To ask the Secretary of State for Work and Pensions, what recent assessment her Department has made on the projected spending power of universal credit as a result of rising inflation.
4 April 2022
No assessment has been made.
The Secretary of State undertakes an annual review of benefits and pensions. This is based on the Consumer Price Index (CPI) in the year to September (published by the Office for National Statistics in October) as the latest figure that the Secretary of State can use to allow sufficient time for the required legislative and operational changes to be made before new rates can be introduced at the start of the new financial year.
All benefit up-rating since April 1987 has been based on the increase in the relevant price inflation index in the 12 months to the previous September, as happens now.
For up-rating 2022/23 the Secretary of State announced the outcome of her annual review to Parliament on 25 November 2021 and from April 2022 benefits and pensions will increase by 3.1%.