00 10.00 student's covenanted income 5.00 5.00 income from boarders: disregard the fixed amount (£20) plus 50% of the balance of the charge 20.00 20.00 additional earnings disregard 14.90 15.45 Expenses for subtenants furnished or unfurnished 4.00 4.00 where heating is included, additional 11.95 15.45 Dependency Increases Adult Dependency Increases for spouse or person looking after children, with: state pension on own insurance 50.50 52.30 long-term incapacity benefit, unemployability supplement 46.95 48.65 severe disablement allowance 28.25 29.25 carer’s allowance 28.05 29.05 short-term incapacity benefit if beneficiary over state pension age 45.15 46.80 maternity allowance/short-term incapacity benefit 36.60 37.90 Child Dependency Increases with: state pension, widowed mother’s allowance, widowed parent’s allowance, short-term incapacity benefit at the higher rate and long term incapacity benefit, carer’s allowance, severe disability allowance, higher-rate industrial death benefit, unemployability supplement and short-term incapacity benefit if beneficiary over pension age 11.35 11.35 NB - The Overlapping Benefits Regulations provide for the rate of child dependency increases to be adjusted where the increase is payable for the eldest eligible child for whom child benefit is also payable. The weekly rate of the increase is reduced by the differential (less £3.65 from April 2004) between the rate of child benefit payable for the oldest eligible child and that payable for a subsequent child. Disability Living Allowance Care Component highest 62.25 64.50 middle 41.65 43.15 lowest 16.50 17.10 Mobility Component higher 43.45 45.00 lower 16.50 17.10 Earnings Rules Carer’s Allowance 84.00 87.00 Limit of earnings from councillor's allowance 81.00 86.00 Permitted work earnings limit 81.00 86.00 Industrial injuries unemployability supplement permitted earnings level (annual amount) 4,212.00 4,472.00 Adult dependency increases with short-term incapacity benefit where claimant is (a) under state pension age 36.60 37.90 (b) over state pension age 45.15 46.80 maternity allowance 36.60 37.90 state pension, long-term incapacity benefit, severe disablement allowance, unemployability supplement where dependant (a) is living with claimant 57.45 59.15 (b) still qualifies for the tapered earnings rule 45.09 45.09 state pension, 50.50 52.30 long-term incapacity benefit and unemployability supplement where dependant not living with claimant 46.95 48.65 severe disablement allowance where dependant not living with claimant 28.25 29.25 carer’s allowance 28.05 29.05 child dependency increases level at which CDIs are affected by earnings of claimant's spouse or partner or first child 175.00 180.00 for each subsequent child 23.00 24.00 Housing Benefit Personal Allowances single 16 to 24 45.50 46.85 25 or over 57.45 59.15 lone parent under 18 45.50 46.85 18 or over 57.45 59.15 couple both under 18 68.65 70.70 one or both 18 or over 90.10 92.80 dependent children from birth to September following 16th birthday 45.58 47.45 from September following 16th birthday to day before 20th birthday 45.58 47.45 pensioner (from October 2003) single lone parent - 60 to 64 114.05 119.05 couple - one or both 60 to 64 174.05 181.70 single/lone parent - 65 and over 131.95 138.10 couple - one or both 65 and over 197.65 207.00 Premiums Family 16.25 16.43 family (lone parent rate) 22.20 22.20 child under 1 10.50 10.50 pensioner single 56.60 59.90 couple 83.95 88.90 pensioner (enhanced) single 56.60 59.90 couple 83.95 88.90 pensioner (higher) single 56.60 59.90 couple 83.95 88.90 disability single 24.50 25.25 couple 34.95 36.00 enhanced disability premium single rate 11.95 12.30 disabled child rate 18.13 18.76 couple rate 17.25 17.75 severe disability single 46.75 48.45 couple (lower rate) 46.75 48.45 couple (higher rate) 93.50 96.90 disabled child 45.08 46.69 carer 26.35 27.15 Non-dependant deductions rent rebates and allowances