Social Security Benefits: Cost of Living
The question
To ask the Secretary of State for Work and Pensions, if his Department will make an assessment of the potential merits of introducing an independent process to set benefit levels in line with essential costs.
Answered by Sir Stephen Timms
The Social Security Administration Act 1992 requires the Secretary of State for Work and Pensions to review benefit and State Pension rates each year to see if they have retained their value in relation to the general level of prices or earnings. Where the relevant benefit or State Pension rates have not retained their value, legislation provides that the Secretary of State is required to, or in some instances may, up-rate their value. Following this review, State Pension and benefit rates are increased in line with statutory minimum amounts and others are increased subject to Secretary of State’s discretion.
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