Benefits Uprating 2020

This note sets out the main benefit and tax credit rates for the 2020/21 financial year.

Metadata
Provider: 
UK Parliament researchUK Parliament research
URL: 
https://researchbriefings.parliament.uk/ResearchBriefing/Summary/CBP-8806https://researchbriefings.parliament.uk/ResearchBriefing/Summary/CBP-8806
Retrieved on: 
Wednesday, February 5, 2020
Information
Tags: 
Gordon Brown, Pension Credit, Price indices, Economy, Tax credit, Indexation, Economics, Money, State Pension, Retail price index
Summary
Key Points: 
  • This note sets out the main benefit and tax credit rates for the 2020/21 financial year.
  • Indexation of benefits in line with the Consumer Prices Index (CPI) resumes for all inflation-linked benefits and tax credits this year, resulting in a 1.7% increase.
  • This follows a four-year period (2015/16-2019/20) during which most working-age benefits (except for disability and carers benefits) were held at their 2015/16 cash value, and a three-year period before that (2013/14-2015/16) when increases were limited to 1% per annum.
  • For the purposes of the 2020/21 uprating, earnings growth (+3.9%) was the highest of these three benchmarks, meaning that:

    Pension Credit Guarantee Credit is required to increase at least in line with earnings.

Copyright: 
2020 UK Parliament research. All Rights Reserved.