Parliament Pass a 1% Benefit Rise Cap – 2013/2016

Expected but still disturbing events yesterday at Parliament.
On the 8th January 2013 the government won a vote for a 1% cap on the annual rise of most working-age welfare payments and tax credits. The Bill limits rises in most working-age benefits to 1% in 2014/15 and 2015/2016 instead of linking them to inflation (the Consumer Price Index).

Based on the link to inflation policy it was expected most benefit rates would rise in April 2013 by 2.2% but a similar 1% cap could be applied to them also.

 The Benefits affected are:

•Jobseeker’s Allowance
•Employment and Support Allowance
•Income Support
•Elements of housing benefit
•Maternity allowance
•Sick Pay, Maternity Pay, Paternity Pay, Adoption Pay
•Couple and lone parent elements of working tax credits and the child element of the child tax credit

This legislation must to be approved by the Commons and the Lords to implement it for 2013-2016.

If you’ve not feathered your nest yet you’ve missed the boat as the “have nots” such as disabled people, working people and families on low income will have even less. What an absolute mess this nation is heading towards as the ramifications of welfare reforms and the economic climate begin to bite even harder.