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The Welfare Benefits Up-rating Bill implements an announcement by the Chancellor in the 2012 Autumn Statement that increases in certain working-age welfare benefits and tax credits would be limited to 1 percent, rather than increasing them in line with inflation. This Library Note is intended to provide background information in advance of the Bill’s second reading in the House of Lords on 11 February 2013. The Note examines the background context to the Bill, including the existing statutory framework for uprating social security benefits and tax credits. It describes the Bill’s provisions, and looks at which benefits are covered by the Bill, and which are not. It also presents analyses of the Bill’s likely impacts, and summarises proceedings on the Bill in the House of Commons.

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