Wealth Design News

On Friday 23 November when the proposed benefit rates and pension rates for 2019/2020 were set out in a written ministerial statement by the Minister for Family Support, Housing and Child Maintenance (Justin Tomlinson, if you cannot remember). Curiously this is not mentioned on the DWP website or included as an announcement, although it can be found by trawling through the DWP publications list.

The main numbers to note are:
  • The New State Pension (aka single tier) will rise by £4.25 a week (2.6%) to £168.60. That increase was driven by the July rise in the average earnings element of the triple lock (CPI inflation was 2.4% for the year to September and RPI inflation 3.3%).
  • The Old State Pension (aka basic) will rise by £3.25 a week (also 2.6%) to £129.20, again on the triple lock principle.
  • Additional Pension, Graduated Pension and other pension increments will rise by 2.4%, in line with CPI.
  • The main working-age benefits, such as Employment Support Allowance, Jobseeker’s Allowance, Income Support and most of Universal Credit remain frozen for the fourth (and final) year.