Benefit & Pension Rates Published for 2021-22

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. 

Where will it apply?

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. 

Payroll Related Rates

The new weekly rates for the 2021/22 tax year will be

Sources

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