Overview

This bill, amending the Social Security (Up-rating of Benefits) Bill, focuses on adjusting the uprating of social security benefits to account for the exceptional impact of the COVID-19 pandemic on earnings. The amendments aim to ensure benefit increases reflect the unusual economic circumstances caused by the pandemic.

Description

The bill amends the method used to increase social security benefits annually. Specifically:

• Amendment to Up-rating Mechanism: The original bill used a standard formula based on earnings. This bill alters that formula to incorporate adjustments for the atypical economic effects of the COVID-19 pandemic.
• Data Source: The Office for National Statistics (ONS) reported earnings figures will be used to inform these pandemic-related adjustments.
• "Reasonable Adjustments": The amendments call for "reasonable adjustments" to the standard uprating formula to account for the pandemic's impact on earnings.

Government Spending

The amendments to the bill are likely to increase government spending on social security benefits. The exact amount cannot be determined without knowing the precise adjustments based on the ONS figures. However, the intent is to prevent benefits from falling disproportionately behind earnings due to pandemic-related economic volatility.

Groups Affected

The bill will affect:

• Social Security Benefit Recipients: Millions of individuals receiving various social security benefits in Great Britain will be impacted. The changes aim to ensure their benefits keep pace with earnings, even given the pandemic's influence on the economy.
• UK Government: The government's social security budget will be affected, likely increasing due to the adjustments in benefit uprating.

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