(This note is not part of the Order)
This Order is made following a review by the Secretary of State under section 148A(1) of the Social Security Administration Act 1992 (c. 5) of the general level of earnings in Great Britain with a view to determining whether, and if so by how much, the amount of the low earnings threshold for the purposes of the Social Security Contributions and Benefits Act 1992 (c. 4) should be increased for future tax years. As a result of that review, it appears to the Secretary of State that the general level of such earnings during the period from 1st October 2001 to 30th September 2002 has increased by 3.6%.
This Order directs that the low earnings threshold for the tax years following 2002–03 shall be £11,200. The threshold of the tax year 2001–02 was £10,800, by virtue of S.I. 2002/36. The low earnings threshold is the amount by reference to which the three surplus earnings bands are determined for the purpose of calculating the additional pension (the state second pension) in a state retirement pension.