The Social Security Benefits Up-rating (No.2) Order 1987

Explanatory Note

(This note is not part of the Order)

This Order, a draft of which has been laid before and approved by resolution of each House of Parliament, is made as a consequence of a review under section 63(1) of the Social Security Act 1986. It alters, with effect from dates in the week beginning 11th April 1988 which are specified in articles 4 to 6, the rates and amounts of certain benefits and other sums. The rates of statutory maternity pay and statutory sick pay are also altered.

Article 2 alters the benefits and increases of benefit (except age addition) specified in Parts I, III, IV and V of Schedule 4 to that Act; article 3 increases the rates and amounts of certain benefits under Part II of the Social Security Pensions Act 1975 (including increases of Category A or B retirement pension payable by reference to the increases of increments in guaranteed minimum pensions payable by virtue of section 35(6) of that Act); article 4 specifies the dates from which the rates or amounts of benefits are altered; article 5 increases the rates laid down in the Industrial Injuries and Diseases (Old Cases) Act 1975 for the maximum weekly rate of lesser incapacity allowance supplementing workmen’s compensation and the weekly rate of allowance under the Industrial Diseases Benefit Schemes where disablement is not total; article 6 increases the rate of graduated retirement pension under the National Insurance Act 1965; article 7 provides for the weekly rate of one-parent benefit to be increased; article 8 increases the weekly rates of statutory sick pay payable as from 6th April 1988 under section 7(1) of the Social Security and Housing Benefits Act 1982; article 9 increases the lower rate of statutory maternity pay and article 10 specifies earnings limits for retirement pensions and child dependency increases. Article 11 is a transitional provision relating to statutory sick pay.

In accordance with section 63(11) of the Social Security Act 1986, a copy of the report of the Government Actuary (Cm. 243) giving his opinion on the likely effect on the National Insurance Fund of the making of this Order was laid before Parliament with the draft Order.