3.—(1) In this article, “Schedule 4” means Schedule 4 to the 1975 Act(1).
(2) The sums specified in paragraph (3) below shall be increased from and including the respective dates specified in article 5 below; and Schedule 4 shall accordingly have effect as set out in Schedule 1 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.
4.—(1) The sums specfied in paragraphs (2) and (3) below shall be increased from and including the respective dates specified in article 5 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 £39.45 there shall be substituted the sum of £41.80.
(b)except so far as mentioned in sub-paragraph (a) above, for the sum of £41.15 there shall be substituted the sum of £43.60.
(3) It is hereby directed(2) that the sums which are –
(a)the additional pensions in the rates of long-term benefits calculated by reference to any final relevant year earlier than the tax year 1988/89,
(b)the increases in the rates of retirement pensions under Schedule 1 to the Pensions Act (increases of pension where pensioner defers retirement), and
(c)(i)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)); 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 section 126A of the 1975 Act(3) or section 63 of the 1986 Act,
shall in each case be increased by 5.9 per cent. of their amount apart from this Order.
5.—(1) The following provisions of this article specify the date on which the increases 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.
(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 Act(4), the increases in the sums mentioned in articles 3, 4 and 7 for Category A and B retirement pension and graduated retirement benefit (together with, where appropriate, increases for dependents) shall take effect on 13th April 1989 and in relation to all other cases the increases in such sums shall take effect on 10th April 1989.
(3) The increase in the sums mentioned in article 4(3)(c) shall take effect on 10th April 1989.
(4) The increases in the sums specified for the rate of maternity allowance, widow’s allowance(5), widowed mother’s allowance, widow’s pension, Category C and D retirement pension, child’s special allowance(6), 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 10th April 1989.
(5) The increases in 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) (together with, where appropriate, increases for dependants), disablement benefit (together with increases of disablement pension), maximum disablement gratuity under section 57(5) of the 1975 Act(7), increase of unemployability supplement under section 59 of the 1975 Act(8) and maximum, under section 91(1) of the 1975 Act, of the aggregate of weekly benefit payable for successive accidents, shall in all cases take effect from 12th April 1989.
(6) Where a person’s 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 Act(9) 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 10th April 1989 and where it does not fall to be so increased the sum so specified shall take effect on 13th April 1989.
(7) The increases in the sums specified for the rate 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 13th April 1989.
6. In the Industrial Injuries and Diseases (Old Cases) Act 1975(10) the sum of £24.75 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 increased; and from and including 12th April 1989 for that sum in section 2(6)(c), and from and including 13th April 1989 for that sum in section 7(2)(b), there shall be substituted the sum of £26.20.
7.—(1) In the National Insurance Act 1965(11) the sum of 5.39 pence referred to in section 36(1) (graduated retirement benefit) shall be increased by 5.9 per cent.; and from and including 10th April 1989 the reference in that provision to that sum shall accordingly have effect as a reference to 5.71 pence
(2) It is hereby directed that the sums which are the increases of graduated retirement benefit under Schedule 2 to the Social Security (Graduated Retirement Benefit) (No.2) Regulations 1978(12) (increases for deferred retirement) shall be increased by 5.9 per cent. of their amount apart from this Order.
8. In regulation 2 of the Child Benefit and Social Security (Fixing and Adjustment of Rates) Regulations 1976(13) (weekly rates of child benefit) –
(a)in paragraph (1), the sum specified is £7.25; and
(b)in paragraph (2), for the sum of £4.90, there shall be substituted the sum of £5.20.
9.—(1) The sums specified in section 7(1) of the Social Security and Housing Benefits Act 1982(14) (relationship between rates of payment of statutory sick pay and employees' normal weekly earnings) shall be increased in accordance with the following provisions of this article.
(2) In section 7(1)(a) for the sums of £49.20 and £79.50 there shall be substituted the sums of £52.10 and £84.00 respectively.
