Social Security Contributions and Benefits Act 1992

Preliminary E+W+S

20 Descriptions of contributory benefits. E+W+S

(1) Contributory benefits under this Part of this Act are of the following descriptions, namely—

F1 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F2 (b) incapacity benefit, comprising—

(i) short-term incapacity benefit, and

(ii) long-term incapacity benefit;]

(d) maternity allowance F3 ... ;

(e) widow’s benefit, comprising—

F4 (i) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(ii) widowed mother’s allowance F5 ... ;

(iii) widow’s pension;

[F6 (ea) widowed parent's allowance;]

(f) retirement pensions of the following categories—

(i) Category A, payable to a person by virtue of his own contributions (with increase for adult F7 ... dependants); and

[F8 (ii) Category B, payable to a person by virtue of the contributions of a spouse F5 ... [F9 or civil partner]]

[F10 (fa) shared additional pensions;]

(g) for existing beneficiaries only, child’s special allowance.

(2) In this Act—

• “long-term benefit” means—

  (a)

  [F11 long-term incapacity benefit;]

  (b)

  a widowed mother’s allowance;

  (ba)

  [F12 a widowed parent’s allowance;]

  (bb)

  F13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

  (c)

  a widow’s pension; and

  (d)

  a Category A or Category B retirement pension

  (e)

  [F14 a shared additional pension;]; and

• “short-term benefit” means—

  (a)

  F15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

  (b)

  [F16 short-term incapacity benefit; and]

  (c)

  maternity allowance.

(3) The provisions of this Part of this Act are subject to the provisions of [F17 Chapter II of Part III of the Pensions Act [F18 (reduction in benefits for members of schemes that were contracted-out)]].

Textual Amendments

F1 S. 20(1)(a) repealed (7.10.1996) by Jobseekers Act 1995 (c. 18), s. 41(2), Sch. 3; S.I. 1996/2208, art. 2(b)

F2 S. 20(1)(b) substituted for s. 20(1)(b)(c) (13.4.1995) by Social Security (Incapacity for Work) Act 1994 (c. 18), s. 16(3), Sch. 1 para. 2(2); S.I. 1994/2926, art. 2(4), Sch. Pt. 4

F3 Words in s. 20(1)(d) repealed (6.4.2010) by Welfare Reform Act 2009 (c. 24), ss. 58(2)(a), 61(2), Sch. 7 Pt. 2

F4 S. 20(1)(e)(i) repealed (24.4.2000 for specified purposes, 9.4.2001 in so far as not already in force) by Welfare Reform and Pensions Act 1999 (c. 30), s. 89(1), Sch. 8 para. 3(2)(a), Sch. 13 Pt. 5; S.I. 2000/1047, art. 2(2)(a), Sch. Pt. I

F5 Words in s. 20(1) repealed with savings (6.4.2003) by Tax Credits Act 2002 (c. 21), s. 61, Sch. 6; S.I. 2003/938, art. 2, Sch. (with art. 3)

F6 S. 20(1)(ea) substituted (6.4.2017) by Pensions Act 2014 (c. 19), s. 56(1), Sch. 16 para. 3(2); S.I. 2017/297, art. 3(2) (with arts. 4, 5)

F7 Words in s. 20(1)(f)(i) repealed with savings (6.4.2003) by Tax Credits Act 2002 (c. 21), s. 61, Sch. 6; S.I. 2003/938, art. 2, Sch. (with art. 3)

F8 S. 20(1)(f)(ii) substituted (19.7.1995) by Pensions Act 1995 (c. 26), s. 180(2)(a), Sch. 4 para. 21(1)

F9 Words in s. 20(1)(f)(ii) inserted (5.12.2005) by Civil Partnership Act 2004 (c. 33), s. 263(8)(d), Sch. 24 para. 13; S.I. 2005/3175, art. 2(1), Sch. 1

F10 S. 20(1)(fa) inserted (1.12.2000) by Welfare Reform and Pensions Act 1999 (c. 30), s. 89(1), Sch. 12 para. 15(2); S.I. 2000/1047, art. 2(2)(d), Sch. Pt. 4

