Social Security Benefits Up-rating Order (Northern Ireland) 2024

Part of Executive Committee Business – in the Northern Ireland Assembly at 12:15 pm on 25 June 2024.

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Photo of Gordon Lyons Gordon Lyons DUP 12:15, 25 June 2024

The uprating package usually increases the rates of social security pensions, benefits and lump sum payments each year in line with inflation. Uprating occurs around the beginning of the tax year, and these two rules came into operation from April 2024. I seek the Assembly's approval for the two rules, which form the main part of the uprating package for 2024-25.

The Secretary of State for Work and Pensions is required to undertake an annual review of the rates of benefits in relation to the general level of prices. As most Members will be aware, my Department is empowered to make a corresponding order only when the Secretary of State for Work and Pensions makes an uprating order in Britain. The growth in the consumer price index (CPI) is used to determine the amount by which the various rates of benefit should be increased. That allows benefit levels to maintain their value against inflation.

The percentage increase is determined by the CPI rate in the 12 months up to the previous September. CPI indicated a positive growth of 6·7% for the period to the end of September 2023. For the 2024 uprating package, that means that benefits linked to prices have been increased by 6·7%. Those are generally benefits that contribute towards extra costs that arise as a result of disability or health conditions, notably attendance allowance, disability living allowance and personal independence payment. They also include carer's allowance and the additional state pension.

In addition to increasing certain benefits in line with the increase in prices, the commitment to the triple lock continues to apply to the basic state pension and the new state pension. Those pension payments are increased in line with the highest of the growth in earnings, the growth in prices or 2·5%. The growth in earnings is measured by the increase in average weekly earnings for the quarter ending in the previous July. The UK Government's commitment to the triple lock for the basic state pension and the new state pension means that, for 2024-25, they will be uprated by 8·5%.

Where the Secretary of State for Work and Pensions has discretion to increase other rates of benefits — for example, working-age benefits — those have traditionally been uprated by the growth in prices. For 2024-25, the personal standard allowances of universal credit, income support, housing benefit, jobseeker's allowance and employment and support allowance will also be uprated by 6·7%, as will income-related benefits and the savings credit maximum amount in pension credit, along with statutory payments such as statutory sick pay. The standard minimum guarantee in pension credit will increase by 8·5% in line with the state pension.

As I stated, when the Secretary of State for Work and Pensions makes an uprating order in Britain, my Department is empowered to make a corresponding order for Northern Ireland. My Department has no power to increase the amounts of benefit by a different or greater amount than that in the annual uprating order. The uprating order is the main statutory rule to provide for the increase in benefit rates. However, some technical provisions in relation to the annual uprating are required to be made by regulations and therefore cannot be included in that order.

This debate also encompasses the Social Security Benefits Up-rating Regulations (Northern Ireland) 2024, which make the technical provisions required for the accurate implementation of the increased rates. The regulations are made as a consequence of the uprating order. They also include an increase to the personal expenses allowance for residents in care homes and the earnings limit in relation to carer's allowance.

As a result of the 2024 uprating package, approximately £703 million more will be paid out by my Department to people in Northern Ireland on benefits and pensions. I understand that we might like to do more for the recipients of social security benefits and pensions, especially during the cost-of-living crisis in which we find ourselves. As I said, however, in relation to the annual uprating order, we have the power only to make a provision corresponding to the one made in Britain. I therefore welcome Members' support for the uprating order and the consequential uprating regulations, so that people in Northern Ireland can continue to receive the increased rates.