On 25 November 2020 Secretary of State for Work and Pensions Dr Therese Coffey made a written statement regarding the annual review of benefit and State Pension rates. The new rates apply to the 2021/22 tax year and will come into effect in April 2021.
It was confirmed that payroll related benefits would increase in line with the Consumer Price Index which was 0.5% in the relevant reference period.
The announced increases are made via the The Social Security (Up-rating of Benefits) Act 2020 which applies in Great Britain (England, Wales & Scotland) only.
Northern Ireland is expected to mirror the increases. The Department for Communities the power to do this under the Social Security Administration (Northern Ireland) Act 1992 with the Northern Ireland Executive making a corresponding order under this existing power.
The new weekly rates for the 2021/22 tax year will be
Payment Type | 2020/21 rate | 2021/22 rate |
Statutory Adoption Pay | £151.20 | £151.97 |
Statutory Maternity Pay | £151.20 | £151.97 |
Statutory Paternity Pay | £151.20 | £151.97 |
Statutory Shared Parental Pay | £151.20 | £151.97 |
Statutory Parental Bereavement Pay | £151.20 | £151.97 |
Statutory Sick Pay | £95.85 | £96.35 |
Written Statement – https://questions-statements.parliament.uk/written-statements/detail/2020-11-25/hcws600
Benefit and Pension Rates – https://www.gov.uk/government/publications/benefit-and-pension-rates-2021-to-2022
The Social Security (Up-rating of Benefits) Act 2020 – https://www.legislation.gov.uk/ukpga/2020/23/contents/enacted/data.htm
Two announcements from the Chancellor of The Exchequer today. Furlough extended to end of April 2021 and Budget date set for 3 March 2021
The proposed benefit and pension rates for 2021-22 have been published by the Department for Work and Pensions