F11 Words in s. 20(2) substituted (13.4 1995) by Social Security (Incapacity for Work) Act 1994 (c. 18), s. 16(3), Sch. 1 para. 2(3)(a); S.I. 1994/2926, art. 2(4), Sch. Pt. 4

F12 Words in s. 20(2) inserted (24.4.2000 for specified purposes, 9.4.2001 in so far as not already in force) by Welfare Reform and Pensions Act 1999 (c. 30), s. 89(1), Sch. 8 para. 3(3); S.I. 2000/1047, art. 2(2)(a), Sch. Pt. I

F13 Words in s. 20(2) omitted (6.4.2017) by virtue of Pensions Act 2014 (c. 19), s. 56(1), Sch. 16 para. 3(3); S.I. 2017/297, art. 3(2) (with arts. 4, 5)

F14 Words in s. 20(2) inserted (1.12.2000) by Welfare Reform and Pensions Act 1999 (c. 30), s. 89(1), Sch. 12 para. 15(3); S.I. 2000/1047, art. 2(2)(d), Sch. Pt. 4

F15 Words in s. 20(2) repealed (7.10.1996) by Jobseekers Act 1995 (c. 18), s. 41(2), Sch. 3; S.I. 1996/2208, art. 2(b)

F16 Words in s. 20(2) substituted (13.4 1995) by Social Security (Incapacity for Work) Act 1994 (c. 18), s. 16(3), Sch. 1 para. 2(3)(b); S.I. 1994/2926, art. 2(4), Sch. Pt. 4

F17 Words in s. 20(3) substituted (7.2.1994) by Pension Schemes Act 1993 (c. 48), s. 193(2), Sch. 8 para. 35 (with s. 189. Schs. 6, 9); S.I. 1994/86

F18 Words in s. 20(3) substituted (6.4.2016) by Pensions Act 2014 (c. 19), s. 56(4), Sch. 13 para. 53

21 Contribution conditions. E+W+S

(1) Entitlement to any of the benefits specified in section 20(1) above, [F19 other than [F20 short-term incapacity benefit under subsection (1)(b) of section 30A below,] long-term incapacity benefit under [F20 subsection (5) of that section] [F21 , maternity allowance under section 35 [F22 or 35B] below] or short-term or long-term incapacity benefit under section 40 or 41 below] [F23 or a shared additional pension under section 55A [F24 or 55AA] below], depends on contribution conditions being satisfied (either by the claimant or by some other person, according to the particular benefit).

(2) The class or classes of contribution which, for the purposes of subsection (1) above, are relevant in relation to each of those benefits are as follows—

Short-term benefit

F25 . . .	F25 . . .
[F26 Short-term incapacity benefit under section [F27 30A(1)(a)] below]	Class 1 or 2
F28 . . .	F28 . . .

Other benefits

F29 . . .	F29 . . .
Widowed mother’s allowance	Class 1, 2 or 3
[F30 Widowed parent’s allowance	Class 1, 2 or 3]
F29 . . .	F29 . . .
Widow’s pension	Class 1, 2 or 3
Category A retirement pension	Class 1, 2 or 3
Category B retirement pension	Class 1, 2 or 3
Child’s special allowance	Class 1, 2 or 3

(3) The relevant contribution conditions in relation to the benefits specified in subsection (2) above are those specified in Part I of Schedule 3 to this Act.

F31 (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) In subsection (4) above and Schedule 3 to this Act—

(a) “the contributor concerned”, for the purposes of any contribution condition, means the person by whom the condition is to be satisfied;

(b) “a relevant class”, in relation to any benefit, means a class of contributions specified in relation to that benefit in subsection (2) above;

(c) “the earnings factor”—

(i) where the year in question is 1987-88 or any subsequent tax year, means, in relation to a person, the aggregate of his earnings factors derived from [F32 so much of his earnings as did not exceed the upper earnings limit and] upon which primary Class 1 contributions have been paid or treated as paid and from his Class 2 and Class 3 contributions; and

(ii) where the year in question is any earlier tax year, means, in relation to a person’s contributions of any class or classes, the aggregate of his earnings factors derived from all those contributions;

(d) except in the expression “benefit year”, “year” means a tax year.

