Social Security (Up-rating of Benefits) Bill — Second Reading — 20 Sep 2021 at 18:55
The majority of MPs voted to increase state pensions and related benefits by the general level of prices and at least by 2.5% for the 2022-23 tax year.
MPs were considering the Social Security (Up-rating of Benefits) Bill.[1][2][3]
The motion supported by a majority of MPs in this vote was:
- That the Bill be now read a Second time.
Support for the motion enabled the Bill to continue on its path to becoming law.
The Bill[2][3] provides for the basic State Pension, the full rate of the new State Pension, the Standard Minimum Guarantee in Pension Credit and survivors’ benefits in Industrial Death Benefit to be increased by the general level of prices and at least by 2.5% for the 2022-23 tax year.
The Bill's key operative provision amended Section 150A of the Social Security Administration Act 1992[4]. Prior to the Bill subsection two of that provision stated:
- (2)Where it appears to the Secretary of State that the general level of earnings is greater at the end of the period under review than it was at the beginning of that period, he shall lay before Parliament the draft of an order which increases each of the amounts referred to in subsection (1) above by a percentage not less than the percentage by which the general level of earnings is greater at the end of the period than it was at the beginning.
The Bill provided for amending "earnings" to "prices" and introducing a further subclause including:
- the Secretary of State must lay before Parliament the draft of an order which increases each of the amounts referred to in subsection (1) above by a percentage not less than 2.5%.
The explanatory notes to the Bill[3]stated:
- An assessment by Department for Work and Pensions analysts suggests that earnings growth will be between 8% and 8.5% for the period May to July which is the reference period used for up-rating. The exceptionally high growth figure is inflated by the negative growth in earnings last year and the unusual employment market flows during the pandemic.
The Bill sought to prevent the state pension increasing in-line with the "exceptionally high" earnings growth figure.
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- [1] Parliament's webpage on the Social Security (Up-rating of Benefits) Bill, Parliament.uk
- [2] Social Security (Up-rating of Benefits) Bill, as introduced on 21 September 2021, Parliament.uk
- [3] Explanatory notes to the Social Security (Up-rating of Benefits) Bill, as introduced on 21 September 2021, Parliament.uk
- [4] Section 150A of the Social Security Administration Act 1992 as of 23 November 2020, Legislation.gov.uk
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