Overview

This bill amends the Social Security Administration Act 1992, allowing the government to increase certain social security benefits, including the state pension, even if earnings haven't risen. This flexibility is intended to help the government respond to economic situations.

Description

The bill focuses on the annual uprating of benefits, typically linked to earnings growth. However, this bill adds a clause (subsection 2A) allowing the Secretary of State (and the Scottish Ministers in devolved matters) to increase benefits even if earnings remain stagnant. This decision will be based on the national economic situation and other relevant factors. The Secretary of State can then present an order to Parliament outlining the percentage increase. The bill applies to England, Wales, and Scotland and comes into force upon passage.

Government Spending

The bill doesn't specify exact figures for increased government spending. The cost will depend on the percentage increase the government decides upon and the number of beneficiaries. The potential increase in spending is significant, as it affects many social security benefits, including the state pension.

Groups Affected

• Pensioners: Could receive a higher state pension if the government chooses to increase benefits.
• Benefit recipients: Those receiving various other social security benefits could also see their payments rise.
• UK Government: Will face increased expenditure if benefits are increased.
• Taxpayers: May see increased tax burden to fund the increase in benefits.

Powered by nyModel