[F1Adjustment of personal benefit under Parts II and III of the Contributions and Benefits Act where other personal benefit under those Parts or graduated retirement benefit is payable]

4.—[F2(1) Subject to paragraphs (2), (3) and (4) and regulation 12, an adjustment shall be made in accordance with paragraph (5) where either—

(a)two or more personal benefits (whether of the same or a different description) are, or but for this regulation would be, payable under Parts II and III of the Contributions and Benefits Act (which relate to benefits other than industrial injuries benefits)[F3, Part 1 of the Welfare Reform Act][F4, Part 1 of the Pensions Act 2014] [F5or under the Jobseekers Act] for any period; or

(b)graduated retirement benefit is payable under sections 36 and 37 of the National Insurance Act 1965 together with one or more personal benefits (whether of the same or a different description) which are, or but for this regulation would be, payable under Parts II and III of the Contributions and Benefits Act for any period.]

(2) Paragraph (1) shall not require the adjustment of, or by reference to—

(a)a death grant;

(b)a maternity grant;

(c)any other sum paid otherwise than in respect of a period;

(d)an earnings-related supplement or earnings-related addition to any benefit (except as provided by regulation 5 and in the case of [F6severe disablement allowance] or [F7carer’s allowance]);

(e)an attendance allowance;

(f)[F8additional pension] or graduated retirement benefit (except as provided by paragraph (4) [F9and (4A)]);

(g)[F10disability living allowance].

[F11(2A) Paragraph (1) shall not require an adjustment of widow’s pension reduced in accordance with section 39(4) of the Contributions and Benefits Act only by reference to long-term incapacity benefit calculated in accordance with section 40(5)(b) of that Act.]

(3) Paragraph (1) shall require an adjustment of age addition only by reference to another age addition.

(4) [F12Except where paragraph (4A) applies,] where there are payable 2 or more personal benefits to which this regulation applies with which [F13additional pension] or graduated retirement benefit is payable as part of the rate of benefit or as an increase of benefit, or, in a case where the person entitled to receive the benefits is over pensionable age and one or more of the benefits includes either additional component or graduated retirement benefit while another of the benefits is payable at the rate referred to in section 14(6) or 15(4) of the Act, then the following provisions shall apply—

(a)for the purposes of adjustment falling to be made under paragraph (5) that [F14additional pension] or graduated retirement benefit shall be treated as part of the personal benefit with which it is so payable;

(b)the provisions of sub-paragraph (a) shall apply before any further adjustment under these regulations; and

(c)for the purpose of any such further adjustment, the beneficiary shall be treated as having a single long-term benefit inclusive of whichever before adjustment under sub-paragraph (a) is the highest of the following amounts—

(i)the highest [F15additional pension] payable, or

(ii)the highest graduated retirement benefit payable, or

(iii)the highest total of [F16additional pension] and graduated retirement benefit payable together as part of the rate of and as an increase of any of those personal benefits.

[F17(4A) Where the person is entitled to additional pension, a state pension under Part 1 of the Pensions Act 2014 and either widow’s pension or widowed mother’s allowance, paragraph (1) shall require the adjustment of additional pension.]

(5) Where an adjustment falls to be made in accordance with this paragraph and—

(a)one of the benefits is a contributory benefit and one is a non-contributory benefit, the non-contributory benefit shall be adjusted by deducting from it the amount of the contributory benefit and only the balance, if any, shall be payable.

(b)sub-paragraph (a) above does not apply, if one of the benefits is payable on a weekly basis—

(i)where the beneficiary has made application, before the payment is made, to have the benefit payable on a weekly basis adjusted, it shall be adjusted by deducting from it the amount of the other benefit and only the balance of it, if any, shall be payable,

(ii)in any other case, the benefit not payable on a weekly basis shall be adjusted by deducting from it the amount of the other benefit and only the balance of it, if any, shall be payable;

(c)sub-paragraphs (a) and (b) above do not apply, the amount payable in respect of the benefits in question shall be an amount equal to that which would but for this provision be payable in respect of—

(i)one of them, if they would have been payable at the same rate, or

(ii)the higher or highest of them, if they would have been payable at different rates,

so however that in a case where more than 2 benefits would be payable then the total amount payable shall not exceed the amount which would be ascertained under sub-paragraph (c).

[F18(6) For the purposes of this regulation—

“additional pension” means a pension payable with a personal benefit under Part II of the Contributions and Benefits Act or an additional rate; and

“additional rate” means an additional amount equal to the rate paid or payable as an additional pension with invalidity benefit immediately before 13th April 1995 which is payable after that date pursuant to regulation 18 of the Social Security (Incapacity Benefit) (Transitional) Regulations 1995.]

Textual Amendments

F4Words in reg. 4(1)(a) inserted (coming into force in accordance with art. 1(2)(b) of the amending S.I.) by The Pensions Act 2014 (Consequential, Supplementary and Incidental Amendments) Order 2015 (S.I. 2015/1985), arts. 1(2)(b), 4(3)(a)

F8Words in reg. 4(2)(f) substituted (6.4.1987) by Social Security Act 1986 (c. 50), reg. 1, s. 18(1)

F9Words in reg. 4(2)(f) inserted (coming into force in accordance with art. 1(2)(b) of the amending S.I.) by The Pensions Act 2014 (Consequential, Supplementary and Incidental Amendments) Order 2015 (S.I. 2015/1985), arts. 1(2)(b), 4(3)(b)

F12Words in reg. 4(4) inserted (coming into force in accordance with art. 1(2)(b) of the amending S.I.) by The Pensions Act 2014 (Consequential, Supplementary and Incidental Amendments) Order 2015 (S.I. 2015/1985), arts. 1(2)(b), 4(3)(c)

F13Words in reg. 4(4) substituted (6.4.1987) by Social Security Act 1986 (c. 50), reg. 1, s. 18(1)

F14Words in reg. 4(4)(a) substituted (6.4.1987) by Social Security Act 1986 (c. 50), reg. 1, s. 18(1)

F15Words in reg. 4(4)(c)(i) substituted (6.4.1987) by Social Security Act 1986 (c. 50), reg. 1, s. 18(1)

F16Words in reg. 4(4)(c)(iii) substituted (6.4.1987) by Social Security Act 1986 (c. 50), reg. 1, s. 18(1)

F17Reg. 4(4A) inserted (coming into force in accordance with art. 1(2)(b) of the amending S.I.) by The Pensions Act 2014 (Consequential, Supplementary and Incidental Amendments) Order 2015 (S.I. 2015/1985), arts. 1(2)(b), 4(3)(d)