Overview

This bill amends the Social Security Administration Act 1992, allowing the UK government more flexibility in adjusting certain social security benefits, including the state pension, annually. The changes primarily address how benefit increases are determined when earnings remain stagnant or decrease.

Description

The bill modifies the annual uprating mechanism for social security benefits. Specifically, it adds a new subsection (2A) to Section 150A of the 1992 Act. This new subsection allows the Secretary of State (or Scottish Ministers for relevant benefits) to increase benefits by a percentage of their choosing, even if the general level of earnings has not increased or has decreased since the previous review. This decision will be based on the national economic situation and other relevant factors. The bill also amends subsection (4) to include the new subsection (2A) within the uprating process. The bill applies to England, Wales, and Scotland only and comes into force upon being passed.

Government Spending

The bill does not specify a fixed amount for government spending. The impact on government spending will depend on the percentage increase chosen by the Secretary of State (or Scottish Ministers) for each benefit. A higher percentage increase will result in higher government expenditure on social security benefits.

Groups Affected

The bill affects numerous groups:

• State Pension recipients: Will experience benefit increases based on the Secretary of State's decision.
• Recipients of other social security benefits: The specific benefits affected will depend on the government’s determination.
• UK Government: Will face altered budgetary implications depending on the level of benefit increases.
• Scottish Government: Will share responsibility for benefit increases related to their devolved powers.

Powered by nyModel