Part XU.K.Review and Alteration of Benefits

150Annual up-rating of benefitsU.K.

(1)The Secretary of State shall in each tax year review the sums—

(a)specified in the following provisions of the Contributions and Benefits Act—

[F1(i)Schedule 4 (excluding the provisions of Parts 1, 3 and 5 of the Schedule that specify amounts mentioned in section 150A(1) below); and

(ii)section 44(4) so far as relating to the lower rate of short-term incapacity benefit;] and

(iii)paragraphs 2(6)(c) and 6(2)(b) of Schedule 8;

[F2(aa)specified in regulations under section 30B(7) of that Act;]

[F3(ab)specified in regulations under section 39(2A) or section 39C(1A) of that Act;]

[F4(ac)specified in regulations under section 52(3) of that Act;]

(b)specified in regulations under section 72(3) or 73(10) of that Act;

(c)which are the additional pensions in long-term benefits;

[F5(ca)which are shared additional pensions;]

(d)which are the increases in the rates of retirement pensions under Schedule 5 to the Contributions and Benefits Act;

[F6(dza)which are lump sums to which surviving spouses [F7or civil partners] will become entitled under paragraph 7A of that Schedule on becoming entitled to a Category A or Category B retirement pension;]

[F8(da)which are the increases in the rates of shared additional pensions under [F9paragraph 2 of Schedule 5A to] that Act;]

(e)which are—

(i)payable by virtue of [F10section 15(1)] of the Pensions Act to a [F11relevant person] (including sums payable by virtue of [F10section 17(2)]); or

(ii)payable to such a person as part of his Category A or Category B retirement pension by virtue of an order made under this section by virtue of this paragraph or made under section 126A of the 1975 Act or section 63(1)(d) of the 1986 Act;

F12(f). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(g)falling to be calculated under paragraph 13(4) of Schedule 7 to that Act;

(h)prescribed for the purposes of section 128(5) or 129(8) of that Act or specified in regulations under section 135(1) [F13of that Act];

(i)specified by virtue of section 145(1) of that Act;

(j)specified in section 157(1) of that Act or in regulations under [F14section 166(1)(b), 171ZE(1) [F15, [F16171ZN(2E)(b) [F17, 171ZY(1) or 171ZZ9(1)]]]];

[F18(k)specified in regulations under sections 4(2) or (5) of the Jobseekers Act 1995;]

[F19(l)specified in regulations under sections 2 or 3 of the State Pension Credit Act 2002 [F20(other than those prescribing the amounts mentioned in section 150A(1)(d) below)];]

[F21(m)specified in regulations under section 2(1)(a) or (4)(c) or 4(2)(a) or (6)(c) of the Welfare Reform Act 2007;]

[F22(n)specified in regulations under sections 9 to 12 of the Welfare Reform Act 2012;]

[F23(o)specified in regulations under section 78(3) or 79(3) of that Act;]

[F24(p)which are the increases in the rates of state pensions under section 17 of the Pensions Act 2014;]

[F25(q)specified in regulations under section 30 of the Pensions Act 2014 (bereavement support payment)];

in order to determine whether they have retained their value in relation to the general level of prices obtaining in Great Britain estimated in such manner as the Secretary of State thinks fit.

[F26(1A)In subsection (1)(e)(i) “relevant person” means a person—

(a)who became entitled to a Category A or Category B retirement pension before the day on which section 2(1) of the Pensions Act 2011 comes into force, and

(b)to whom sums became payable by virtue of section 15(1) of the Pension Schemes Act 1993 (including sums payable by virtue of section 17(2)) before that day.

(1B)In subsection (1A)—

(a)a reference to becoming entitled to a pension before a day includes a reference to becoming entitled on or after that day to the payment of a pension in respect of a period before that day;

(b)a reference to sums becoming payable before a day includes a reference to sums becoming payable on or after that day in respect of a period before that day.]

