House of Commons Library

2019 Benefits Uprating

Published Friday, March 1, 2019

2019/20 is the final year of the four-year freeze, which keeps most working-age benefits and tax credits at their 2015/16 cash values. Non-frozen benefits, mainly those aimed at disabled people and carers, rise in line with CPI inflation (+2.4%). The triple lock delivers a 2.6% increase to the new State Pension (£168.60 in 2019/20) and the Basic State Pension (£129.20).

Jump to full report >>

This note sets out the main benefit and tax credit rates for the 2019/20 financial year.

For the fourth year in a row, most working-age benefits are being kept at their 2015/16 cash value. This is the final year of the four-year benefit freeze announced at Summer Budget 2015.

Increases in benefits aimed specifically at disabled people and carers will continue to be linked to CPI inflation, resulting in a 2.4% increase in 2019/20.

The Basic and New State Pensions will be uprated in line with the triple lock that was introduced in 2012/13, i.e. by the highest of the increase in earnings, price inflation (as measured by the CPI) or 2.5%. For the purposes of the 2019/20 uprating, earnings growth (+2.6%) was the highest of these three benchmarks, meaning that:

  • the New State Pension (for those reaching State Pension age on or after 6 April 2016) will be £168.60 per week in 2019/20 (up from £164.35 in 2018/19)
  • the Basic State Pension (the core amount in the old State Pension system) will be £129.20 per week in 2019/20 (up from £125.95 in 2018/19).

Pension Credit Guarantee Credit is required to increase at least in line with earnings; in 2019/20 it will also rise by 2.6%.

Work Allowances in Universal Credit (the earnings threshold above which Universal Credit awards begin to be tapered down) are receiving an extra £1,000 increase (on top of normal CPI uprating). This was announced at Budget 2018.

Commons Briefing papers CBP-8458

Author: Roderick McInnes

Topics: Benefits policy, Family benefits, Housing benefits, Pensions, Sickness, disability and carers' benefits, Working age benefits

Share this page

Stay up to date

  • Subscribe to RSS feed Subscribe to Email alerts Commons Briefing papers

House of Commons Library

The House of Commons Library provides research, analysis and information services for MPs and their staff.