Social security payments due to increase in tax year 2021-2022
09 October 2020
Despite the economic turbulence created by the outbreak of coronavirus, legislation is in progress that will ensure that social security payments will increase in tax year 2021-22. The rates are due to be announced in November 2020, in line with the standard timeframes observed each year.
The Social Security (Uprating of Benefits) Bill 186 2019-21 was first published on 23 September 2020, with the purpose of allowing the uprating of the basic State Pension, the full rate of the new State Pension, the Standard Minimum Guarantee in Pension Credit, and survivors’ benefits in Industrial Death Benefit, in tax year 2021-22.
The Bill will mean that the Government can meet the requirements of the ‘triple lock’ for pensions, which means that the amount of state pension can be increased by the highest of:
- The increase to wages
- The increase to earnings
- 2.5%.
The Secretary of State will review inflation data for September, and earnings data for the quarter to July , and an announcement in relation to the increases will be made in November.
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