[F33 (5A) Where primary Class 1 contributions have been paid or treated as paid on any part of a person’s earnings, the following provisions, namely—

(a) subsection (5)(c) above;

(b) sections 22(1)(a) [F34 , (2A)] and (3)(a), 23(3)(a), 24(2)(a), [F35 44(6)(za) and (a)] F36 ... below; and

(c) paragraphs 2(4)(a) and (5)(a), 4(2)(a), 5(2)(b) and (4)(a) [F37 , 5A(3)(a)] and 7(4)(a) of Schedule 3 to this Act,

shall have effect as if such contributions had been paid or treated as paid on so much of the earnings as did not exceed the upper earnings limit.]

(6) In this Part of this Act “benefit year” means a period—

(a) beginning with the first Sunday in January in any calendar year, and

(b) ending with the Saturday immediately preceding the first Sunday in January in the following calendar year;

but for any prescribed purposes of this Part of this Act “benefit year” may by regulations be made to mean such other period (whether or not a period of 12 months) as may be specified in the regulations.

Textual Amendments

F19 Words in s. 21(1) substituted (13.4.1995) by Social Security (Incapacity for Work) Act 1994 (c. 18), s. 16(3), Sch. 1 para. 3(2); S.I. 1994/2926, art. 2(4), Sch. Pt. 4

F20 Words in s. 21(1) inserted (3.11.2000 for specified purposes, 6.4.2001 in so far as not already in force) by Welfare Reform and Pensions Act 1999 (c. 30), s. 89(1), Sch. 8 para. 21(a); S.I. 2000/2958, art. 2(3)(e)(4)(5)

F21 Words in s. 21(1) inserted (12.1.2000 for specified purposes, 2.4.2000 for all other purposes) by Welfare Reform and Pensions Act 1999 (c. 30), s. 89(1), Sch. 8 para. 31(2); S.I. 1999/3309, art. 2(1)(b)

F22 Words in s. 21(1) inserted (with application in accordance with reg. 1(3) of the amending S.I.) by The Social Security (Maternity Allowance) (Participating Wife or Civil Partner of Self-employed Earner) Regulations 2014 (S.I. 2014/606), regs. 1(2), 2(2)

F23 Words in s. 21(1) inserted (1.12.2000) by Welfare Reform and Pensions Act 1999 (c. 30), s. 89(1), Sch. 12 para. 16; S.I. 2000/1047, art. 2(2)(d), Sch. Pt. IV

F24 Words in s. 21(1) inserted (6.4.2016) by Pensions Act 2014 (c. 19), s. 56(4), Sch. 11 para. 3

F25 Words in s. 21(2) table omitted (7.10.1996) by virtue of Jobseekers Act 1995 (c. 18), s. 41(2), Sch. 3; S.I. 1996/2208, art. 2(b)

F26 Words in s. 21(2) table substituted (13.4.1995) by Social Security (Incapacity for Work) Act 1994 (c. 18), s. 16(3), Sch. 1 para. 3(3); S.I. 1994/2926, art. 2(4), Sch. Pt. 4

F27 Words in s. 21(1) substituted (3.11.2000 for specified purposes, 6.4.2001 in so far as not already in force) by Welfare Reform and Pensions Act 1999 (c. 30), s. 89(1), Sch. 8 para. 21(b); S.I. 2000/2958, art. 2(3)(e)(4)(5)

F28 Words in s. 21(2) repealed (12.1.2000 for specified purposes, 2.4.2000 for all other purposes) by Welfare Reform and Pensions Act 1999 (c. 30), s. 89(1), Sch. 8 para. 31(3), Sch. 13 Pt. V; S.I. 1999/3309, art. 2(1)(b)(c)

