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Written question asked by Rachel Reeves (Labour) on Tuesday, 25 October 2011, in the House of Commons. It was due for an answer on Monday, 31 October 2011. It was answered by Steve Webb (Liberal Democrat) on Monday, 31 October 2011 on behalf of the Department for Work and Pensions.

Pensions

Question
To ask the Secretary of State for Work and Pensions what his estimate is of the cost of uprating for 2012-13 (a) pensions and (b) all other benefits in line with (i) September's consumer prices index and (ii) the OBR's March forecast for the consumer prices index.
Answer

The information requested is provided in the following tables for pensions and all other benefits paid by the Department for Work and Pensions.These costs are indicative only. Actual costs will be dependent on increases in benefit rates in April 2012. Proposed benefit rates will be announced to Parliament by ministerial statement later in the autumn.

(i) Cost of uprating for 2012-13 under September 2011 outturn CPI, 2011/12 prices
£ billion
Pension benefits 4.6
All other benefits 2.1
Source:
DWP Forecasting Model.
(ii) Cost of uprating for 2012-13, under March 2011 forecast CPI, 2011-12 prices
£ billion
Pension benefits 3.7
All other benefits 1.8
Notes:
1. The costing in part (i) is based on the September 2011 outturn CPI and May to July 2011 outturn average earnings for pension credit.
2. The costing in part (ii) is based on the Office for Budget Responsibility's 2011 quarter 3 CPI forecast, and 2011 quarter 2 average earnings forecast for pension credit, as published in the Budget Report March 2011.
3. 'Pension benefits' include basic state pension uprated with the triple lock policy, additional pension and graduated retirement pension uprated by CPI and pension credit uprated by average earnings.
4. 'All other benefits' refers to working age benefits including: income support, jobseeker's allowance, employment and support allowance, incapacity benefit maternity allowances and statutory sick pay, and also housing benefits and disability benefits. All are uprated by CPI.
Source:
DWP Forecasting Model.

Secondary information

Type
Written question
Reference
77307; 534 c422W
Session
2010-12
Subjects
Social security benefits Uprating
Contains statistics
Yes
Link
View this Written question on www.publications.parliament.uk