The Social Security Benefits Up-rating Order 2012

Status:

Dyma’r fersiwn wreiddiol (fel y’i gwnaed yn wreiddiol).

PART 1INTRODUCTION

Citation, commencement and effect

1.—(1) This Order may be cited as the Social Security Benefits Up-rating Order 2012.

(2) Subject to paragraph (3), this Order shall come into force for the purposes of—

(a)this article and articles 2, 6 and 29, on 1st April 2012;

(b)article 3—

(i)in so far as it relates to any increase to which article 6(10)(b) applies, on 1st April 2012, and

(ii)for all other purposes, on 9th April 2012;

(c)articles 4, 5, 7, 12, 13 and 16, on 9th April 2012;

(d)article 8, in so far as it relates to a particular beneficiary, on the first day of the first benefit week to commence for that beneficiary on or after 1st April 2012, and for the purpose of this sub-paragraph “benefit week” has the same meaning as in regulation 2(1) of the Computation of Earnings Regulations;

(e)article 9, on 6th April 2012;

(f)article 10, on 1st April 2012, except for the purpose of determining the rate of maternity allowance in accordance with section 35A(1)(1) of the Contributions and Benefits Act(2), for which purpose it shall come into force on 9th April 2012;

(g)article 11, on 1st April 2012;

(h)articles 14 and 15, on 12th April 2012;

(i)articles 17 to 19, in so far as they relate to a particular beneficiary, on the first day of the first benefit week to commence for that beneficiary on or after 9th April 2012, and for the purpose of this sub-paragraph “benefit week” has the same meaning as in the Income Support Regulations;

(j)articles 20 and 21, in relation to a case where rent is payable at intervals of a week or any multiple thereof, on 2nd April 2012, and in relation to any other case, on 1st April 2012;

(k)articles 22 and 23, on 1st April 2012;

(l)articles 24 to 26, in so far as they relate to a particular beneficiary—

(i)for the purposes of article 24(c), in so far as it relates to an increase to which article 6(10)(b) applies, on 1st April 2012, and

(ii)for all other purposes, on the first day of the first benefit week to commence for that beneficiary on or after 9th April 2012, and for the purposes of this head “benefit week” has the same meaning as in the Jobseeker’s Allowance Regulations;

(m)article 27, in so far as it relates to a particular beneficiary, on the first day of the first benefit week to commence for that beneficiary on or after 9th April 2012, and for the purpose of this sub-paragraph “benefit week” has the same meaning as in the State Pension Credit Regulations; and

(n)article 28, in so far as it relates to a particular beneficiary, on the first day of the first benefit week to commence for that beneficiary on or after 9th April 2012, and for the purpose of this sub-paragraph “benefit week” has the same meaning as in the Employment and Support Allowance Regulations.

(3) The changes made—

(a)in the sums specified for rates or amounts of benefit under the Contributions and Benefits Act or the Pension Schemes Act; and

(b)by article 24(c) in so far as it is relevant for the purposes referred to in article 6(10),

shall take effect for each case on the date specified in relation to that case in article 6.

Interpretation

2. In this Order—

“the Administration Act” means the Social Security Administration Act 1992;

“the Computation of Earnings Regulations” means the Social Security Benefit (Computation of Earnings) Regulations 1996(3);

“the Contributions and Benefits Act” means the Social Security Contributions and Benefits Act 1992;

“the Council Tax Benefit Regulations” means the Council Tax Benefit Regulations 2006(4);

“the Council Tax Benefit (SPC) Regulations” means the Council Tax Benefit (Persons who have attained the qualifying age for State Pension Credit) Regulations 2006(5);

“the Employment and Support Allowance Regulations” means the Employment and Support Allowance Regulations 2008(6);

“the Housing Benefit Regulations” means the Housing Benefit Regulations 2006(7);

“the Housing Benefit (SPC) Regulations” means the Housing Benefit (Persons who have attained the qualifying age for State Pension Credit) Regulations 2006(8);

“the Income Support Regulations” means the Income Support (General) Regulations 1987(9);

“the Jobseeker’s Allowance Regulations” means the Jobseeker’s Allowance Regulations 1996(10);

“the Pension Schemes Act” means the Pension Schemes Act 1993(11); and

“the State Pension Credit Regulations” means the State Pension Credit Regulations 2002(12).

