Downloads
bn120.pdf
PDF | 997.27 KB
The inflation figures for September 2011 released this week by the Office for National Statistics (ONS) are important, because they affect how the tax and benefit system will look in 2012-13. Most parameters of the personal tax and benefit system - such as income tax thresholds and benefit amounts - and public sector pensions are typically increased each April in line with the rate of annual inflation measured in the previous September .
These indexation policies matter a lot. They affect changes in indexed parameters every year, so the effects of indexation policy accumulate over time, and their impacts on the levels of (for example) benefits can soon become very large.
Authors
Deputy Director
Robert is a Deputy Director. His work focuses on primarily on the labour market, income and wealth inequality, and the design of the welfare system.
Associate Director
Peter joined in 2009. He has published several papers on the microeconomics of household spending and labour supply decisions over the life-cycle.
Report details
- DOI
- 10.1920/bn.ifs.2011.00120
- Publisher
- IFS
Suggested citation
Joyce, R and Levell, P. (2011). The impact in 2012-13 of the change to indexation policy. London: IFS. Available at: https://ifs.org.uk/publications/impact-2012-13-change-indexation-policy (accessed: 20 April 2024).
More from IFS
Understand this issue
Sure Start achieved its aims, then we threw it away
15 April 2024
Spring Budget 2024: What you need to know
7 March 2024
Should we worry about government debt?
11 April 2024
Policy analysis
Recent trends in and the outlook for health-related benefits
19 April 2024
4.2 million working-age people now claiming health-related benefits, could rise by 30% by the end of the decade
19 April 2024
Oil and gas make Scotland’s underlying public finances particularly volatile and uncertain
27 March 2024
Academic research
Labour market inequality and the changing life cycle profile of male and female wages
15 April 2024
The menopause "penalty"
18 March 2024
There and back again: women’s marginal commuting costs
2 April 2024