State pension UK: Payments cannot be boosted if you claim certain benefits – full list | Personal Finance | Finance


Retirees to struggle

Thérèse Coffey, the Secretary of State at the DWP, confirmed state pensions will be increasing by 3.1 percent in a statement made to Parliament in late November.

She said: “The Consumer Price Index (CPI) for the relevant reference period (the year to September 2021) was 3.1 percent, and I can confirm that benefits will increase in line with that. This is consistent with the use of this index since 2011. The weekly earnings limit in Carer’s Allowance will also be increased by 3.1 percent.

“In line with the Social Security (Up-rating of Benefits) Act 2021, state pension rates will rise in line with CPI of 3.1 percent.

“I also confirm that the local housing allowance rates for 2022/23 will be maintained at the elevated cash rates agreed for 2020/21. The Office for Budget Responsibility made this assumption too in its expenditure forecast.”

While the increase will be somewhat welcomed by pensioners who have faced a difficult 18 months, Kayley Hignell, the Head of Policy (Families Welfare and Work) at Citizens Advice, warned retirees will still struggle as 2022 kicks off.

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