Overview

This bill aims to increase certain social security benefits and tax credits by 1% for the tax years 2014-15 and 2015-16. The increase will only occur if the general level of prices has increased by at least 1% during the relevant period. The bill also details the process for implementing these increases and specifies which benefits and credits are affected.

Description

The Welfare Benefits Up-rating Bill mandates a 1% increase in specified social security benefits and tax credits for the tax years 2014-15 and 2015-16. This increase is conditional upon the general price level increasing by at least 1% during the relevant period, determined through annual reviews. The Secretary of State (for benefits) and the Treasury (for tax credits) are responsible for issuing statutory instruments to implement the increases. These instruments will specify the exact amounts and effective dates of the changes, with the possibility of rounding the sums up or down. The Government Actuary must report on the likely effect of benefit increases on the National Insurance Fund. Specific benefits and credits covered are detailed in the schedules to the Act. The Act defines 'relevant sums' and 'relevant amounts', each referring to specific monetary amounts within existing legislation regarding benefits and tax credits respectively. The legislation also includes provisions for Northern Ireland, ensuring that the bill's applications are spread accordingly.

Government Spending

The bill's impact on government spending is not explicitly stated in the provided text and would require additional analysis of the number of claimants for the affected benefits and credits and the magnitude of each benefit.

Groups Affected

The groups affected include:

• Recipients of various social security benefits (e.g., Income Support, Housing Benefit, Jobseeker's Allowance, Employment and Support Allowance) – these individuals would receive a 1% increase to their benefits, subject to inflation.
• Recipients of Working Tax Credit and Child Tax Credit – these individuals would receive a 1% increase to their tax credits, subject to inflation.
• The Treasury and the Department for Work and Pensions – these departments would be responsible for administering the changes.
• The National Insurance Fund – this fund would experience an increase in expenditure if benefits are increased.

Powered by nyModel