aged 25 and over, in receipt of Income Support or income-based Job Seeker’s Allowance aged 18 or over, not in remunerative work gross income less than £111 7.40 7.40 aged 18 or over and in remunerative work gross income: less than £111 7.40 7.40 gross income: £111 to £163.99 17.00 17.00 gross income: £164 to £212.99 23.35 23.35 gross income: £213 to £282.99 38.20 38.20 gross income: £283 to £352.99 43.50 43.50 gross income: £353 and above 47.75 47.75 Service charges for fuel heating 11.95 15.45 hot water 1.40 1.80 lighting 0.95 1.25 cooking 1.40 1.80 Amount ineligible for meals three or more meals a day single claimant 20.50 21.10 each person in family aged 16 or over 20.50 21.10 each child under 16 10.35 10.65 less than three meals a day single claimant 13.65 14.05 each person in family aged 16 or over 13.65 14.05 each child under 16 6.85 7.05 breakfast only - claimant and each member of family 2.50 2.60 Capital upper limit 16,000.00 16,000.00 amount disregarded 6,000.00 6,000.00 upper limit (claimant/partner 60 or over) 16,000.00 16,000.00 upper limit (PC guarantee) from October 2003 No limit No limit amount disregarded (claimant/partner 60 or over) 6,000.00 6,000.00 child disregard 3,000.00 3,000.00 upper limit of RC/NH 16,000.00 16,000.00 amount disregarded of RC/NH 10,000.00 10,000.00 Tariff income £1 for every complete £250 or part thereof between amount of capital disregarded and capital upper limit Tariff income (claimant/partner 60 or over) from October 2003 £1 for every £500 or part thereof between amount of capital disregard and capital upper limit Earnings disregards where disability premium awarded 20.00 20.00 various specified employments 20.00 20.00 lone parent 25.00 25.00 where the claimant has a partner 10.00 10.00 single claimant 5.00 5.00 where carer premium awarded 20.00 20.00 childcare charges 175.00 175.00 childcare charges (two or more children) 300.00 300.00 Other income disregards maintenance disregard 15.00 15.00 war disablement pension and war widow's pension 10.00 10.00 Armed Forces Compensation Scheme 10.00 10.00 student loan 10.00 10.00 student's covenanted income 5.00 5.00 income from boarders: disregard the fixed amount (£20) plus 50% of the balance of the charge 20.00 20.00 additional earnings disregard 14.90 15.45 Expenses for subtenants furnished or unfurnished 4.00 4.00 where heating is included, additional 11.95 15.45 Maximum rates for recovery of overpayments ordinary overpayments 8.70 9.00 where claimant convicted of fraud 11.60 12.00 Incapacity Benefit Long-term Incapacity Benefit 78.50 81.35 Short-term Incapacity Benefit (under state pension age) lower rate 59.20 61.35 higher rate 70.05 72.55 Short-term Incapacity Benefit (over state pension age) lower rate 75.35 78.05 higher rate 78.50 81.35 Increase of Long-term Incapacity Benefit for age higher rate 16.50 17.10 lower rate 8.25 8.55 Invalidity Allowance (Transitional) higher rate 16.50 17.10 middle rate 10.60 11.00 lower rate 5.30 5.50 Income Support Personal Allowances single under 18 - usual rate 34.60 35.65 under 18 - higher rate payable in specific circumstances 45.50 46.85 18 to 24 45.50 46.85 25 or over 57.45 59.15 lone parent under 18 - usual rate 34.60 35.65 under 18 - higher rate payable in specific circumstances 45.50 46.85 18 or over 57.45 59.15 Couple both under 18 34.60 35.65 both under 18, one disabled 45.50 46.85 both under 18, with responsibility for a child 68.65 70.70 one under 18, one 18 to 24 45.50 46.85 one under 18, one 25 or over 57.45 59.15 both 18 or over 90.10 92.80 dependent children birth to September following 16th birthday 45.58 47.45 from September following 16th birthday to day before 20th birthday 45.58 47.45 Premiums family 16.25 16.43 family (lone parent rate) 16.25 16.43 pensioner couple 83.95 88.90 pensioner (enhanced) couple 83.95 88.90 pensioner (higher) couple 83.95 88.90 disability single 24.50 25.25 couple 34.95 36.00 enhanced disability premium single