F29 Words in s. 21(2) table omitted (6.4.2017) by virtue of Pensions Act 2014 (c. 19), s. 56(1), Sch. 16 para. 4(2); S.I. 2017/297, art. 3(2) (with arts. 4, 5)

F30 Words in s. 21(2) inserted (24.4.2000 for specified purposes, 9.4.2001 in so far as not already in force) by Welfare Reform and Pensions Act 1999 (c. 30), s. 89(1), Sch. 8 para. 4(2)(b); S.I. 2000/1047, art. 2(2)(a), Sch. Pt. I

F31 S. 21(4) omitted (6.4.2017) by virtue of Pensions Act 2014 (c. 19), s. 56(1), Sch. 16 para. 4(3); S.I. 2017/297, art. 3(2) (with arts. 4, 5)

F32 Words in s. 21(5)(c)(i) substituted (with effect in relation to the tax year 2003-04 and subsequent tax years) by National Insurance Contributions Act 2002 (c. 19), s. 8(2), Sch. 1 para. 6

F33 S. 21(5A) inserted (6.4.1999) by Social Security Act 1998 (c. 14), s. 87(2), Sch. 7 para. 60; S.I. 1999/418, art. 2(2)(3)(a)

F34 Word in s. 21(5A)(b) inserted (8.1.2001 for specified purposes, 25.1.2001 for specified purposes, 6.4.2002 in so far as not already in force) by Child Support, Pensions and Social Security Act 2000 (c. 19), ss. 35(2)(a), 86(1)(b)(2); S.I. 2000/2950, art. 6; S.I. 2001/153, art. 2(a)

F35 Words in s. 21(5A)(b) substituted (8.1.2001 for specified purposes, 25.1.2001 for specified purposes, 6.4.2002 in so far as not already in force) by Child Support, Pensions and Social Security Act 2000 (c. 19), ss. 35(2)(b), 86(1)(b)(2); S.I. 2000/2950, art. 6; S.I. 2001/153, art. 2(a)

F36 Words in s. 21(5A)(b) repealed with savings (6.4.2003) by Tax Credits Act 2002 (c. 21), s. 61, Sch. 6; S.I. 2003/962, art. 2(3)(e), Sch. 1

F37 Words in s. 21(5A)(c) inserted (3.1.2012) by Pensions Act 2008 (c. 30), s. 149(1), Sch. 4 para. 2; S.I. 2011/3033, art. 2(c)(ii)

22 Earnings factors. E+W+S

(1) A person shall, for the purposes specified in subsection (2) below, be treated as having annual earnings factors derived—

(a) in the case of 1987-88 or any subsequent tax year, from [F38 so much of his earnings as did not exceed the upper earnings limit and] upon which primary Class 1 contributions have been paid or treated as paid and from Class 2 and Class 3 contributions; and

(b) in the case of any earlier tax year, from his contributions of any of Classes 1, 2 and 3;

but subject to the following provisions of this section and those of section 23 below.

(2) The purposes referred to in subsection (1) above are those of—

(a) establishing, by reference to the satisfaction of contribution conditions, entitlement to [F39 a contribution-based jobseeker’s allowance[F40 , to a contributory employment and support allowance] or to] any benefit specified in section 20(1) above, other than maternity allowance; F41 ...

(b) calculating the additional pension in the rate of a long-term benefit [F42 ; and

(c) establishing entitlement to a state pension under Part 1 of the Pensions Act 2014 and, where relevant, calculating the rate of a state pension under that Part]; [F43 and

(d) establishing entitlement to bereavement support payment under section 30 of the Pensions Act 2014].

[F44 (2A) For the purposes specified in subsection (2)(b) above, in the case of the first appointed year or any subsequent tax year a person’s earnings factor shall be treated as derived only from [F45 so much of his earnings as did not exceed [F46 the applicable limit] and] on which primary Class 1 contributions have been paid or treated as paid.

[F47 This subsection does not affect the operation of sections 44A and 44B (deemed earnings factors).]]

