9.7.1 Overview of Statutory Increases

What is a statutory increase

A statutory increase is the process of indexing pensions, allowances, limits and thresholds to maintain their value against increases in the cost of living and/or average earnings. Most amounts are indexed against movements in the Consumer Price Index [glossary:(:]CPI[glossary:):] while some are also benchmarked against Male Total Average Weekly Earnings [glossary:(:]MTAWE[glossary:):]. The [glossary:Pensioner and Beneficiary Living Cost Index:] (PBLCI[glossary:),:] which specifically measures the cost of living for pensioners, is also used for some amounts. Some amounts are not indexed.    

Indexed and derived amounts

Some amounts that vary at the statutory indexation dates are not indexed themselves but are derived from other amounts that are indexed.

Indexation timetable

Indexation occurs either annually or biannually, depending on the payment, allowance or limit. The indexation date and method for each payment, allowance or limit is determined by legislation.     

History of amounts

The CLIK Reference Library displays both current and historic amounts.