rate 11.95 12.30 disabled child rate 18.13 18.76 couple rate 17.25 17.75 severe disability single 46.75 48.45 couple (lower rate) 46.75 48.45 couple (higher rate) 93.50 96.90 disabled child 45.08 46.69 carer 26.35 27.15 Housing costs deduction for non-dependants aged 25 and over, in receipt of Income Support or income-based Job Seeker’s Allowance aged 18 or over, not in work 7.40 7.40 aged 18 or over and in remunerative work gross income: less than £111 7.40 7.40 gross income: £111 to £163.99 17.00 17.00 gross income: £164 to £212.99 23.35 23.35 gross income: £213 to £282.99 38.20 38.20 gross income: £283 to £352.99 43.50 43.50 gross income: £353 and above 47.75 47.75 Deduction for third-party payments arrears of housing, fuel and water costs council tax etc 2.90 3.00 Child support maintenance deductions contribution towards maintenance (CTM) deductions for child maintenance (CTM) standard 5.80 6.00 deductions for child maintenance (CTM) lower 2.90 3.00 Arrears of Community Charge court order against claimant 2.90 3.00 court order against couple 4.55 4.65 third-party deductions personal expenses allowance 19.60 20.45 third-party deduction for fine or compensation order standard rate 5.00 5.00 lower rate 2.90 3.00 Maximum rates for recovery of overpayments ordinary overpayments 8.70 9.00 where claimant convicted of fraud 11.60 12.00 Relevant sum for strikers 31.00 32.00 Capital upper limit 16,000.00 16,000.00 amount disregarded 6,000.00 6,000.00 upper limit (partner 60 or over) 16,000.00 16,000.00 amount disregarded (partner 60 or over) 6,000.00 6,000.00 child's limit 3,000.00 3,000.00 upper limit (RC/NH) 16,000.00 16,000.00 Amount disregarded (RC/NH) 10,000.00 10,000.00 Tariff income £1 for every complete £250 or part thereof between amount of capital disregarded and capital upper limit Disregards standard earnings 5.00 5.00 couples earnings 10.00 10.00 higher earnings 20.00 20.00 war disablement pension and war widow's pension 10.00 10.00 Armed Forces Compensation Scheme 10.00 10.00 student loan 10.00 10.00 student's covenanted income 5.00 5.00 Income from boarders: disregard the fixed amount (£20) plus 50% of the balance of the charge 20.00 20.00 Expenses for subtenants furnished or unfurnished 4.00 4.00 where heating is included, additional 11.95 15.45 Industrial Death Benefit Widow's pension higher rate 84.25 87.30 lower rate 25.28 26.19 Widower's pension 84.25 87.30 Industrial Injuries Disablement Pension 18 and over, or under 18 with dependants 100% 127.10 131.70 90% 114.39 118.53 80% 101.68 105.36 70% 88.97 92.19 60% 76.26 79.02 50% 63.55 65.85 40% 50.84 52.68 30% 38.13 39.51 20% 25.42 26.34 Under 18 100% 77.90 80.70 90% 70.11 72.63 80% 62.32 64.56 70% 54.53 56.49 60% 46.74 48.42 50% 38.95 40.35 40% 31.16 32.28 30% 23.37 24.21 20% 15.58 16.14 Maximum life gratuity (lump sum) 8,450.00 8,750.00 Unemployability Supplement 78.50 81.35 plus where appropriate an increase for early incapacity higher rate 16.50 17.10 middle rate 10.60 11.00 lower rate 5.30 5.50 Maximum reduced earnings allowance 50.84 52.68 Maximum retirement allowance 12.71 13.17 Constant attendance allowance exceptional rate 101.80 105.40 intermediate rate 76.35 79.05 normal maximum rate 50.90 52.70 part-time rate 25.45 26.35 Exceptionally severe disablement allowance 50.90 52.70 Jobseeker’s Allowance Contribution-based JSA - personal rates under 18 34.60 35.65 18 to 24 45.50 46.85 25 or over 57.45 59.15 Income-based JSA - personal allowances under 18 34.60 35.65 18 to 24 45.50 46.85 25 or over 57.45 59.15 lone parent under 18 - usual rate 34.60 35.65 under 18 - higher rate payable in specific circumstances 45.50 46.85 18 or over 57.45 59.15 couple both under 18 34.60 35.65 both under 18, one disabled 45.50 46.85 both under 18, with responsibility for a child 68.65 70.70 one under 18, one 18 to 24 45.50 46.85 one under 18, one 25 or over 57.45 59.15 both 18 or over 90.10 92.80 dependent children from birth to September