Welfare Benefits Up-rating Bill — Second Reading — Capping Increase of Specified Benefits at 1% — 8 Jan 2013 at 18:50

The majority of MPs voted to cap any increase discretionary working age benefits and tax credits at 1% in 2014-15 and 2015-16

The explanatory notes to the bill^[2] state its purpose was to implement a decision announced in the Autumn Statement:

• In the Autumn Statement, it was announced that in light of the national economic situation, certain working-age social security benefits and payments, and certain elements of tax credits, would be up-rated by 1 per cent, rather than prices (as measured by the Consumer Prices Index (‘CPI’), 2.2 per cent), for the tax year 2013-14.

The vote was on the second reading of the Welfare Benefits Up-rating Bill; the majority of MPs voted in favour, supporting the basic principles of the bill and allowing it to progress towards becoming law.

Minister Iain Duncan Smith summarised the effect of the bill saying:^[2]

• The Bill provides that discretionary working age benefits and tax credits will be uprated by 1% for a further two years in the tax years 2014-15 and 2015-16, if prices have risen by at least 1%. The schedule to the Bill sets out the benefit payments and tax credits

The explanatory notes to the bill^[2] list the working-age social security benefits and payments in question as:

• The main rates of Income Support, Jobseeker’s Allowance, Employment and Support Allowance and Housing Benefit; and the work-related activity group component of Employment and Support Allowance;
• Maternity Allowance; and Statutory Adoption, Maternity, Paternity and Sick Pay.

An amendment was proposed suggesting MPs decline a second reading; this was subject of a separate vote.

• [1] Welfare Benefits Up-rating Act 2013 - Explanatory Notes
• [2] Iain Duncan Smith MP (Chingford and Woodford Green, Conservative) House of Commons, 8 January 2013

Debate in Parliament | Source |