PART 2SOCIAL SECURITY BENEFITS AND PENSIONS

Rates or amounts of certain benefits under the Contributions and Benefits Act

3.—(1) From and including the respective dates specified in article 6—

(a)the sums specified in paragraph (2) shall be increased; and

(b)the sums specified in paragraph 3(a) and (b) of Part III of Schedule 4 to the Contributions and Benefits Act (age related addition – higher and middle rates) shall be reduced(13),

so that Schedule 4 to the Contributions and Benefits Act (contributory periodical benefits, non-contributory periodical benefits, increases for dependants and rates of industrial injuries benefit), except paragraph 5 of Part III of that Schedule (guardian’s allowance), has effect as set out in Schedule 1 to this Order.

(2) The sums mentioned in paragraph (1) are the sums specified in Parts I, III, IV and V of Schedule 4 to the Contributions and Benefits Act except, in—

(a)Part III, the sums specified for age related addition (higher and middle rates) and age addition to a pension of any category and otherwise under section 79 of that Act;

(b)Part IV, the sums specified in column (2) (increase for qualifying child); and

(c)Part V, the sums specified for the increase in disablement pension for dependent children, widow’s pension (initial rate) and death benefit allowance in respect of children and qualifying young persons(14).

Increase in rates or amounts of certain pensions and allowances under the Contributions and Benefits Act

4.—(1) The sums specified in paragraphs (2) to (5) shall be increased from and including the respective dates specified in article 6.

(2) The sums falling to be calculated under paragraph 13(4) of Schedule 7 to the Contributions and Benefits Act (calculation of weekly rate of a beneficiary’s retirement allowance) shall be increased by 5.2 per cent.

(3) In section 44(4) of the Contributions and Benefits Act(15) (basic pension in a Category A retirement pension)—

(a)for “£90.45” substitute “£95.15”; and

(b)for “£102.15” substitute “£107.45”.

(4) It is directed(16) that the sums which are—

(a)additional pensions in long-term benefits calculated by reference to any final relevant year earlier than the tax year 2011-2012;

(b)increases in the rates of retirement pensions under Schedule 5 to the Contributions and Benefits Act(17) (pension increase or lump sum where entitlement to retirement pension is deferred);

(c)lump sums to which surviving spouses or civil partners will become entitled under paragraph 7A of that Schedule(18) on becoming entitled to a Category A or Category B retirement pension (entitlement to lump sum where pensioner’s deceased spouse or civil partner has deferred entitlement); and

(d)payable to a pensioner as part of their Category A or Category B retirement pension by virtue of an order made under section 126A of the Social Security Act 1975(19), section 63 of the Social Security Act 1986(20) or section 150(1)(e) of the Administration Act,

shall in each case be increased by 5.2 per cent.

(5) The sums which, under—

(a)section 55A of the Contributions and Benefits Act(21), are shared additional pensions; and

(b)paragraph 2 of Schedule 5A to the Contributions and Benefits Act(22), are increases in the rates of such pensions,

shall in each case be increased by 5.2 per cent.

Increase in rates or amount of certain benefits under the Pension Schemes Act

5.—(1) It is directed(23) that the sums specified in paragraph (2) shall be increased from and including the respective dates specified in article 6.

(2) Sums which are payable by virtue of section 15(1) of the Pension Schemes Act (which provides for increases in a person’s guaranteed minimum pension if payment of their occupational pension is postponed after they attain 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 17(2)(24) and (3) of that Act) shall be increased by—

(a)5.2 per cent where the increase under section 15(1) is attributable to earnings factors for the tax year 1987-88 and earlier tax years(25); and

(b)2.2 per cent where the increase under section 15(1) is attributable to earnings factors for the tax years 1988-89 to 1996-97 inclusive.