following 16th birthday 45.58 47.45 from September following 16th birthday to day before 20th birthday 45.58 47.45 Premiums family 16.25 16.43 family (lone parent rate) 16.25 16.43 pensioner single 56.60 59.90 couple 83.95 88.90 pensioner (enhanced) couple 83.95 88.90 pensioner (higher) single 56.60 59.90 couple 83.95 88.90 disability single 24.50 25.25 couple 34.95 36.00 enhanced disability premium single rate 11.95 12.30 disabled child rate 18.13 18.76 couple rate 17.25 17.75 severe disability single 46.75 48.45 couple (lower rate) 46.75 48.45 couple (higher rate) 93.50 96.90 disabled child 45.08 46.69 carer 26.35 27.15 Housing costs deduction for non-dependants aged 25 and over, in receipt of Income Support or income based Job Seeker’s Allowance, aged 18 or over, not in remunerative work 7.40 7.40 aged 18 or over and in remunerative work gross income: less than £111 7.40 7.40 gross income: £111 to £163.99 17.00 17.00 gross income: £164 to £212.99 23.35 23.35 gross income: £213 to £282.99 38.20 38.20 gross income: £283 to £352.99 43.50 43.50 gross income: £353 and above 47.75 47.75 Deduction for third-party payments Deductions from JSA(IB) arrears of housing, fuel and water costs, council tax, etc 2.90 3.00 Child support maintenance deductions contribution towards maintenance (CTM) deductions for child maintenance (CTM) standard 5.80 6.00 deductions for child maintenance (CTM) lower 2.90 3.00 Arrears of Community Charge court order against claimant 2.90 3.00 court order against couple 4.55 4.65 Third-party deductions personal expenses allowance 19.60 20.45 Deductions from JSA (cont.) Arrears of community charge, council tax, fines & overpayment recovery Age 16 to 17 11.53 11.88 Age 18 to 24 15.16 15.61 Age 25 or over 19.15 19.71 Maximum deductions for arrears of child maintenance (CTM) Age 16 to 17 11.53 11.88 Age 18 to 24 15.16 15.61 Age 25 or over 19.15 19.71 Third-party deduction for fine or compensation order standard rate 5.00 5.00 lower rate 2.90 3.00 Maximum rates for recovery of overpayments in JSA(IB) ordinary overpayments 8.70 9.00 Where claimant convicted of fraud 11.60 12.00 Prescribed sum for strikers 31.00 32.00 Capital upper limit 16,000.00 16,000.00 amount disregarded 6,000.00 6,000.00 child's limit 3,000.00 3,000.00 upper limit (RC/NH) 16,000.00 16,000.00 amount disregarded (RC/NH) 10,000.00 10,000.00 upper limit (partner 60 or over) 16,000.00 16,000.00 amount disregarded (partner 60 or over) 6,000.00 6,000.00 Tariff income £1 for every complete £250 or part thereof between amount of capital disregarded and capital upper limit Disregards standard earnings 5.00 5.00 couple’s earnings 10.00 10.00 higher earnings 20.00 20.00 war disablement pension and war widow's pension 10.00 10.00 Armed Forces Compensation Scheme 10.00 10.00 student loan 10.00 10.00 student's covenanted income 5.00 5.00 income from boarders: disregard the fixed amount (£20) plus 50% of the balance of the charge 20.00 20.00 Expenses for subtenants furnished or unfurnished 4.00 4.00 where heating is included, additional 11.95 15.45 Maternity Allowance standard rate 108.85 112.75 MA threshold 30.00 30.00 Pension Credit standard minimum guarantee single 114.05 119.05 couple 174.05 181.70 Additional amount for severe disability single 46.75 48.45 couple (one qualifies) 46.75 48.45 couple (both qualify) 93.50 96.90 additional amount for carers 26.35 27.15 Savings credit threshold - single 84.25 87.30 threshold - couple 134.75 139.60 maximum - single 17.88 19.05 maximum - couple 23.58 25.26 Capital Amount disregard 6,000.00 6,000.00 Amount disregard - care homes 10,000.00 10,000.00 Deemed income £1 for each complete £500 or part thereof in excess of above amounts Housing costs Deduction for non-dependants aged 18 or over, in receipt of IS/JSA(IB) and over 25 7.40 7.40 aged 18 or over and in work: aged 18 or over and in remunerative work gross income: less than £111 7.40 7.40 gross income: £111 to £163.99 