(2)Where it appears to the Secretary of State that the general level of prices is greater at the end of the period under review than it was at the beginning of that period, he shall lay before Parliament the draft of an up-rating order—

(a)which increases each of the sums to which subsection (3) below applies by a percentage not less than the percentage by which the general level of prices is greater at the end of the period than it was at the beginning; and

(b)if he considers it appropriate, having regard to the national economic situation and any other matters which he considers relevant, which also increases by such a percentage or percentages as he thinks fit any of the sums mentioned in subsection (1) above but to which subsection (3) below does not apply; and

(c)stating the amount of any sums which are mentioned in subsection (1) above but which the order does not increase.

(3)This subsection applies to sums—

(a)specified in Part I, [F27paragraphs [F281 to 5] of Part III], Part IV or Part V of Schedule 4 to the Contributions and Benefits Act [F29(excluding the provisions of Parts 1 and 5 of the Schedule that specify amounts mentioned in section 150A(1) below)];

(b)mentioned in subsection (1)(a)(ii) or (iii), [F30(aa),] [F31(ab),] (b), (c), (d), [F32(dza),] (e) [F33, (g) or (o)] above.

(4)Subsection (2) above shall not require the Secretary of State to provide for an increase in any case in which it appears to him that the amount of the increase would be inconsiderable.

(5)The Secretary of State may, in providing for an increase in pursuance of subsection (2) above, adjust the amount of the increase so as to round any sum up or down to such extent as he thinks appropriate.

(6)Where subsection (2) above requires the Secretary of State to lay before Parliament the draft of an order increasing any sum that could be reduced under section 154(1) below, the order may make such alteration to that sum as reflects the combined effect of that increase and of any reduction that could be made under that subsection.

(7)If the Secretary of State considers it appropriate to do so, he may include in the draft of an up-rating order, in addition to any other provisions, provisions increasing any of the sums for the time being specified in regulations under Part VII of the Contributions and Benefits Act [F34or under the Jobseekers Act 1995,] [F35, the State Pension Credit Act 2002 or Part 1 of the Welfare Reform Act 2007] [F36or Part 1 of the Welfare Reform Act 2012] or which are additions to income support under regulations made under section 89 of the 1986 Act.

[F37The reference to regulations under the State Pension Credit Act 2002 does not include those prescribing the amounts mentioned in section 150A(1)(d) below.]

F38(7A). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8)The Secretary of State shall lay with any draft order under this section a copy of a report by the Government Actuary or the Deputy Government Actuary giving that Actuary's opinion on the likely effect on the National Insurance Fund of such parts of the order as relate to sums payable out of that Fund.

(9)If a draft order laid before Parliament in pursuance of this section is approved by a resolution of each House, the Secretary of State shall make the order in the form of the draft.

(10)[F39Subject to subsection (10ZA),] an order under this section—

(a)shall be framed so as to bring the alterations to which it relates into force—

(i)in the week beginning with the first Monday in the tax year [F40following that in which the order is made]; or

(ii)on such earlier date in April as may be specified in the order;

(b)may make such transitional provision as the Secretary of State considers expedient in respect of periods of entitlement—

(i)to [F41working families' tax credit];

(ii)to [F41disabled person's tax credit]; or

(iii)to statutory sick pay, running at the date when the alterations come into force.

[F42(10ZA)An order under this section shall be framed so that—

(a)any alteration to any of the sums referred to in subsection (1)(n) or otherwise specified in regulations under Part 1 of the Welfare Reform Act 2012 (universal credit) comes into force in relation to a person on the relevant day; and

(b)any other alteration to which the order relates comes into force, for the purposes of determining the amount of universal credit to which a person is entitled, on the relevant day.

(10ZB)In subsection (10ZA) “relevant day”, in relation to a person, means the first day of the first universal credit assessment period in respect of the person which begins on or after—

(a)the Monday of the week specified in subsection (10)(a)(i), or

(b)any earlier date specified under subsection (10)(a)(ii).]

[F43(10A) Where a member of [F44a scheme which was at a time before [F456 April 2012 (the date appointed for the commencement of section 15(1) of the Pensions Act 2007)]] an appropriate personal pension scheme or a money purchase contracted-out scheme continues in employment after attaining pensionable age and the commencement of his pension under the scheme is postponed, the preceding provisions of this section shall have effect as if—

(a)the guaranteed minimum pension to which he is treated as entitled by virtue of section 48(2)(a) of the Pensions Act were subject to increases in accordance with the provisions of section 15(1) of that Act; and

(b)the amounts of any notional increases referred to in paragraph (a) above were subject to annual up-rating in the same way as if they were sums to which subsection (1)(e)(i) above applied.]