Dates on which sums specified for rates or amounts of benefits under the Contributions and Benefits Act or the Pension Schemes Act are changed by this Order

6.—(1) Paragraphs (2) to (9), which are subject to the provisions of paragraph (10), specify the date on which the changes made by this Order in the sums specified for rates or amounts of benefit under the Contributions and Benefits Act or the Pension Schemes Act shall take effect for each case.

(2) Subject to paragraph (3), any increases in the sums mentioned in articles 3, 4 and 12 for Category A and Category B retirement pension and graduated retirement benefit together with, where appropriate, any increases for dependants, shall take effect on 9th April 2012.

(3) In the case of a person over pensionable age—

(a)whose entitlement to a Category A retirement pension is deferred; and

(b)for whom the rate of short-term incapacity benefit falls to be calculated in accordance with section 30B(3) of the Contributions and Benefits Act(26),

any increases in the sums mentioned in articles 3, 4 and 12 for Category A and Category B retirement pension and graduated retirement benefit together with, where appropriate, any increases for dependants, shall take effect on 12th April 2012.

(4) The increases in the sums mentioned in articles 4(4)(d) and 5(2) shall take effect on 9th April 2012.

(5) Any increases in the sums specified for—

(a)the rate of—

(i)Category C and Category D retirement pension,

(ii)attendance allowance, and

(iii)carer’s allowance (except in a case where the Secretary of State has made arrangements for it to be paid on a Wednesday); and

(b)any increases in—

(i)Category C retirement pension and carer’s allowance referred to in sub-paragraph (a)(i) and (iii), and

(ii)widowed mother’s allowance and widowed parent’s allowance,

in respect of dependants,

shall in all cases take effect on 9th April 2012.

(6) Any increases in the sums specified for—

(a)the rate of—

(i)carer’s allowance in a case where the Secretary of State has made arrangements for it to be paid on a Wednesday,

(ii)disablement benefit,

(iii)maximum disablement gratuity under paragraph 9(2) of Schedule 7 to the Contributions and Benefits Act,

(iv)industrial death benefit by way of widow’s and widower’s pension and allowance in respect of children and qualifying young persons(27),

(v)the maximum of the aggregate of weekly benefit payable for successive accidents, under section 107(1) of the Contributions and Benefits Act; and

(b)any increases in—

(i)the benefits referred to in heads (i), (iii) and (iv) of sub-paragraph (a) in respect of dependants, and

(ii)disablement pension,

shall in all cases take effect on 11th April 2012.

(7) In any case where a person’s weekly rate of Category A or Category B retirement pension falls to be increased under the provisions of section 47(1) or 48C(2) of the Contributions and Benefits Act(28) by reference to the weekly rate of invalidity allowance or age addition to long-term incapacity benefit to which he was previously entitled, any increase in such sum shall take effect on 9th April 2012.

(8) The changes in the sums specified for the rate of incapacity benefit and severe disablement allowance together with, where appropriate, any increases for dependants, shall take effect in all cases on 12th April 2012.

(9) The increases in the sums falling to be calculated in accordance with paragraph 13(4) of Schedule 7 to the Contributions and Benefits Act (retirement allowance) shall take effect on 11th April 2012.

(10) Any increases in the sums specified in articles 3 and 24(c), in so far as those sums are relevant for the purposes of establishing whether the rate of any benefit is not to be increased in respect of an adult dependant because the earnings of the dependant exceed a specified amount(29), shall take effect—

(a)except in a case where sub-paragraph (b) applies, on the first day of the first benefit week to commence for the beneficiary on or after 9th April 2012;

(b)in a case where regulation 7(b) of the Computation of Earnings Regulations (date on which earnings are treated as paid) applies, on the first day of the first benefit week to commence for the beneficiary on or after 1st April 2012,

and for the purpose of this paragraph, “benefit week” has the same meaning as in regulation 2(1) of the Computation of Earnings Regulations.

