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| Version 3 | Version 4 |
|---|---|
| Benefits: Who gets them and how much do they cost? | Benefits: Who gets them and how much do they cost? |
| (3 months later) | |
| Benefits will increase in line with inflation next year, Chancellor Jeremy Hunt has announced. | Benefits will increase in line with inflation next year, Chancellor Jeremy Hunt has announced. |
| The decision means claimants will see payments rise by 10.1% from April. | The decision means claimants will see payments rise by 10.1% from April. |
| How much will benefits increase? | How much will benefits increase? |
| Most working-age benefits increase every April, in line with the previous September's CPI inflation rate. This was 10.1% in September 2022. | Most working-age benefits increase every April, in line with the previous September's CPI inflation rate. This was 10.1% in September 2022. |
| Mr Hunt confirmed this will happen in April 2023, despite the pressure on the government's finances. | Mr Hunt confirmed this will happen in April 2023, despite the pressure on the government's finances. |
| The government says the decision will cost £11bn. This includes increasing the state pension by inflation as well, as part of the so-called triple lock. | The government says the decision will cost £11bn. This includes increasing the state pension by inflation as well, as part of the so-called triple lock. |
| Benefits are fully devolved in Northern Ireland, which means any rises are up to the executive. | Benefits are fully devolved in Northern Ireland, which means any rises are up to the executive. |
| In Scotland some disability benefits are devolved, meaning the Scottish government decides how to increase them. | In Scotland some disability benefits are devolved, meaning the Scottish government decides how to increase them. |
| How much is spent on benefits? | How much is spent on benefits? |
| In February 2022, 22 million people were claiming some form of benefits, in England, Scotland and Wales. | In February 2022, 22 million people were claiming some form of benefits, in England, Scotland and Wales. |
| In 2019-20, the year before the Covid pandemic, the government spent about £122bn on benefits. | In 2019-20, the year before the Covid pandemic, the government spent about £122bn on benefits. |
| In the same year, £99bn was spent on the state pension. | In the same year, £99bn was spent on the state pension. |
| By comparison, the government spends almost £200bn per year on health and social care in the UK. | By comparison, the government spends almost £200bn per year on health and social care in the UK. |
| Universal credit | Universal credit |
| After the state pension, universal credit (UC) was the government's joint-highest benefit spend in 2019-20, costing £18.4bn. | After the state pension, universal credit (UC) was the government's joint-highest benefit spend in 2019-20, costing £18.4bn. |
| In July 2022, 5.7 million people were claiming it, about 41% of whom have jobs. | In July 2022, 5.7 million people were claiming it, about 41% of whom have jobs. |
| UC is a monthly payment to help with living costs. It was introduced to replace a number of existing benefits, including: | UC is a monthly payment to help with living costs. It was introduced to replace a number of existing benefits, including: |
| child tax credit | child tax credit |
| housing benefit | housing benefit |
| income support | income support |
| income-based jobseeker's allowance | income-based jobseeker's allowance |
| During the Covid pandemic, UC claimants received a temporary £20-a-week increase. | During the Covid pandemic, UC claimants received a temporary £20-a-week increase. |
| What is universal credit and who qualifies for it? | What is universal credit and who qualifies for it? |
| Housing benefit | Housing benefit |
| In 2019-20, £18.4bn was also spent on housing benefit, which helps people pay their rent. | In 2019-20, £18.4bn was also spent on housing benefit, which helps people pay their rent. |
| In May 2022, there were 1.5 million working-age recipients and 1.1 million of pension age. | In May 2022, there were 1.5 million working-age recipients and 1.1 million of pension age. |
| Housing benefit is gradually being replaced by UC. | Housing benefit is gradually being replaced by UC. |
| Disability benefits | Disability benefits |
| The main benefits for disabled people are: | The main benefits for disabled people are: |
| employment and support allowance (ESA), which helps with living costs (£13.9bn) | employment and support allowance (ESA), which helps with living costs (£13.9bn) |
| personal independence payment (PIP), which helps with daily living costs and getting around (12.5bn) | personal independence payment (PIP), which helps with daily living costs and getting around (12.5bn) |
| disability living allowance (DLA), which is in the process of being replaced, by PIP in England and Wales and adult disability payment in Scotland (£7.2bn) | disability living allowance (DLA), which is in the process of being replaced, by PIP in England and Wales and adult disability payment in Scotland (£7.2bn) |
| attendance allowance which helps with extra costs to cover carers (£5.9bn) | attendance allowance which helps with extra costs to cover carers (£5.9bn) |
| In February 2022 there were: | In February 2022 there were: |
| 1.7 million people claiming ESA | 1.7 million people claiming ESA |
| 3.8 million people claiming either PIP or DLA | 3.8 million people claiming either PIP or DLA |
| 1.5 million attendance allowance claimants | 1.5 million attendance allowance claimants |
| Child benefit | Child benefit |
| The government spent £11.1bn on child benefit in 2019-20. | The government spent £11.1bn on child benefit in 2019-20. |
| Since 2013, claimants earning more than £50,000 gradually have the benefit reduced the more they earn. | Since 2013, claimants earning more than £50,000 gradually have the benefit reduced the more they earn. |
| At £60,000 and above, child benefit is fully withdrawn. | At £60,000 and above, child benefit is fully withdrawn. |
| And that figure has not been adjusted to reflect rising prices since then, meaning it now affects many more people. | And that figure has not been adjusted to reflect rising prices since then, meaning it now affects many more people. |
| In August 2021, 7.1 million families were receiving child benefit. | In August 2021, 7.1 million families were receiving child benefit. |
| Personal tax credits | Personal tax credits |
| Child tax credit and working tax credit are being replaced by UC. | Child tax credit and working tax credit are being replaced by UC. |
| In 2019-20, the government spent £17bn on them but that is expected to fall to £7.5bn this year. | In 2019-20, the government spent £17bn on them but that is expected to fall to £7.5bn this year. |
| Pension Credit | Pension Credit |
| Separate from the state pension, pension credit helps people over state-pension age with low incomes with living costs, at a cost of £5bn in 2019-20. | Separate from the state pension, pension credit helps people over state-pension age with low incomes with living costs, at a cost of £5bn in 2019-20. |
| More than 1.4 million people currently receive pension credit, although the government says there are significantly more eligible pensioners who do not claim. | More than 1.4 million people currently receive pension credit, although the government says there are significantly more eligible pensioners who do not claim. |
| How does UK benefit spending compare with other countries? | How does UK benefit spending compare with other countries? |
| The UK spends 3.9% of gross domestic product (GDP) - the total value of goods and services produced in the country - on working-age benefits, according to the latest data from the Organisation for Economic Co-operation and Development (OECD) | The UK spends 3.9% of gross domestic product (GDP) - the total value of goods and services produced in the country - on working-age benefits, according to the latest data from the Organisation for Economic Co-operation and Development (OECD) |
| In a number of European countries, this proportion is higher. | In a number of European countries, this proportion is higher. |
| Belgium tops the OECD list, at 6.4%, followed by Norway and Finland. | Belgium tops the OECD list, at 6.4%, followed by Norway and Finland. |
| "The UK has one of the least generous out-of-work benefits systems for workers on average earnings in the OECD," the Institute for Fiscal Studies says. | "The UK has one of the least generous out-of-work benefits systems for workers on average earnings in the OECD," the Institute for Fiscal Studies says. |
| Related Topics | |
| Autumn Statement | |
| Inflation | |
| Cost of living | |
| Universal Credit | |
| Jeremy Hunt |