Finance Bill

When someone receives an RPI-linked increase—or a CPI-linked increase, as it will become—it will include an element related to the increase in VAT, but the rest of the calculation for the CPI-linked adjustment will relate to all the other inflationary pressures that make up that figure. Is the hon. Gentleman really saying that if people in receipt of disability living allowance have to purchase major items of equipment on which VAT has increased by 2.5%, the increase in their allowances will compensate for that?