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Inflationary Increases to Allowances

The minimum income guarantee (MIG), which provides a floor below which a person’s income must not fall as a result of charges for community-based care, will rise by 6.7%.


There will also be a 6.7% increase to the personal expenses allowance (PEA), the minimum sum funded care home residents must be left with after charging, which will rise from £28.25 to £30.15 a week.


An inflationary increase will also be applied to the savings credit disregard, an extra sum eligible pensioners are allowed to keep above the MIG or PEA. This will rise from £6.50 to £6.95 per week for individuals and from £9.75 to £10.40 for couples.


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