DWP: Impact assessment on social security benefits uprating order 2013

What is the problem under consideration?

Why is government intervention necessary?

Welfare expenditure is a significant driver of public spending, and the Government has made a commitment to deliver a more sustainable welfare system. In the Autumn Statement (2012), it was announced that in light of the national economic situation, certain working-age social security benefits and payments, certain elements of tax credits, and Child Benefit, would be up-rated by 1 per cent rather than by prices (as measured by the Consumer Prices Index (‘CPI’)) for the tax years 2013/14, 2014/15 and 2015/16.

The Social Security Benefits Uprating Order effects the policy for some of these benefits in 2013/14 only

• The main working-age rates of Income Support, Jobseeker’s Allowance, Employment and Support Allowance and Housing Benefit; the work-related activity group component of Employment and Support Allowance;
• Statutory Sick Pay and standard rate elements of, Statutory Maternity Pay, Statutory Paternity Pay, Statutory Adoption Pay; and Maternity Allowance.

Furthermore, there are some changes to Pension Credit and Savings Credit compared to the expected baseline.

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