17.00 17.00 gross income: £164 to £212.99 23.35 23.35 gross income: £213 to £282.99 38.20 38.20 gross income: £283 to £352.99 43.50 43.50 gross income: £353 and above 47.75 47.75 Amount for claimant and first spouse in polygamous marriage 174.05 181.70 Additional amount for additional spouse 60.00 62.65 Disregards standard earnings 5.00 5.00 couples earnings 10.00 10.00 higher earnings 20.00 20.00 war disablement pension and war widow’s pension 10.00 10.00 Armed Forces Compensation Scheme 10.00 10.00 Widowed Parent's Allowance 10.00 10.00 Income from subtenants 20.00 20.00 Income from boarders 20.00 20.00 (disregard the fixed amount (£20) plus 50% of the balance of the charge) Third-party deductions arrears of housing, fuel, water costs, council tax etc 2.90 3.00 Child support maintenance deductions contribution towards maintenance (CTM) deductions for child maintenance (CTM) standard 5.80 6.00 deductions for child maintenance (CTM) lower 2.90 3.00 Arrears of Community Charge court order against claimant 2.90 3.00 court order against couple 4.55 4.65 Maximum rates of recovery of overpayments ordinary overpayments 8.70 9.00 where claimant convicted of fraud 11.60 12.00 third-party deductions 19.60 20.45 personal expenses allowance Third-party deduction for fine or compensation order standard rate 5.00 5.00 lower rate 2.90 3.00 Pneumoconiosis, Byssinosis, and Miscellaneous Diseases Scheme and the Workmen's Compensation (Supplementation) total disablement allowance and major incapacity allowance (maximum) 127.10 131.70 partial disablement allowance 46.95 48.65 unemployability supplement 78.50 81.35 plus where appropriate increases for early incapacity higher rate 16.50 17.10 middle rate 10.60 11.00 lower rate 5.30 5.50 Constant attendance allowance exceptional rate 101.80 105.40 intermediate rate 76.35 79.05 normal maximum rate 50.90 52.70 part-time rate 25.45 26.35 Exceptionally severe disablement allowance 50.90 52.70 Lesser incapacity allowance maximum rate of allowance 46.95 48.65 based on loss of earnings over 62.25 64.50 State Pension Category A or B 84.25 87.30 Category B (lower) - husband's insurance 50.50 52.30 Category C or D - non-contributory 50.50 52.30 Category C (lower) - non-contributory 30.20 31.30 Additional pension Increase by: 3.6% Increments to: Increase by: Basic pension 3.6% Additional pension 3.6% Graduated Retirement Benefit (GRB) 3.6% Inheritable lump sum 3.6% Contracted-out deduction from AP in respect of pre-April 1988 contracted-out earnings Nil Contracted-out deduction from AP in respect of contracted-out earnings from April 1988 to 1997 3.0% Graduated Retirement Benefit (unit) 0.1020 0.1057 Graduated Retirement Benefit (inherited) Increase by: 3.6% Addition at age 80 0.25 0.25 Severe Disablement Allowance basic rate 47.45 49.15 age-related addition (from Dec 90) higher rate 16.50 17.10 middle rate 10.60 11.00 lower rate 5.30 5.50 Statutory Adoption Pay earnings threshold 84.00 87.00 standard rate 108.85 112.75 Statutory Maternity Pay earnings threshold 84.00 87.00 standard rate 108.85 112.75 Statutory Paternity Pay earnings threshold 84.00 87.00 standard rate 108.85 112.75 Statutory Sick Pay earnings threshold 84.00 87.00 standard rate 70.05 72.55 Widow's Benefit Widowed mother's allowance 84.25 87.30 Widow's pension standard rate 84.25 87.30 age-related age 54 (49) 78.35 81.19 53 (48) 72.46 75.08 52 (47) 66.56 68.97 51 (46) 60.66 62.86 50 (45) 54.76 56.75 49 (44) 48.87 50.63 48 (43) 42.97 44.52 47 (42) 37.07 38.41 46 (41) 31.17 32.30 45 (40) 25.28 26.19 Note: For deaths occurring before 11 April 1988 refer to age-points shown in brackets. Bereavement Benefit Bereavement payment (lump sum) 2000.00 2000.00 Widowed parent's allowance 84.25 87.30 Bereavement Allowance standard rate 84.25 87.30 Age-related Age 54 78.35 81.19 53 72.46 75.08 52 66.56 68.97 51 60.66 62.86 50 54.76 56.75 49 48.87 50.63 48 42.97 44.52 47 37.07 38.41 46 31.17 32.30 45 25.28 26.19