§ Malcolm BruceTo ask the Secretary of State for Work and Pensions for what reason benefits are uprated by(a) RPI and (b) the Rossi index. [97681]
§ Mr. McCartney[holding answer 13 February 2003]: The levels of all benefits and their components are reviewed annually. Contributory benefits and noncontributory benefits are uprated by the Retail Prices Index to meet the statutory requirement to increase them in relation to the general level of prices. Income-related benefits are uprated by the Rossi index which is based on the Retail Prices Index less housing costs. This index most clearly reflects the cost of living increases for recipients of income-related benefits since housing costs are separately provided for, for example by Housing Benefit for rent. Uprating benefits in line with prices maintains their value in real terms.