1987 No. 1978
The Social Security Benefits Up-rating (No.2) Order 1987
Made
Coming into force
for the purposes of articles 1 and 9
for the purposes of articles 8 and 11
for all other purposes
Whereas, the Secretary of State for Social Services having made a review under section 63(1) of the Social Security Act 19861, a draft of the following order was laid before Parliament in accordance with the provisions of section 63(2) and section 83(3)(d) of that Act and approved by resolution of each House of Parliament;
Now, therefore, the Secretary of State for Social Services, with the consent of the Treasury2, in exercise of the powers conferred upon him by section 63 of the Social Security Act 1986, and of all other powers enabling him in that behalf, hereby makes the following Order:
Citation, commencement and interpretation1
1
This Order may be cited as the Social Security Benefits Up-rating (No.2) Order 1987 and shall come into force for the purposes of articles 1 and 9 on 3rd April 1988, for the purposes of articles 8 and 11 on 6th April 1988 and for all other purposes on 11th April 1988.
Alterations in rates or amounts of certain benefits under the 1975 Act2
1
In this article, “Schedule 4” means Schedule 4 to the 1975 Act5
2
The sums specified in paragraph (3) below shall be altered from and including the respective dates specified in article 4 below; and Schedule 4 shall accordingly have effect as set out in the Schedule to this Order.
3
The sums mentioned in paragraph (2) above are the sums specified in Parts I, III, IV and V of Schedule 4 (contributory periodical benefits, non-contributory periodical benefits, increase of benefits for dependants and rates or amounts of industrial injuries benefits, respectively), except in Part III the sum specified for age addition.
Increase of rates or amounts of certain benefits under the Pensions Act3
1
The sums mentioned in paragraphs (2) to (5) below shall be increased from and including the respective dates specified in article 4 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 £37.85 there shall be substituted the sum of £39.45.
b
except so far as mentioned in sub-paragraph (a) above, for the sum of £39.50 there shall be substituted the sum of £41.15.
3
It is hereby directed that the sums which are the additional pensions in the rates of long-term benefits calculated by reference to any final relevant year earlier than the tax year 1987/1988 shall be increased by 4.2 per cent. of their amount apart from this Order.
4
It is hereby directed that the sums payable by way of increases of retirement pensions under Schedule 1 to the Pensions Act (increase of pension where pensioner defers retirement) shall be increased by 4.2 per cent.
5
It is hereby declared that an amount equal to 4.2 per cent. of the aggregate amount of the sums—
a
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)); and
b
payable to such a person as part of his Category A or Category B retirement pension by virtue of an order made under section 126A of the 1975 Act6 or section 63 of the 1986 Act,
shall be payable by way of an increase of such a person’s Category A or Category B retirement pension.
Dates on which sums specified for rates or amounts of benefit under the 1975 Act or the Pensions Act are altered by this Order4
1
The alterations made by this Order in the sums specified for rates or amounts of benefit under the 1975 Act or the Pensions Act shall take effect for each case on the date specified in relation to such case in the following provisions of this article.
2
In relation to the case of a person over pensionable age who has not retired from regular employment and for whom the rate of unemployment benefit, sickness benefit or invalidity pension falls to be calculated in accordance with section 14(6) or 15(4) of the 1975 Act7, the increases in the sums mentioned in articles 2, 3 and 6 for Category A and B retirement pension and graduated retirement benefit (together with, where appropriate, increases for dependants) shall take effect on 14th April 1988 and in relation to all other cases the increases in such sums shall take effect on 11th April 1988.
3
The increase mentioned in article 3(5) shall take effect on 11th April 1988.
4
The alterations in the amounts of maternity allowance, widow’s allowance8, widowed mother’s allowance, widow’s pension, Category C and D retirement pension, child’s special allowance9, attendance allowance, invalid care allowance (except in a case where the Secretary of State has made arrangements for it to be paid on a Wednesday), guardian’s allowance and industrial death benefit by way of widow’s and widower’s pension and allowance in respect of children (together with, where appropriate, increases for dependants) shall in all cases take effect on 11th April 1988.
5
The sums specified for the rate of mobility allowance, invalid care allowance (in a case where the Secretary of State has made arrangements for it to be paid on a Wednesday), disablement benefit (together with increases of disablement pension), maximum disablement gratuity under section 57(5) of the 1975 Act10, increase of unemployability supplement under section 59 of the 1975 Act11 and maximum, under section 91(1) of the 1975 Act, of the aggregate of weekly benefit payable for successive accidents, shall be increased in all cases with effect from 13th April 1988.