Increase in rates of certain compensation and industrial diseases benefits in respect of employment before 5th July 1948

7. From and including—

(a)11th April 2012, for “£55.55” referred to in paragraph 2(6)(c) of Schedule 8 to the Contributions and Benefits Act(30) (maximum weekly rate of lesser incapacity allowance supplementing workmen’s compensation);

(b)12th April 2012, for that sum referred to in paragraph 6(2)(b) of that Schedule(31) (industrial diseases benefit schemes: weekly rate of allowance payable where disablement is not total),

substitute “£58.45”.

Earnings Limits

8. In section 80(4) of the Contributions and Benefits Act(32) (earnings limits in respect of child dependency increases)—

(a)for “£205.00”, in both places where it occurs, substitute “£215.00”; and

(b)for “£27.00” substitute “£28.00”.

Statutory Sick Pay

9. In section 157(1) of the Contributions and Benefits Act(33) (rate of payment of statutory sick pay) for “£81.60” substitute “£85.85”.

Statutory Maternity Pay

10. In regulation 6 of the Statutory Maternity Pay (General) Regulations 1986(34) (prescribed rate of statutory maternity pay) for “£128.73” substitute “£135.45”.

Ordinary and Additional Statutory Paternity Pay, and Statutory Adoption Pay

11.—(1) In the Statutory Paternity Pay and Statutory Adoption Pay (Weekly Rates) Regulations 2002(35)—

(a)in regulation 2(a) (weekly rate of payment of statutory paternity pay) for “£128.73” substitute “£135.45”; and

(b)in regulation 3(a) (weekly rate of payment of statutory adoption pay) for “£128.73” substitute “£135.45”.

(2) In regulation 2(a) of the Additional Statutory Paternity Pay (Weekly Rates) Regulations 2010(36) (weekly rate of payment of additional statutory paternity pay) for “£128.73” substitute “£135.45”.

Increase in rate of graduated retirement benefit

12.—(1) In section 36(1) of the National Insurance Act 1965(37) (graduated retirement benefit)—

(a)the sum of 11.89 pence shall be increased by 5.2 per cent.; and

(b)from and including 9th April 2012 the reference in that provision to that sum shall have effect as a reference to 12.51 pence.

(2) The sums which are the increases of graduated retirement benefit under Schedule 2 to the Social Security (Graduated Retirement Benefit) (No. 2) Regulations 1978(38) (increases for deferred retirement) shall be increased by 5.2 per cent.

(3) The sums which are lump sums to which surviving spouses or civil partners will become entitled under Schedule 1 to the Social Security (Graduated Retirement Benefit) Regulations 2005(39) (increases of graduated retirement benefit and lump sums) shall be increased by 5.2 per cent.

(4) The sums which are the additions under section 37(1) of the National Insurance Act 1965 (additions for widows and widowers) shall be increased by 5.2 per cent.

Increase in rates of Disability Living Allowance

13. In regulation 4 of the Social Security (Disability Living Allowance) Regulations 1991(40) (rate of benefit)—

(a)in paragraph (1)(a) for “£73.60” substitute “£77.45”;

(b)in paragraph (1)(b) for “£49.30” substitute “£51.85”;

(c)in paragraph (1)(c) for “£19.55” substitute “£20.55”;

(d)in paragraph (2)(a) for “£51.40” substitute “£54.05”; and

(e)in paragraph (2)(b) for “£19.55” substitute “£20.55”.

Rates of age addition

14.—(1) Subject to paragraph (2), in regulation 10(2) of the Social Security (Incapacity Benefit) Regulations 1994(41) (increase in rate of incapacity benefit where beneficiary is under prescribed age on the qualifying date)—

(a)in sub-paragraph (a) for “£19.25” substitute “£20.25”; and

(b)in sub-paragraph (b) for “£9.65” substitute “£10.15”.

(2) In the case of a claimant entitled to long-term incapacity benefit—

(a)the sum specified in regulation 10(2)(a)(42) shall be reduced to “£11.70”; and

(b)the sum specified in regulation 10(2)(b) shall be increased to “£5.90”.

