Modification of section 150 of the Administration Act2.

(1)

This regulation applies where a claimant is entitled to incapacity benefit or severe disablement allowance which includes an amount under one of the provisions referred to in paragraph .

(2)

The provisions referred to in paragraph (1) are —

(a)

section 69(1)3 of the Contributions and Benefits Act (severe disablement allowance: age related addition);

(b)

regulation 10 of the Social Security (Incapacity Benefit) Regulations 19944 (increase in rate of incapacity benefit etc.); and

(c)

regulation 18(1)(c) of the Social Security (Incapacity Benefit) (Transitional) Regulations 19955 (rate of long-term incapacity benefit in transitional cases).

(3)

Where this regulation applies, section 150 of the Administration Act6 (annual up-rating of benefits) is to have effect as if the following were inserted after subsection (5)—

“(5A)

The Secretary of State may, in respect of each of the tax years beginning with 2009-10 and ending with 2013-14, include in the draft of an uprating order a reduction in an amount under—

(a)

section 69(1) of the Contributions and Benefits Act (severe disablement allowance: age related addition);

(b)

regulation 10 of the Social Security (Incapacity Benefit) Regulations 1994 (increase in rate of incapacity benefit etc.); and

(c)

regulation 18(1)(c) of the Social Security (Incapacity Benefit) (Transitional) Regulations 1995 (rate of long-term incapacity benefit in transitional cases).”.