6
In relation to the case of a person whose weekly rate of Category A or B retirement pension falls to be increased under the provisions of section 28(7) or 29(8) of the 1975 Act12 by reference to the weekly rate of invalidity allowance to which he was previously entitled, the increase in the sum specified for the appropriate rate of invalidity allowance shall take effect on 11th April 1988 and in relation to all other cases the increase in such sum shall take effect on 14th April 1988.
7
The alterations in the rates or amounts of unemployment and sickness benefit, invalidity pension and severe disablement allowance (together with, where appropriate, increase for dependants), shall take effect in all cases on 14th April 1988.
Increase in rates of certain benefits under the Industrial Injuries and Diseases (Old Cases) Act 19755
In the Industrial Injuries and Diseases (Old Cases) Act 197513 the sum of £23.75 referred to in section 2(6)(c) (maximum weekly rate of lesser incapacity allowance supplementing workmen’s compensation) and section 7(2)(b) (industrial diseases benefit schemes: weekly rate of allowance payable where disablement is not total) shall be further increased; and from and including 13th April 1988 the reference to that sum in section 2(6)(c), and from and including 14th April 1988 the reference to that sum in section 7(2)(b), shall accordingly have effect as references to £24.75.
Increase in rate of graduated retirement benefit and increments thereof6
1
In the National Insurance Act 196514 the sum of 5.17 pence referred to in section 36(1) (graduated retirement benefit) shall be increased by 4.2 per cent.; and from and including 11th April 1988 the reference in that provision to that sum shall accordingly have effect as a reference to 5.39 pence.
2
It is hereby directed that the aggregate amount of any increases of graduated retirement benefit payable under Schedule 2 to the Social Security (Graduated Retirement Benefit) (No.2) Regulations 197815 (increases for deferred retirement) shall be increased by 4.2 per cent.
Sum specified for child benefit7
In regulation 2 of the Child Benefit and Social Security (Fixing and Adjustment of Rates) Regulations 197616 (weekly rates of child benefit)—
a
in paragraph (1), the sum specified is £7.25; and
b
in paragraph (2), the sum specified shall be increased from £4.70 to £4.90.
Statutory Sick Pay8
1
The sums specified in section 7(1) of the Social Security and Housing Benefits Act 198217 (relationship between rates of payment of statutory sick pay and employees' normal weekly earnings) shall be increased in accordance with the provisions of this article with effect from 6th April 1988.
2
The sums specified in section 7(1)(a) shall be increased from £47.20 and £76.50 to £49.20 and £79.50 respectively.
3
The sum specified in section 7(1)(b) shall be increased from £32.85 to £34.25.
Statutory Maternity Pay9
The sum specified in regulation 6 of the Statutory Maternity Pay (General) Regulations 198618 (lower rate of statutory maternity pay) shall be increased from £32.85 to £34.25 with effect from 3rd April 1988.
Earnings Limits10
1
The sum specified in subsection (1) of section 30 of the 1975 Act is £75 and the sums specified—
a
in paragraph (a) of that subsection, are £4, 5 pence and 10 pence respectively, and
b
in paragraph (b) of that subsection, are £4, 5 pence, 10 pence, £4, 5 pence and 5 pence respectively.
2
The sums specified in section 41(2B) of the 1975 Act19 (earnings limits for child dependency increases) shall be increased from £85, £10 and £85 to £90, £11 and £90 respectively.
Transitional provision11
Where in relation to statutory sick pay a period of entitlement as between an employer and an employee is running at 6th April 1988 and the employee’s normal weekly earnings under the contract of service with that employer are not less than, or treated for the purpose of section 7(1) of the Social Security and Housing Benefits Act 1982 as not less than £76.50, they shall be treated as not less than £79.50 for the remainder of that period.
Revocations12
The Social Security Benefits Up-rating Order 198720 is hereby revoked.
Signed by authority of the Secretary of State for Social Services.
SCHEDULESCHEDULE 4 TO THE 1975 ACT AS AMENDED BY THIS ORDER
SCHEDULE 4RATES OF BENEFITS, GRANTS AND INCREASES FOR DEPENDANTS
PART Icontributory periodical benefits (sections 14—31)
Description of benefit
Weekly rate
1
Unemployment or sickness benefit (section 14).
a
unemployment benefit …£32.75.
b
sickness benefit …£31.30.
3
Invalidity allowance (section 16).
a
higher rate …£8.65.
b
middle rate …£5.50.
c
lower rate …£2.75.
(the appropriate rate being determined in accordance with section 16(2)
21).
4
Maternity allowance (section 22).
£31.30.
5
Widow’s allowance (section 24).
£57.65.
9
Category B retirement pension where section 29(7)(a)(i) applies.
£24.75.
10
Child’s special allowance (section 31).
£8.40.
