Increases to benefits in 2015

Benefit and tax credit increases used to be calculated using the Consumer Prices Index (CPI). However, in March 2013, the Welfare Benefits Up-Rating Act 2013 came into effect, limiting annual increases to these benefits to 1% for the three years 2013-14, 2014-15, and 2015-16.

The government argued that, as public sector pay rises were capped at 1%, a similar limit should apply to working-age benefits. The benefits affected are:

• Jobseeker’s Allowance;

• Employment and Support Allowance;

• Income Support;

• Elements of Housing Benefit;

• Maternity Allowance;

• Sick Pay, Maternity Pay, Paternity Pay, Adoption Pay;

• Statutory Sick Pay; and

• Couple and lone parent elements of Working Tax Credit and the child element of the Child Tax Credit.