[F48 (2B) “The applicable limit” means—

(a) in relation to a tax year before [F49 2009-10], the upper earnings limit;

(b) in relation to [F49 2009-10] or any subsequent tax year, the upper accrual point.]

(3) Separate earnings factors may be derived for 1987-88 and subsequent tax years—

(a) from earnings [F50 not exceeding the upper earnings limit] upon which primary Class 1 contributions have been paid or treated as paid;

(b) from earnings which have been credited;

(c) from contributions of different classes paid or credited in the same tax year;

(d) by any combination of the methods mentioned in paragraphs (a) to (c) above,

and may be derived for any earlier tax year from contributions of different classes paid or credited in the same tax year, and from contributions which have actually been paid, as opposed to those not paid but credited.

(4) Subject to regulations under section 19(4) to (6) above, no earnings factor shall be derived—

(a) for 1987-88 or any subsequent tax year, from earnings [F51 in respect of which] primary Class 1 contributions are paid at the reduced rate, or

(b) for any earlier tax year, from primary Class 1 contributions paid at the reduced rate or from secondary Class 1 contributions.

(5) Regulations may provide for crediting—

(a) for 1987-88 or any subsequent tax year, earnings or Class 2 or Class 3 contributions, or

(b) for any earlier tax year, contributions of any class,

for the purpose of bringing a person’s earnings factor for that tax year to a figure which will enable him to satisfy contribution conditions of entitlement to [F52 a contribution-based jobseeker’s allowance[F53 , to a contributory employment and support allowance] or to] any prescribed description of benefit (whether his own entitlement or another person’s).

[F54 (5ZA) Regulations may provide for crediting—

(a) for 1987-88 or any subsequent tax year, earnings or Class 2 or Class 3 contributions, or

(b) for any earlier tax year, contributions of any class,

for the purpose of bringing an earnings factor for that tax year to a figure which will make that year a “qualifying year”, “pre-commencement qualifying year” or “post-commencement qualifying year” of a person for the purposes of Part 1 of the Pensions Act 2014 (see sections 2(4) and 4(4) of that Act).

(5ZB) Regulations under subsection (5ZA) must provide for crediting a person with such contributions as may be specified in respect of periods on or after 6 April 1975 during which the person was—

(a) a spouse or civil partner of a member of Her Majesty's forces,

(b) accompanying the member on an assignment outside the United Kingdom, and

(c) not of a description specified in the regulations.]

[F55 (5A) Section 23A makes provision for the crediting of Class 3 contributions for the purpose of determining entitlement to the benefits to which that section applies.]

(6) Regulations may impose limits with respect to the earnings factors which a person may have or be treated as having in respect of any one tax year.

(7) The M1 power to amend regulations made before 30th March 1977 (the passing of the Social Security (Miscellaneous Provisions) Act 1977) under subsection (5) above may be so exercised as to restrict the circumstances in which and the purposes for which a person is entitled to credits in respect of weeks before the coming into force of the amending regulations; but not so as to affect any benefit for a period before the coming into force of the amending regulations if it was claimed before 18th March 1977.

[F56 (8) In this section, “contributory employment and support allowance” means a contributory allowance under Part 1 of the Welfare Reform Act 2007 (employment and support allowance).]

[F57 (9) References in this Act or any other Act to earnings factors derived from so much of a person's earnings as do not exceed the upper accrual point or the upper earnings limit are to be read, in relation to earners paid otherwise than weekly, as references to earnings factors derived from so much of those earnings as do not exceed the prescribed equivalent.]

Textual Amendments

F38 Words in s. 22(1)(a) substituted (with effect in relation to the tax year 2003-04 and subsequent tax years) by National Insurance Contributions Act 2002 (c. 19), s. 8(2), Sch. 1 para. 7(2)

F39 Words in s. 22(2)(a) inserted (7.10.1996) by Jobseekers Act 1995 (c. 18), s. 41(2), Sch. 2 para. 22; S.I. 1996/2208, art. 2(b)

F40 Words in s. 22(2)(a) inserted (27.10.2008) by Welfare Reform Act 2007 (c. 5), s. 70(2), Sch. 3 para. 9(3)(a); S.I. 2008/787, art. 2(4)(f)

