Fact Service October 2010

Issue 41

Uprating of benefits

The September inflation figures are important as they are used to uprate pensions and benefits.

The 4.6% rise in the RPI inflation figure means that the basic state pension for a single person will rise from £97.65 a week to £102.15 next April. The couple’s pension will go up to £163.35.

However, the National Pensioners’ Convention fears that the government’s impending Comprehensive Spending Review will attack benefits like the Winter Fuel allowance and free travel and so eat into that increase.

The NPC are holding a rally and lobby of Parliament on the 27 October for a decent state pension and for no government attacks on the few benefits pensioners enjoy at the moment.

In an attack on benefits, the government has moved to the CPI rate of inflation for uprating benefits so the 3.1% rise for September will be applied, for example, to Jobseeker’s Allowance. This will rise to £67.50 a week for those aged 25 or over.

Tax credits and public sector pensions will also only rise by the 3.1% CPI inflation rate rather than the 4.6% RPI rate.

www.npcuk.org/

www.bbc.co.uk/news/business-11521293