Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what assessment she has made of the adequacy of the 1.7% increase in benefits that are linked to inflation from April 2025 for disabled people receiving a state pension.
Attendance Allowance (which provides support for pensioners with care needs) has been consistently uprated in line with inflation since it was introduced and will be increased by 1.7% from April 2025. This means that the higher rate of Attendance Allowance will be £110.40 per week, and the lower rate £73.90 per week in 2025/26. Expenditure on Attendance Allowance was around £6.9 billion (real terms) in 2023/24 and is forecast to increase to £7.7 billion in 2024/25, before rising to £8.6 billion by 2029/30. Extra-costs disability benefits such as Personal Independence Payment and Disability Living Allowance, which may also be paid to people over state pension age, will also be increased by 1.7% from 7 April 2025.
In addition to this, over 12 million pensioners will see their basic or new State Pension increase by 4.1% in April 2025, worth up to £470 a year. Our commitment to protect the Triple Lock on the new and basic State Pensions means that, over the course of this Parliament (up to and including 2029/30), the OBR forecasts that Government spending on the State Pension will rise by over £31 billion.
We are also increasing the standard minimum guarantee in Pension Credit by 4.1%. Pension Credit provides extra money to help with living costs for people over State Pension age and on a low income and includes additional amounts for those with a severe disability, caring responsibilities, responsibility for a child, or certain housing costs. Extra-costs disability benefits can also give rise to a disability addition in Pension Credit, meaning that disabled pensioners are more likely to be entitled to Pension Credit, and at a higher amount, than those without disabilities.