F41 Word in s. 22(2) omitted (6.4.2016) by virtue of Pensions Act 2014 (c. 19), s. 56(4), Sch. 12 para. 6(2)(a)

F42 S. 22(2)(c) and word inserted (6.4.2016) by Pensions Act 2014 (c. 19), s. 56(4), Sch. 12 para. 6(2)(b)

F43 S. 22(2)(d) and word inserted (6.4.2017) by Pensions Act 2014 (c. 19), s. 56(1), Sch. 16 para. 5; S.I. 2017/297, art. 3(2) (with arts. 4, 5)

F44 S. 22(2A) inserted (8.1.2001 for specified purposes, 25.1.2001 for specified purposes, 6.4.2002 in so far as not already in force) by Child Support, Pensions and Social Security Act 2000 (c. 19), ss. 30(1), 86(1)(b)(2); S.I. 2000/2950, art. 6; S.I. 2001/153, art. 2(a)

F45 Words in s. 22(2A) substituted (with effect in relation to the tax year 2003-04 and subsequent tax years) by National Insurance Contributions Act 2002 (c. 19), s. 8(2), Sch. 1 para. 7(2)

F46 Words in s. 22(2A) substituted (26.9.2007) by Pensions Act 2007 (c. 22), ss. 12(1)(a), 30(3)

F47 Words in s. 22(2A) inserted (26.9.2007) by Pensions Act 2007 (c. 22), s. 30(3), Sch. 1 para. 33

F48 S. 22(2B) inserted (26.9.2007) by Pensions Act 2007 (c. 22), ss. 12(1)(b), 30(3)

F49 Word in s. 22(2B) substituted (21.9.2008) by National Insurance Contributions Act 2008 (c. 16), ss. 3(2), 6(1)

F50 Words in s. 22(3)(a) inserted (with effect in relation to the tax year 2003-04 and subsequent tax years) by National Insurance Contributions Act 2002 (c. 19), s. 8(2), Sch. 1 para. 7(3)

F51 Words in s. 22(4) substituted (6.4.1999) by Social Security Act 1998 (c. 14), s. 87(2), Sch. 7 para. 61; S.I. 1999/418, art. 2(2)(3)(a)

F52 Words in s. 22(5) inserted (7.10.1996) by Jobseekers Act 1995 (c. 18), s. 41(2), Sch. 2 para. 22; S.I. 1996/2208, art. 2(b)

F53 Words in s. 22(5) inserted (18.3.2008 for specified purposes, 27.10.2008 in so far as not already in force) by Welfare Reform Act 2007 (c. 5), s. 70(2), Sch. 3 para. 9(3)(b); S.I. 2008/787, art. 2(1)(4)(f), Sch.

F54 S. 22(5ZA)-(5ZB) inserted (15.1.2016 for specified purposes, 6.4.2016 in so far as not already in force) by Pensions Act 2014 (c. 19), s. 56(4), Sch. 12 para. 6(3); S.I. 2015/2058, art. 2(b)

F55 S. 22(5A) inserted (26.9.2007) by Pensions Act 2007 (c. 22), s. 30(3), Sch. 1 para. 9

F56 S. 22(8) inserted (18.3.2008 for specified purposes, 27.10.2008 in so far as not already in force) by Welfare Reform Act 2007 (c. 5), s. 70(2), Sch. 3 para. 9(4); S.I. 2008/787, art. 2(1)(4)(f), Sch.

F57 S. 22(9) inserted (21.9.2008) by National Insurance Contributions Act 2008 (c. 16), s. 6(1), Sch. 1 para. 2

Modifications etc. (not altering text)

C1 S. 22(4) modified (1.6.2007) by The Transfer of State Pensions and Benefits Regulations 2007 (S.I. 2007/1398), regs. 1(1), 8(2)

C2 S. 22(4) modified (1.6.2007) by The Transfer of State Pensions and Benefits Regulations (Northern Ireland) 2007 (S.R. 2007/286), reg. 1(1)(3), 8(2)

C3 S. 22(5)(a): power to make regulations modified (21.5.1998) by Social Security Act 1998 (c. 14), ss. 77, 87(2)(a)

Marginal Citations

M1 1977 c.5.

