Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, whether the annual review of benefits will take into account the real term reduction in benefits claimants’ incomes since April 2022 due to the gap between the rate at which benefits are paid and the accelerating rate of inflation.

CPI has been the default inflation measure for the Secretary or State’s statutory annual review of benefit rates since 2011. The relevant index for 2022 was 10.1%. This is the latest available figure confirmed by the Office for National Statistics prior to the annual review and allows sufficient time for the complex delivery process to take place.

Using the same benchmark every year ensures consistency over time, allowing Up-rating to balance out over a number of years.

The Government understands the pressures people are facing with the cost of living, which is why, in addition to the £37 billion of support we have provided for cost-of-living pressures in 2022/23, we are acting now to ensure support continues throughout 2023/24.

To ensure stability and certainty for households, in the Autumn Statement the Government has announced £26 billion in cost-of-living support for 2023/24. In 2023/24, households on eligible means-tested benefits will get up to a further £900 in Cost-of-Living Payments. A £300 payment will be made to pensioner households and individuals in receipt of eligible disability benefits will receive a £150 payment. Also included is the amended Energy Price Guarantee which will save the average UK household £500 in 2023/24 and raising the benefit cap by 10.1% in line with inflation.