Ministers laid the Welfare Benefits Up-Rating Bill before Parliament, which enabled a time limited 1% increase to many working age benefits and tax credits for 2014-15 and 2015-16.

As announced in the Autumn Statement, the Government wants to ensure that the welfare system remains sustainable over the longer term and the budget is managed appropriately whilst continuing to provide support for those who cannot expect to move into work.

Benefits for carers and disability benefits such as Attendance Allowance, the disability elements of tax credits, Disability Living Allowance and the Support Component of Employment and Support Allowance will continue to be up-rated in line with price inflation, whilst the Basic State Pension is protected by the triple lock guarantee.

Minister for Pensions Steve Webb said:

“In difficult economic times we’ve protected the incomes of pensioners and disabled people who have little means to increase their income. We have also committed to helping people who rely on working age benefits and tax credits and will increase that support by 1%. By raising the Personal Allowance threshold we’ve lifted over 2 million low earners out of tax altogether.”

The changes in the Bill will generate total savings of £1.9bn by 2015-16. The Bill will seek to introduce new provisions that will be time limited.