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Statutory Review of Benefit and Pension Rates: 2022-23

Volume 704: debated on Thursday 25 November 2021

I have concluded my statutory annual review of benefit and state pension rates. The new rates will apply in the tax year 2022-23 and come into effect on 11 April 2022.

The consumer prices index (CPI) for the relevant reference period (the year to September 2021) was 3.1%, and I can confirm that benefits will increase in line with that. This is consistent with the use of this index since 2011. The weekly earnings limit in carer’s allowance will also be increased by 3.1%.

In line with the Social Security (Up-rating of Benefits) Act 2021, state pension rates will rise in line with CPI of 3.1%.

I also confirm that the local housing allowance rates for 2022-23 will be maintained at the elevated cash rates agreed for 2020-21. The Office for Budget Responsibility made this assumption too in its expenditure forecast.

All of these matters are transferred in Northern Ireland, and corresponding provision will be made there.

Some benefits are devolved to the Scottish Parliament, but there are benefits that are still temporarily being delivered by DWP on behalf of the Scottish Ministers under agency agreements; these will rise with CPI of 3.1%. The Scottish Government will need to bring forward corresponding uprating legislation in the Scottish Parliament.

I will place the full list of proposed benefit and pension rates for 2022-23 in the Libraries of both Houses.