[F46(10B)Subsection (10A) does not have effect unless—

(a)the member became entitled to a Category A or Category B retirement pension before the day on which section 2(2) of the Pensions Act 2011 comes into force, and

(b)the member's postponed pension under the scheme became payable before that day.

(10C)In subsection (10B)—

(a)a reference to becoming entitled to a pension before a day includes a reference to becoming entitled on or after that day to the payment of a pension in respect of a period before that day;

(b)a reference to a pension becoming payable before a day includes a reference to a pension becoming payable on or after that day in respect of a period before that day.]

(11)So long as sections 36 and 37 of the M1National Insurance Act 1965 (graduated retirement benefit) continue in force by virtue of regulations made under Schedule 3 to the M2Social Security (Consequential Provisions) Act 1975 or under Schedule 3 to the Consequential Provisions Act, regulations may make provision for applying the provisions of this section—

[F47(a)to the amount of graduated retirement benefit payable for each unit of graduated contributions,

(b)to increase of such benefit under any provisions made by virtue of section 24(1)(b) of the Social Security Pensions Act 1975 or section 62(1)(a) of the Contributions and Benefits Act, and

(c)to any addition under section 37(1) of the National Insurance Act 1965 (addition to weekly rate of retirement pension for widows and widowers) to the amount of such benefit.]

[F48(12)So long as sections 36 and 37 of the National Insurance Act 1965 continue in force as mentioned in subsection (11), this section applies as if subsections (1) and (3) included the sums mentioned in subsection (13).

(13)Those sums are lump sums to which surviving spouses or civil partners will become entitled, by virtue of regulations made under section 62(1)(c) of the Contributions and Benefits Act, on becoming entitled to—

(a)a Category A or Category B retirement pension; or

(b)graduated retirement benefit.]

Textual Amendments

F1S. 150(1)(a)(i)(ii) substituted (with effect in relation to the tax year 2010-11 and subsequent tax years) by Pensions Act 2007 (c. 22), ss. 6(2)(a), 30(1)(a)(3) (with ss. 5(3)-(7), 6(7)); S.I. 2010/2650

F3S. 150(1)(ab) inserted (with effect in relation to the tax year 2010-11 and subsequent tax years) by Pensions Act 2007 (c. 22), ss. 6(2)(b), 30(1)(a)(3) (with ss. 5(3)-(7), 6(7)); S.I. 2010/2650

F4S. 150(1)(ac) inserted (6.4.2016) by Pensions Act 2014 (c. 19), s. 56(4), Sch. 12 para. 70 (with Sch. 12 para. 87)

F6S. 150(1)(dza) inserted (18.11.2004 for specified purposes, 6.4.2005 in so far as not already in force) by Pensions Act 2004 (c. 35), s. 322(3)(a), Sch. 11 para. 21(a)

F9Words in s. 150(1)(da) substituted (18.11.2004 for specified purposes, 6.4.2005 in so far as not already in force) by Pensions Act 2004 (c. 35), s. 322(3)(a), Sch. 11 para. 21(b)

F10Words in s. 150(1)(e)(i) substituted (7.2.94) by Pension Schemes Act 1993 (c. 48), s. 193(2), Sch. 8 para. 28(a); S.I. 1994/86, art. 2

F11Words in s. 150(1)(e)(i) substituted (6.4.2012) by Pensions Act 2011 (c. 19), ss. 2(1)(a), 38(4); S.I. 2011/3034, art. 4(a)

F12S. 150(1)(f) repealed (6.4.2003) by Tax Credits Act 2002 (c. 21), s. 61, Sch. 6; S.I. 2003/938, art. 2, Sch. (with art. 3)

F19S. 150(1)(l) inserted (2.7.2002 for specified purposes, 6.10.2003 in so far as not already in force) by State Pension Credit Act 2002 (c. 16), s. 22(3), Sch. 2 para. 16(2); S.I. 2002/1691, art. 2(l); S.I. 2003/1766, art. 2(a)

