Budget 2011 State Pension and Benefits

Budget 2011 State Pension and Benefits.

State Pension 2011

• £102.15 per week for a single person
• £163.35 per week for a married couple/civil partners.
• Guarantee to increase the higher of 2.5%, CPI Inflation or National Average Earnings
• New Flat rate pension proposed at £140 per week but we will lose State Second Pension ...  any previous contracted out S2P rights or SERPS rights accrued will result in a lower State Pension.

Pension Credit 2011

Minimum (Income) Guarantee £137.35 per week for a single person and £209.70 per week for a married couple/civil partners.
Savings Credit Element frozen from 2012 until 2016 as £20.52 per week or a single person and £27.09 per week for couples.

Child Tax Credit 2011

• Increases now on by Consumer Prices Index rather than RPI in line with all other benefits.
• Family element kept at £545 per year.  New Baby "Double Benefit" removed.
• Child element increases by £255 to £2,555 per year per child
• Disabled child element increases by £85 to £2,800 per year
• Severely disabled child element increases by £35 to £1,130 per year

Working Tax Credit 2011

• Increases now on by Consumer Prices Index rather than RPI in line with all other benefits.
• Basic element kept at £1,920 per year
• Couple and lone parent element increased by £60 to £1,950 per year
• 30 hour element  kept at £790 per year, Disabled Worker Element increased by £80 to £2,650 per year and severe disability element increases by £35 to £1,130 per year
• Some of other elements such as the 50+ return to work element will stop in 2012 but people over 60 will still qualify if they work 16 hours per week or more
• Childcare element of working tax credit has elgible costs reduced by 10% to 70% cost covered with maximum eligible cost at £175 per week for one child and £300 per week in total for 2 or more children
  

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