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Social Security Benefits

Question for Department for Work and Pensions

UIN HL2504, tabled on 25 October 2017

To ask Her Majesty's Government what is their assessment of the impact of the changing cost of living on incomes, particularly for those in receipt of income-related benefits.

Answered on

2 November 2017

The Office for Budget Responsibility (OBR) forecasts rates of inflation (through the Consumer Price Index) and average earnings known as the OBR Historical Official Forecasts database. A copy of this is attached.

Using figures published in the OBR Historical Official Forecasts Database, we note that between 2018 and 2021 earnings growth is forecasted to be consistently higher than inflation.

Our welfare reforms to working-age benefits are part of the Government’s commitment to incentivise work as the best route out of poverty and support working families. This includes the introduction of the National Living Wage and cutting income tax for over 30 million people. For those in a position to work, earnings provide the best opportunity for income progression. Further, benefits for the additional cost of disability and benefits for pensioners continue to be uprated, as we are committed to supporting the most vulnerable groups.