Rates of transitional invalidity allowance

15.—(1) Subject to paragraph (2), in regulation 18(2) of the Social Security (Incapacity Benefit) (Transitional) Regulations 1995(43) (rate of long-term incapacity benefit in transitional cases)—

(a)in sub-paragraph (a) for “£19.25” substitute “£20.25”;

(b)in sub-paragraph (b) for “£12.40” substitute “£13.00”; and

(c)in sub-paragraph (c) for “£6.20” substitute “£6.50”.

(2) In the case of a claimant entitled to long-term incapacity benefit—

(a)the sums specified in regulation 18(2)(a) and (b)(44) shall be reduced to “£11.70” and “£5.90” respectively; and

(b)the sum specified in regulation 18(2)(c) shall be increased to “£5.90”.

Rates of bereavement benefits

16. In the Rate of Bereavement Benefits Regulations 2010(45)—

(a)in regulation 2 (rate of widowed mother’s allowance and widow’s pension) for “£100.70” substitute “£105.95”; and

(b)in regulation 3 (rate of widowed parent’s allowance and bereavement allowance) for “£100.70” substitute “£105.95”.

PART 3INCOME SUPPORT, HOUSING BENEFIT AND COUNCIL TAX BENEFIT

Applicable amounts for Income Support

17.—(1) The sums relevant to the calculation of an applicable amount as specified in the Income Support Regulations shall be the sums set out in this article and Schedules 2 to 4 to this Order; and unless stated otherwise any reference in this article to a numbered Schedule is a reference to the Schedule to the Income Support Regulations bearing that number.

(2) In—

(a)regulations 17(1)(b), 18(1)(c) and 21(1); and

(b)paragraphs 13A(2)(a)(46) and 14(2)(a)(47) of Part III of Schedule 2,

the sum specified is in each case £3,000.

(3) The sums specified in Part I of Schedule 2(48) (applicable amounts: personal allowances) shall be as set out in Schedule 2 to this Order.

(4) In paragraph 3 of Part II of Schedule 2(49) (applicable amounts: family premium)—

(a)in sub-paragraph (1)(a) “£17.40” remains unchanged; and

(b)in sub-paragraph (1)(b) “£17.40” remains unchanged.

(5) The sums specified in Part IV of Schedule 2(50) (applicable amounts: weekly amounts of premiums) shall be as set out in Schedule 3 to this Order.

(6) In paragraph 18 of Schedule 3(51) (housing costs: non-dependant deductions)—

(a)in sub-paragraph (1)(a) for “£60.60” substitute “£73.85”;

(b)in sub-paragraph (1)(b) for “£9.40” substitute “£11.45”;

(c)in sub-paragraph (2)(a) for “£122.00” substitute “£124.00”;

(d)in sub-paragraph (2)(b) for “£122.00”, “£180.00” and “£21.55” substitute “£124.00”, “£183.00” and “£26.25” respectively;

(e)in sub-paragraph (2)(c) for “£180.00”, “£234.00” and “£29.60” substitute “£183.00”, “£238.00” and “£36.10” respectively;

(f)in sub-paragraph (2)(d) for “£234.00”, “£310.00” and “£48.45” substitute “£238.00”, “£316.00” and “£59.05” respectively; and

(g)in sub-paragraph (2)(e) for “£310.00”, “£387.00” and “£55.20” substitute “£316.00”, “£394.00” and “£67.25” respectively.

(7) The sums specified in any provision of the Income Support Regulations set out in column (1) of Schedule 4 to this Order are the sums set out in column (2) of that Schedule.

Income Support Transitional Protection

18. It is directed(52) that the sums which are special transitional additions to income support payable in accordance with regulation 15 of the Income Support (Transitional) Regulations 1987(53) (special transitional addition) shall be increased by 5.2 per cent.

The Relevant Sum for Income Support

19. In section 126(7) of the Contributions and Benefits Act(54) (trade disputes: the relevant sum) for “£36.00” substitute “£38.00”.