F20Words in s. 150(1)(l) inserted (with effect in relation to the tax year 2007-08 and subsequent tax years) by Pensions Act 2007 (c. 22), ss. 6(2)(c), 30(1)(a)(3) (with s. 6(8))

F23S. 150(1)(o) inserted (8.4.2013 for specified purposes, 10.6.2013 in so far as not already in force) by Welfare Reform Act 2012 (c. 5), s. 150(3), Sch. 9 para. 17(a); S.I. 2013/358, art. 7(1)(2)(k), Sch. 3; S.I. 2013/1250, art. 2

F26S. 150(1A)(1B) inserted (6.4.2012) by Pensions Act 2011 (c. 19), ss. 2(1)(b), 38(4); S.I. 2011/3034, art. 4(a)

F28Words in s. 150(3)(a) substituted (with effect in relation to the tax year 2010-11 and subsequent tax years) by Pensions Act 2007 (c. 22), ss. 6(3)(a), 30(1)(a)(3) (with ss. 5(3)-(7), 6(7)); S.I. 2010/2650

F29Words in s. 150(3)(a) inserted (with effect in relation to the tax year 2010-11 and subsequent tax years) by Pensions Act 2007 (c. 22), ss. 6(3)(a), 30(1)(a)(3) (with ss. 5(3)-(7), 6(7)); S.I. 2010/2650

F31Word in s. 150(3)(b) inserted (with effect in relation to the tax year 2010-11 and subsequent tax years) by Pensions Act 2007 (c. 22), ss. 6(3)(b), 30(1)(a)(3) (with ss. 5(3)-(7), 6(7)); S.I. 2010/2650

F32Word in s. 150(3)(b) inserted (18.11.2004 for specified purposes, 6.4.2005 in so far as not already in force) by Pensions Act 2004 (c. 35), s. 322(3)(a), Sch. 11 para. 21(c)

F33Words in s. 150(3)(b) substituted (8.4.2013 for specified purposes, 10.6.2013 in so far as not already in force) by Welfare Reform Act 2012 (c. 5), s. 150(3), Sch. 9 para. 17(b); S.I. 2013/358, art. 7(1)(2)(k), Sch. 3; S.I. 2013/1250, art. 2

F37Words in s. 150(7) inserted (with effect in relation to the tax year 2007-08 and subsequent tax years) by Pensions Act 2007 (c. 22), ss. 6(4), 30(1)(a)(3) (with s. 6(8))

F39Words in s. 150(10) inserted (26.11.2014 with effect in accordance with reg. 1(2) of the amending S.I.) by The Universal Credit and Miscellaneous Amendments (No.2) Regulations 2014 (S.I. 2014/2888), regs. 1(1), 7(1)(a)(i)

F40Words in s. 150(10)(a)(i) inserted (with effect in accordance with s. 5(3)-(7)) by Pensions Act 2007 (c. 22), s. 30(1)(a)(3), Sch. 1 para. 21; S.I. 2010/2650

F41Words in s. 150(10)(b) substituted (5.10.1999) by Tax Credits Act 1999 (c. 10), s. 20(2), Sch. 1 paras. 1, 3(e)

F42S. 150(10ZA)(10ZB) inserted (26.11.2014 with effect in accordance with reg. 1(2) of the amending S.I.) by The Universal Credit and Miscellaneous Amendments (No.2) Regulations 2014 (S.I. 2014/2888), regs. 1(1), 7(1)(a)(ii)

F46S. 150(10B)(10C) inserted (6.4.2012) by Pensions Act 2011 (c. 19), ss. 2(2), 38(4); S.I. 2011/3034, art. 4(a)

F47Words in s. 150(11) substituted (19.7.1995) by Pensions Act 1995 (c. 26), ss. 131(2), 180(2)

Modifications etc. (not altering text)

C4S. 150 modified (with effect for the tax year ending 5.4.2010) by Welfare Reform Act 2009 (c. 24), ss. 23, 61(1)

Marginal Citations