23 Provisions supplemental to sections 21 and 22. E+W+S

(1) Earnings factors derived as mentioned in section [F58 22(1)] above, including earnings factors as increased by any order under section 148 of the Administration Act—

(a) shall be expressed, subject to subsection (2) below, as whole numbers of pounds; and

(b) shall be made ascertainable from tables or rules to be drawn up by the Secretary of State and embodied in regulations.

(2) Subsection (1) above does not require earnings factors in respect of the tax year 1978-79 or any subsequent tax year which have been revalued for the purpose of calculating guaranteed minimum pensions under the Pensions Act [F59 or the Social Security Pensions Act 1975] to be expressed as whole numbers of pounds.

(3) The tables and rules referred to in subsection (1) above shall be drawn up so that, in general—

(a) in respect of the tax year 1987-88 and any subsequent tax year, the amount of earnings [F60 not exceeding the upper earnings limit] upon which primary Class 1 contributions have been paid or treated as paid gives rise, subject to [F61 subsections (3A) and] (4) below, to an earnings factor for that year equal or approximating to the amount of those earnings; and

(b) any number of Class 2 or Class 3 contributions in respect of a tax year gives rise to an earnings factor for that tax year equal or approximating to that year’s lower earnings limit for Class 1 contributions multiplied by the number of contributions.

[F62 (3A) For the purposes specified in section 22(2)(b) (additional pension), subsection (3)(a) has effect in relation to 2009-10 and subsequent tax years as if the reference to the upper earnings limit were to the upper accrual point.]

(4) The Secretary of State may by regulations make such modifications of subsection (3)(a) above as appear to him to be appropriate in consequence of section 8(2) above.

Textual Amendments

F58 Word in s. 23(1) substituted (19.7.1995) by Pensions Act 1995 (c. 26), ss. 134(1), 180(2)(a) (with Sch. 4)

F59 Words in s. 23(2) inserted (7.2.1994) by Pension Schemes Act 1993 (c. 48), s. 193(2), Sch. 8 para. 36 (with s. 189, Schs. 6, 9); S.I. 1994/86

F60 Words in s. 23(3)(a) inserted (with effect in relation to the tax year 2003-04 and subsequent tax years) by National Insurance Contributions Act 2002 (c. 19), s. 8(2), Sch. 1 para. 8

F61 Words in s. 23(3)(a) substituted (21.9.2008) by National Insurance Contributions Act 2008 (c. 16), s. 6(1), Sch. 1 para. 3(2)

F62 S. 23(3A) inserted (21.9.2008) by National Insurance Contributions Act 2008 (c. 16), s. 6(1), Sch. 1 para. 3(3)

[F63 23A Contributions credits for relevant parents and carers E+W+S

(1) This section applies to the following benefits—

(a) a Category A retirement pension in a case where the contributor concerned attains pensionable age on or after 6th April 2010;

(b) a Category B retirement pension payable by virtue of section 48A [F64 or 48AA] below in a case where the contributor concerned attains pensionable age on or after that date;

(c) a Category B retirement pension payable by virtue of section 48B below in a case where the contributor concerned dies on or after that date without having attained pensionable age before that date;

(d) a widowed parent's allowance payable in a case where the contributor concerned dies on or after that date;

F65 (e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) The contributor concerned in the case of a benefit to which this section applies shall be credited with a Class 3 contribution for each week falling after 6th April 2010 in respect of which the contributor was a relevant carer.

(3) A person is a relevant carer in respect of a week if the person—

(a) is awarded child benefit for any part of that week in respect of a child under the age of 12,

(b) is a foster parent for any part of that week, or

(c) is engaged in caring, within the meaning given by regulations, in that week.

