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The Social Security Benefits Up-rating (No. 2) Order 1991

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Increase in rates or amounts of certain benefits under the Pensions Act

4.—(1) The sums specified in paragraphs (2) and (3) below shall be increased from and including the respective dates specified in article 5 below.

(2) In section 6(1)(a) of the Pensions Act (basic pension in a Category A retirement pension)—

(a)so far as the sum is relevant for the purpose of calculating under section 14(6) of the 1975 Act the rate of sickness benefit, for the sum of £49.90 there shall be substituted the sum of £51.95;

(b)except so far as mentioned in sub-paragraph (a) above, for the sum of £52.00 there shall be substituted the sum of £54.15.

(3) It is hereby directed(1) that the sums which are—

(a)the additional pensions in the rate of long-term benefits calculated by reference to any final relevant year earlier than the tax year 1991/92,

(b)the increases in the rates of retirement pensions under Schedule 1 to the Pensions Act (increase of pension where pensioner’s entitlement deferred), and

(c)payable to a pensioner as part of his Category A or Category B retirement pension by virtue of an order made under section 126A of the 1975 Act(2) or section 63 of the 1986 Act,

shall in each case be increased by 4.1 per cent. of their amount apart from this Order.

(4) Sums which are payable by virtue of section 35(6) of the Pensions Act (which provides for increases in a person’s guaranteed minimum pension if payment of his occupational pension is postponed after he attains pensionable age) to a person who is also entitled to a Category A or Category B retirement pension (including sums payable by virtue of section 36(3)), shall be increased by—

(a)4.1 per cent. of their amount apart from this Order where the increase under section 35(6) is attributable to earnings factors for the tax year 1987—88 and earlier tax years, and

(b)1.1 per cent. of their amount apart from this Order where the increase under section 35(6) is attributable to earnings factors for the tax year 1988—89 and subsequent tax years(3) .

(1)

See section 23(2) and (3) of the Social Security Pensions Act 1975 (c. 60), as amended by the Social Security Act 1986, Schedule 10, paragraph 91.

(2)

Section 126A was inserted by section 12 of the Social Security Act 1979 (c. 18) and repealed by the Social Security Act 1986, section 86, Schedule 11.

(3)

See section 63(7) and (8) of the Social Security Act 1986 and the Guaranteed Minimum Pensions Increase (No. 2) Order 1991 (S.I. 1991/). Subsection (7) provides for the increases to be paid as part of a Category A or Category B retirement pension.

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