Housing Benefit

20.—(1) The sums relevant to the calculation of an applicable amount as specified in the Housing Benefit Regulations shall be the sums set out in this article and Schedules 5 and 6 to this Order; and unless otherwise stated, any reference in this article to a numbered Schedule is a reference to the Schedule to the Housing Benefit Regulations bearing that number.

(2) In regulation 27(3) (calculation of income on a weekly basis)—

(a)in sub-paragraph (a) “£175.00” remains unchanged; and

(b)in sub-paragraph (b) “£300.00” remains unchanged.

(3) In regulation 74(55) (non-dependant deductions)—

(a)in sub-paragraph (1)(a) for “£60.60” substitute “£73.85”;

(b)in sub-paragraph (1)(b) for “£9.40” substitute “£11.45”;

(c)in sub-paragraph (2)(a) for “£122.00” substitute “£124.00”;

(d)in sub-paragraph (2)(b) for “£122.00”, “£180.00” and “£21.55” substitute “£124.00”, “£183.00” and “£26.25” respectively;

(e)in sub-paragraph (2)(c) for “£180.00”, “£234.00” and “£29.60” substitute “£183.00”, “£238.00” and “£36.10” respectively;

(f)in sub-paragraph (2)(d) for “£234.00”, “£310.00” and “£48.45” substitute “£238.00”, “£316.00” and “£59.05” respectively; and

(g)in sub-paragraph (2)(e) for “£310.00”, “£387.00” and “£55.20” substitute “£316.00”, “£394.00” and “£67.25” respectively.

(4) In paragraph 2 of Part 1 of Schedule 1 (ineligible service charges), for “£24.05”, “£24.05”, “£12.15”, “£16.00”, “£16.00”, “£8.05” and “£2.95” substitute “£25.30”, “£25.30”, “£12.80”, “£16.85”, “£16.85”, “£8.45” and “£3.10” respectively.

(5) In paragraph 6 of Part 2 of Schedule 1 (payments in respect of fuel charges)—

(a)in sub-paragraph (2)(a) for “£21.55” substitute “£25.50”;

(b)in sub-paragraph (2)(b) and (d) for “£2.50” substitute “£2.95”; and

(c)in sub-paragraph (2)(c) for “£1.75” substitute “£2.05”.

(6) The sums specified in Part 1 of Schedule 3(56) (applicable amounts: personal allowances) shall be as set out in Schedule 5 to this Order.

(7) In paragraph 3 of Part 2 of Schedule 3 (applicable amounts: family premium)—

(a)in sub-paragraph (1)(a) “£22.20” remains unchanged; and

(b)in sub-paragraph (1)(b) “£17.40” remains unchanged.

(8) The sums specified in Part 4 of Schedule 3 (applicable amounts: premiums) shall be as set out in Schedule 6 to this Order.

(9) In Part 6 of Schedule 3(57) (amount of components)—

(a)in paragraph 25 for “£26.75” substitute “£28.15”; and

(b)in paragraph 26 for “£32.35” substitute “£34.05”.

(10) In paragraph 17(1)(58) and (3)(c) of Schedule 4 (sums to be disregarded in the calculation of earnings) “£17.10” remains unchanged.

(11) In paragraph 56 of Schedule 5 (sums to be disregarded in the calculation of income other than earnings) “£17.10” remains unchanged.

Housing Benefit for certain persons over the qualifying age for State Pension Credit

21.—(1) The sums relevant to the calculation of an applicable amount as specified in the Housing Benefit (SPC) Regulations shall be the sums set out in this article and Schedules 7 and 8 to this Order; and unless stated otherwise, any reference in this article to a numbered Schedule is a reference to the Schedule to the Housing Benefit (SPC) Regulations bearing that number.

(2) In regulation 30(3) (calculation of income on a weekly basis)—

(a)in sub-paragraph (a) “£175.00” remains unchanged; and

(b)in sub-paragraph (b) “£300.00” remains unchanged.

(3) In regulation 55(59) (non-dependant deductions)—