(4) Regulations may make provision for a person's entitlement to be credited with Class 3 contributions by virtue of falling within subsection (3)(b) or (c) above to be conditional on the person—

(a) applying to be so credited in accordance with the prescribed requirements, and

(b) complying with the prescribed requirements as to the provision of information to the Secretary of State [F66 or to the Commissioners for Her Majesty’s Revenue and Customs].

(5) The contributor concerned in the case of a benefit to which this section applies shall be credited with 52 Class 3 contributions for each tax year ending before 6th April 2010 in which the contributor was precluded from regular employment by responsibilities at home within the meaning of regulations under paragraph 5(7) of Schedule 3.

(6) But the maximum number of tax years for which a person can be credited with contributions under subsection (5) above is—

(a) in the case of a benefit mentioned in subsection (1)(a) to (c) above, 22;

(b) in the case of a benefit mentioned in subsection (1)(d) F67 ... above, half the requisite number of years of the person's working life.

(7) The table in paragraph 5(5) of Schedule 3 (requisite number of years of a working life of given duration) applies for the purposes of subsection (6)(b) above as it applies for the purposes of the second condition set out in paragraph 5(3) of that Schedule.

(8) For the purpose of determining entitlement to a benefit to which this section applies, a week that falls partly in one tax year and partly in another is to be treated as falling in the year in which it begins and not in the following year.

[F68 (8A) Where this section, or regulations made under it, have the effect that the contributor concerned is credited, on or after 6 April 2016, with contributions for a tax year starting before that date, the contributions are to be treated for the purposes of calculating the rate under paragraph 3 of Schedule 1 to the Pensions Act 2014 as having been credited before 6 April 2016.]

(9) In this section—

• “the contributor concerned” has the meaning given in section 21(5)(a) above;

• “foster parent” has the meaning given by regulations.]

Textual Amendments

F63 S. 23A inserted (26.9.2007) by Pensions Act 2007 (c. 22), ss. 3(1), 30(3)

F64 Words in s. 23A(1)(b) inserted (6.4.2016) by Pensions Act 2014 (c. 19), s. 56(4), Sch. 12 para. 58

F65 S. 23A(1)(e) omitted (6.4.2017) by virtue of Pensions Act 2014 (c. 19), s. 56(1), Sch. 16 para. 6(2); S.I. 2017/297, art. 3(2) (with arts. 4, 5)

F66 Words in s. 23A(4)(b) inserted (6.4.2010) by The National Insurance Contribution Credits (Transfer of Functions) Order 2009 (S.I. 2009/1377), arts. 1(1), 5

F67 Words in s. 23A(6)(b) omitted (6.4.2017) by virtue of Pensions Act 2014 (c. 19), s. 56(1), Sch. 16 para. 6(3); S.I. 2017/297, art. 3(2) (with arts. 4, 5)

F68 S. 23A(8A) inserted (6.4.2016) by The Pensions Act 2014 (Consequential and Supplementary Amendments) Order 2016 (S.I. 2016/224), arts. 1(2), 2(2)

24 Records of earnings and calculation of earnings factors in absence of records. E+W+S

(1) Regulations may provide for requiring persons to maintain, in such form and manner as may be prescribed, records of such earnings paid by them as are relevant for the purpose of calculating earnings factors, and to retain such records for so long as may be prescribed.

(2) Where the Secretary of State is satisfied that records of earnings relevant for the purpose of calculating a person’s earnings factors for the tax year 1987-88 or any subsequent tax year have not been maintained or retained or are otherwise unobtainable, then, for the purpose of determining those earnings factors, he may—

(a) compute, in such manner as he thinks fit, an amount which shall be regarded as the amount of [F69 so much of that person’s earnings as did not exceed the upper earnings limit and] on which primary Class 1 contributions have been paid or treated as paid; or

(b) take the amount of those earnings to be such sum as he may specify in the particular case.

Textual Amendments

F69 Words in s. 24(2)(a) substituted (with effect in relation to the tax year 2003-04 and subsequent tax years) by National Insurance Contributions Act 2002 (c. 19), s. 8(2), Sch. 1 para. 9