Secretary of State for Work and Pensions (): The Social Security Administration Act 1992 places
an annual statutory duty on the Secretary of State to review the
rates of State Pensions and benefits after consideration of
trends in price and earnings growth in the preceding year. I have
now concluded this review for the tax year 2023/24.
I have decided that State Pension and benefit rates should
increase in line with the Consumer Prices Index (CPI) for the
year to September 2022. This means that they will increase by
10.1% from 10 April 2023.
I will deposit the full list of the new rates in the House
libraries in due course, but I am pleased to announce here the
increases to some of the largest benefits. The full rate of the
new State Pension will increase from £185.15 to £203.85 a week.
The basic State Pension will increase from £141.85 to £156.20 a
week. The Standard Minimum Guarantee for a couple in Pension
Credit will increase from £278.70 to £306.85 a week. The enhanced
rate of the daily living component of Personal Independence
Payment will increase from £92.40 to £101.75 a week. The
Universal Credit standard allowance for a couple where one or
both are over 25 will increase from £525.72 to £578.82 a month;
the Limited Capability for Work and Work-Related Activity amount
will increase from £354.28 to £390.06 a month; and the child
element for those born on or after 6 April 2017 will increase
from £244.58 to £269.58 a month.
This decision will increase expenditure on State Pensions and
pensioner benefits by £13 billion in 2023/24 compared to no
change in these rates for the same period. It will meet the
Government’s manifesto commitment to apply the Triple Lock to the
new and basic State Pensions. It will also extend CPI protection
to those who rely on the Standard Minimum Guarantee in Pension
Credit at a cost of £700 million above the statutory minimum
requirement.
The decision will also increase expenditure on reserved
non-pensioner benefits by £9 billion in 2023/24 compared to no
change in these rates for the same period. This includes benefits
for those with additional disability or care needs and increases
to Universal Credit which provides essential support to people on
the lowest incomes whilst they seek work, seek progression in
work, or are unable to work.
In view of the exceptional situation that currently pertains with
respect to fuel costs, I have also decided to freeze the standard
fuel cost deductions in Housing Benefit, rather than increase
them in line with the normal convention of the fuel element of
CPI.
I can also confirm that the Local Housing Allowance rates for
2023/24 will be maintained in cash terms at the elevated rates
agreed for 2020/21.
I have also completed my periodic statutory review of the levels
of the benefit cap which, since 24 March 2022 and under Section
96A of the Welfare Reform Act 2012, I am obliged to undertake at
least once every five years. I have concluded that each of the
four benefit cap levels should be increased in line with CPI for
the year to September 2022. This means that they will increase by
10.1% from April 2023. The annual benefit cap levels will
therefore increase as follows:
- to £25,323 for couples and lone parents in London and £22,020
for the rest of Great Britain.
- to £16,967 for single people without children in London and
£14,753 for therest of Great Britain.
Social security is a transferred matter in Northern Ireland.
