I am announcing the proposed social security benefit and pension rates for 2020/21.
More than 10 million people in receipt of working-age benefits will see their payments increase at the rate of inflation next year.
2.5 million people on Universal Credit and claimants on legacy benefits will receive a 1.7% rise in April. This includes people receiving Jobseeker’s Allowance (JSA), Employment and Support Allowance (ESA), Income Support, Housing Benefit and Universal Credit.
The basic and new State Pensions will increase at the highest rate for eight years, by 3.9%, boosting the retirement incomes of 13 million people. Pensioners receiving the full new State Pension will get an extra £344 a year. The basic State Pension will increase by £263 a year.
The Pension Credit standard minimum guarantee for a couple will be £265.20 a week, the basic State Pension will be £134.25 per week, the full rate of the new State Pension will be £175.20 per week, and the Universal Credit standard allowance couple one or both over 25 will be £507.37 a month.
The annual up-rating of benefits will take place for state pensions and most other benefits in the first full week of the tax year. In 2020, this will be the week beginning 6 April.
The annual up-rating process takes into account a variety of measures:
The full list of proposed benefit and pension rates will be placed in the Libraries of the House in due course.
This will increase expenditure on social security benefit and pension rates by £5 billion. This includes £3.9 billion more to be spent on pensioner benefits. From April 2020 the yearly basic State Pension will be worth over £1900 more in cash terms than in 2010. £1 billion more will also be spent on working-age benefits, ensuring that we continue to support the most vulnerable in society.