Modifications etc. (not altering text)
C1Pts. 1, 6 modified (6.4.2001) by S.I. 2001/1004, regs. 1(1), 113, 114(2) (with reg. 138)
Modifications etc. (not altering text)
C2Pt. 2 modified (E.W.S.) (11.11.1999 for specified purposes, 1.12.2000 in so far as not already in force) by Welfare Reform and Pensions Act 1999 (c. 30), ss. 49, 89(5)(a); S.I. 2000/1047, art. 2(2)(d), Sch. Pt. IV
(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 [F1so 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 [F2a contribution-based jobseeker’s allowance[F3, to a contributory employment and support allowance] or to] any benefit specified in section 20(1) above, other than maternity allowance; and
(b)calculating the additional pension in the rate of a long-term benefit.
[F4(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 [F5so much of his earnings as did not exceed [F6the applicable limit] and] on which primary Class 1 contributions have been paid or treated as paid.
[F7This subsection does not affect the operation of sections 44A and 44B (deemed earnings factors).]]
[F8(2B)“The applicable limit” means—
(a)in relation to a tax year before [F92009-10], the upper earnings limit;
(b)in relation to [F92009-10] 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 [F10not 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 [F11in 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 [F12a contribution-based jobseeker’s allowance[F13, to a contributory employment and support allowance] or to] any prescribed description of benefit (whether his own entitlement or another person’s).
[F14(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 M1power 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.
[F15(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).]
[F16(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
F1Words 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)
F2Words 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)
F3Words 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)
F4S. 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)
F5Words 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)
F6Words in s. 22(2A) substituted (26.9.2007) by Pensions Act 2007 (c. 22), ss. 12(1)(a), 30(3)
F7Words in s. 22(2A) inserted (26.9.2007) by Pensions Act 2007 (c. 22), s. 30(3), Sch. 1 para. 33
F8S. 22(2B) inserted (26.9.2007) by Pensions Act 2007 (c. 22), ss. 12(1)(b), 30(3)
F9Word in s. 22(2B) substituted (21.9.2008) by National Insurance Contributions Act 2008 (c. 16), ss. 3(2), 6(1)
F10Words 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)
F11Words 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)
F12Words 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)
F13Words 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.
F14S. 22(5A) inserted (26.9.2007) by Pensions Act 2007 (c. 22), s. 30(3), Sch. 1 para. 9
F15S. 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.
F16S. 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)
C4S. 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)
C5S. 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)
C6S. 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