Average Earnings: Income Related Benefits
Work and Pensions
Written answers and statements, 3 November 2009
Steve Webb (Northavon, Liberal Democrat)
To ask the Secretary of State for Work and Pensions what definition of average earnings her Department uses when setting the rates of benefits that are linked to earnings; and over which 12 month period the calculation is made.
Angela Eagle (Minister of State (Pensions and the Ageing Society), Department for Work and Pensions; Wallasey, Labour)
holding answer
Where the Secretary of State reviews the amounts of earnings linked benefits, by convention, the Department uses the seasonally adjusted, three-month average earnings figure for the whole economy, including bonuses, for May to July compared with same period the previous year, as calculated by the Office for National Statistics.
The Government will inform Parliament of proposed benefit levels and tax thresholds for 2010-11 at the pre-Budget Report.