(3) In section 7(1)(b) for the sum of £34.25 there shall be substituted the sum of £36.25.
10. The sum specified in regulation 6 of the Statutory Maternity Pay (General) Regulations 1986(15) (lower rate of statutory maternity pay) shall be increased by the substitution for the sum of £34.25 of the sum of £36.25.
11.—(1) The sum specified in subsection (1) of section 30 of the 1975 Act (Category A and B retirement pensions where pensioner has earnings) 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 Act(16) (earnings limits for child dependency increases shall be increased from £90, £11 and £90 to £95, £12 and £95 respectively.
12. Where in relation to statutory sick pay a period of entitlement as between an employer and an employee is running at 6th April 1989 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 £79.50, they shall be treated as not less than £84.00 for the remainder of that period.
Schedule 4 was amended by section 21(1) and (2) of, and Schedules 4 and 5 to, the Child Benefit Act 1975 (c. 61), section 22(2) of, and paragraphs 62 and 63 of Schedule 4 to, the Social Security Pensions Act 1975, paragraph 13 of Schedule 1 to the Social Security Act 1979 (c. 18) and the Social Security Benefits Up-rating (No. 2) Order 1987 (S.I. 1987/1978).
See section 23(2) and (3) of the Social Security Pensions Act 1975 (c. 60), as amended by the Social Security Act 1986, Schedule 10, paragraph 91.
Section 126A was inserted by section 12 of the Social Security Act 1979 (c. 18) and repealed by the Social Security Act 1986, section 86, Schedule 11.
Section 14(6) is amended by the Social Security Pensions Act 1975 (c. 60), section 65(1), Schedule 4, paragraph 39)) and the Social Security Act 1979 (c. 18), section 21(4), Schedule 3, paragraph 6; and section 15(4) is amended by the Social Security Pensions Act 1975, section 65(1), Schedule 4, paragraph 40(c) and the Social Security Act 1979, section 21(4), Schedule 3, paragraph 7.
Widow’s allowance was replaced as from 11th April 1988 by Widow’s Payment (section 36(1) and (2) of the Social Security Act 1986 (c. 50)) except in the case of widows whose husbands died before that date (regulation 2 of S.I. 1987/1692).
Child’s special allowance was abolished except for existing beneficiaries as from 6th April 1987 (section 40 of the Social Security Act 1986).
Repealed by the Social Security Act 1986 (c. 50), section 86, Schedule 11; but saved in certain circumstances by S.I. 1986/1561, regulation 13.
Repealed, except for existing beneficiaries, by the Social Security Act 1986;see section 39, Schedule 3, paragraph 4.
Section 28(7) is amended by the Social Security (No. 2) Act 1980 (c. 39), section 3(3).
1975 c. 16. Sections 2(6)(c) and 7(2)(b) were amended by the Social Security Benefits Up-rating (No. 2) Order 1987 (S.I. 1987/1978).
1965 c. 51. Section 36 was repealed by the Social Security Act 1973 (c. 38) but subsection (1) is now continued in force by regulation 3 of the Social Security (Graduated Retirement Benefit) (No. 2) Regulations 1978 (S.I. 1978/393) in the modified form set out in the Schedule to those Regulations as amended by article 6 of the Social Security Benefits Up-rating (No. 2) Order 1987 (S.I. 1987/1978).See also regulation 2 of those Regulations.
S.I. 1978/393.
S.I. 1976/1267; the relevant amending instruments are S.I. 1977/1328, 1980/110, 1985/1243, 1986/1172 and 1987/1978.
1982 c. 24; section 7(1) was substituted by regulation 2 of the Statutory Sick Pay (Rate of Payment) Regulations 1987 (S.I. 1987/33).
S.I. 1986/1960.
Section 41(2B) was inserted by the Health and Social Security Act 1984 (c. 48), section 13, Schedule 5, paragraph 3(c).