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<p>The Secretary of State is bound by law to complete an annual review of benefit
and pension rates to determine whether they have retained their value in relation
to the general level of prices or - in the case of the full rate of the new State
Pension, basic State Pension and Standard Minimum Guarantee (SMG) in Pension Credit
- earnings.</p><p> </p><p>Where prices and earnings have increased relative to the
value of those benefits or pensions, the Secretary of State must increase non-contributory
benefits for additional disability needs and for carers, as well as Additional Pension,
at least in line with the increase in prices. In the case of the basic and the full
rate of the new State Pension, the triple lock guarantees that rates will be raised
by the highest of the rise in prices, the rise in earnings, or 2.5% for the duration
of this Parliament.</p><p> </p><p>The Secretary of State must also consider the rates
of other benefits including working age benefits, and may decide to increase those
at her discretion taking into account considerations such as the prevailing national
economic circumstances and Government priorities at that time. She will make her assessment
later this year and announce it ahead of the up-rating of benefits in April 2020.
From that date she is able to implement a discretionary decision since the four-year
freeze set by the Welfare Reform & Work Act 2016 will have lapsed.</p>
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