Increases to benefits in 2013

Benefit and tax credit increases are calculated using the Consumer Prices Index (CPI). The TUC has pointed out that in most years the CPI is lower than the Retail Prices Index (RPI) and does not include housing costs.

The majority of working age benefits would have been due to go up by 2.2% from 6 April 2013. But in January 2013 the government won a crucial vote in Parliament on its plan to limit annual increases to these benefits to 1% for the next three years.

The government argued that, with public sector pay rises 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; and

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