This note sets out the main benefit and tax credit rates for the 2017/18 financial year.Jump to full report >>
Most working-age benefits will be frozen at 2015/16 cash values from 2016/17 to 2019/20 inclusive.
Over the year 2017/18, the increase in benefits aimed at disabled people and pensioners (not including the basic State Pension) will continue to be linked to CPI inflation which increased to 1.0% in 2016.
The basic State Pension will be uprated in line with the ‘triple guarantee’ (or ‘triple lock’) that was introduced in 2012/13. This ensures that it increases by the highest of the increase in earnings, price inflation (as measured by the CPI) or 2.5%. For the purposes of the 2017/18 uprating, 2.5% was the highest of these three benchmarks.
Pension Credit Guarantee Credit is required to increase at least in line with earnings; in the year 2017/18 it will rise by 2.4%.
A new single-tier State Pension has been introduced for people who reached pension age on or after 1 April 2016. This consolidates the basic State Pension and Additional Pension into one single amount. The full amount of the single tier pension was £155.65 in April 2016, but its value for individuals may be less depending on recipients’ National Insurance contributions. The new State Pension is required by statute to be uprated in line with average earnings. It is currently “tripled locked” and will be uprated by 2.5% to be £159.55 in 2017/18.
Commons Briefing papers CBP-7818
Authors: Richard Keen; Vyara Apostolova