PART 1A22widow’s payment
Widow’s payment (section 24)£1,000.00
PART IIInon-contributory periodical benefits (sections 34—40)
Description of benefit
Weekly rate
1
Attendance allowance (section 35).
a
higher rate …£32.95.
b
lower rate …£22.00.
(the appropriate rate being determined in accordance with section 35(3)
23).
2
Severe disablement allowance (section 36).
£24.75.
3
Invalid care allowance (section 37).
£24.75.
3A
Mobility allowance (section 37A).
£23.05
4
Guardian’s allowance (section 38).
£8.40.
5
Category C retirement pension (section 39).
a
lower rate …£14.80.
b
higher rate …£24.75.
(the appropriate rate being determined in accordance with section 39(2)).
5A
Category D retirement pension (section 39)24.
The higher rate for Category C retirement pension under paragraph 5 above.
6
Age addition (to a pension of any category, and otherwise under section 40).
£0.25.
PART IVincreases for dependants (sections 41—49)
Benefit to which increase applies
Increase for qualifying child
Increase for adult dependant
(1)
(2)
(3)
£
£
1
Unemployment or sickness benefit—
a
unemployment benefit, where the beneficiary is under pensionable age
—
20.20
b
unemployment benefit, where the beneficiary is over pensionable age
8.40
24.75
c
sickness benefit, where the beneficiary is under pensionable age
—
19.40
d
sickness benefit, where the beneficiary is over pensionable age
8.40
23.65
2
Invalidity pension …
8.40
24.75
3
Maternity allowance …
—
19.40
4
Widow’s allowance …
8.40
—
5
Widowed mother’s allowance …
8.40
—
6
Category A or B retirement pension
8.40
24.75
7
Category C retirement pension …
8.40
14.80
8
Child’s special allowance …
8.40
—
9
Severe disablement allowance …
8.40
14.80
10
Invalid care allowance …
8.40
14.80
PART Vrate or amount of industrial injuries benefit
Description of benefit, etc.
Rate or amount
2
Maximum disablement gratuity under section 57(5).
£4,470.00
3
Disablement pension under section 57(6) (weekly rates).
For the several degrees of disablement set out in column (1) of the following Table, the respective amounts in that Table using—
- a
column (2) for any period during which the beneficiary is over the age of 18 or is entitled to an increase of benefit in respect of a child or adult dependant;
- b
column (3) for any period during which the beneficiary is not over the age of 18 and not so entitled;
Table
Degree of disablement
Amount
(1)
(2)
(3)
Per cent.
£
£
100
67.20
41.15
90
60.48
37.04
80
53.76
32.92
70
47.04
28.81
60
40.32
24.69
50
33.60
20.58
40
26.88
16.46
30
20.16
12.35
20
13.44
8.23
4
Unemployability supplement under section 58 (increase of weekly rate of disablement pension).
£41.15.
5
Increase under section 59 of weekly rate of unemployability supplement (early onset of incapacity for work).
a
if on the qualifying date the beneficiary was under the age of 35, or if that date fell before 5th July 1948 … £8.65.
aa
if head (a) above does not apply and on the qualifying date the beneficiary was under the age of 40 and he had not attained pensionable age before 6th April 1979 … £8.65.
b
if heads (a) and (aa) above do not apply and on the qualifying date the beneficiary was under the age of 45… £5.50.
bb
if heads (a), (aa) and (b) above do not apply and on the qualifying date the beneficiary was under the age of 50 and had not attained pensionable age before 6th April 1979 … £5.50.
c
in any other case … £2.75.
7
Maximum increase under section 61 of weekly rate of disablement pension where constant attendance needed.
a
except in cases of exceptionally severe disablement … £26.90.
b
in any case … £53.80.
8
Increase under section 63 of weekly rate of disablement pension (exceptionally severe disablement).
£26.90
10
Increase under section 64 of weekly rate of disablement pension (dependent children).
£8.40
12
Increase under section 66(2) of weekly rate of disablement pension (adult dependant).
£24.75
13
Widow’s pension under section 68 (weekly rates)—
a
initial rate …
£57.65.
b
higher permanent rate …
£41.70.
c
lower permanent rate …
30 per cent. of the sum specified in section 6(1)(a) of the Pensions Act.
14
Widower’s pension under section 69 (weekly rate).
£41.70.
15
Weekly rate of allowance under section 70 in respect of children.
In respect of each qualifying child …£8.40.
16
Maximum under section 91(1) of aggregate of weekly benefit payable for successive accidents.
a
for any period during which the beneficiary is over the age of 18 or is entitled to an increase in benefit in respect of a child or adult dependant … £67.20.
b
for any period during which the beneficiary is not over the age of 18 and not so entitled …£41.15.
(This note is not part of the Order)