PART 2SOCIAL SECURITY BENEFITS AND PENSIONS
Rates or amounts of certain benefits under the Contributions and Benefits Act3
1
From and including the respective dates specified in article 6—
a
the sums specified in paragraph (2) shall be increased; and
b
the sums specified in paragraph 3(a) and (b) of Part III of Schedule 4 to the Contributions and Benefits Act (age related addition – higher and middle rates) shall be reduced19,
so that Schedule 4 to the Contributions and Benefits Act (contributory periodical benefits, non-contributory periodical benefits and rates of industrial injuries benefit), except paragraph 5 of Part III of that Schedule (guardian’s allowance), has effect as set out in Schedule 1 to this Order.
2
The sums mentioned in paragraph (1) are the sums specified in Parts I, III and V of Schedule 4 to the Contributions and Benefits Act except, in—
a
Part III, the sums specified for age related addition (higher and middle rates) and age addition to a pension of any category and otherwise under section 79 of that Act; and
b
Part V, the sums specified for the increases under paragraph 3 of Schedule 7 to the Contributions and Benefits Act of the weekly rate of unemployability supplement, the increase in disablement pension for dependent children, widow’s pension (initial rate) and death benefit allowance in respect of children and qualifying young persons20.
Rates or amounts of certain pensions and allowances under the Contributions and Benefits Act4
1
The sums specified in paragraphs (2) and (3) shall be increased from and including the respective dates specified in article 6.
2
The sums falling to be calculated under paragraph 13(4) of Schedule 7 to the Contributions and Benefits Act (calculation of weekly rate of a beneficiary’s retirement allowance) shall be increased by 1.5 per cent.
3
In section 44(4) of the Contributions and Benefits Act21 (basic pension in a Category A retirement pension)—
a
for “£86.20” substitute “£87.75”; and
b
for “£95.25” substitute “£97.65”.
4
The sums which are—
a
additional pensions in long-term benefits calculated by reference to any final relevant year earlier than the tax year 2009-2010;
b
increases in the rates of retirement pensions under Schedule 5 to the Contributions and Benefits Act22 (pension increase or lump sum where entitlement to retirement pension is deferred);
c
lump sums to which surviving spouses or civil partners will become entitled under paragraph 7A of that Schedule23 on becoming entitled to a Category A or Category B retirement pension (entitlement to lump sum where pensioner’s deceased spouse or civil partner has deferred entitlement); and
d
shall in each case remain unchanged.
Rates or amount of certain benefits under the Pension Schemes Act5
Sums which are payable by virtue of section 15(1) of the Pension Schemes Act (which provides for increases in a person’s guaranteed minimum pension if payment of their occupational pension is postponed after they attain 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 17(2)28 and (3) of that Act) remain unchanged.
Dates on which sums specified for rates or amounts of benefits under the Contributions and Benefits Act are changed by this Order6
1
Paragraphs (2) to (8), which are subject to the provisions of paragraph (9), specify the date on which the changes made by this Order in the sums specified for rates or amounts of benefit under the Contributions and Benefits Act shall take effect for each case.
2
Subject to paragraph (3), any increases in the sums mentioned in articles 3 and 4 for Category A and Category B retirement pension shall take effect on 12th April 2010.
3
In the case of a person over pensionable age—
a
whose entitlement to a Category A retirement pension is deferred; and
b
for whom the rate of short-term incapacity benefit falls to be calculated in accordance with section 30B(3) of the Contributions and Benefits Act29,
any increases in the sums mentioned in articles 3 and 4 for Category A and Category B retirement pensions shall take effect on 15th April 2010.
4
Any increases in the sums specified for the rate of—
a
Category C and Category D retirement pension;
b
attendance allowance; and
c
carer’s allowance (except in a case where the Secretary of State has made arrangements for it to be paid on a Wednesday),
shall in all cases take effect on 12th April 2010.
5
Any increases in the sums specified for—
a
the rate of—
i
carer’s allowance in a case where the Secretary of State has made arrangements for it to be paid on a Wednesday,
ii
disablement benefit,
iii
maximum disablement gratuity under paragraph 9(2) of Schedule 7 to the Contributions and Benefits Act,
iv
industrial death benefit by way of widow’s and widower’s pension and allowance in respect of children and qualifying young persons30,
v
the maximum of the aggregate of weekly benefit payable for successive accidents, under section 107(1) of the Contributions and Benefits Act; and
b
any increases in—
i
the benefits referred to in heads (i), (iii) and (iv) of sub-paragraph (a) in respect of dependants, and
ii
disablement pension,
shall in all cases take effect on 14th April 2010.
6
In any case where a person’s weekly rate of Category A or Category B retirement pension falls to be increased under the provisions of section 47(1) or 48C(2) of the Contributions and Benefits Act31 by reference to the weekly rate of invalidity allowance or age addition to long-term incapacity benefit to which they were previously entitled, any increase in such sum shall take effect on 12th April 2010.
7
The changes in the sums specified for the rate of incapacity benefit and severe disablement allowance shall take effect in all cases on 15th April 2010.
8
The increases in the sums falling to be calculated in accordance with paragraph 13(4) of Schedule 7 to the Contributions and Benefits Act (retirement allowance) shall take effect on 14th April 2010.
9
Any increases in the sums specified in articles 3 and 23(c), in so far as those sums are relevant for the purposes of establishing whether the rate of any benefit is not to be increased in respect of an adult dependant because the earnings of the dependant exceed a specified amount32, shall take effect—
a
except in a case where sub-paragraph (b) applies, on the first day of the first benefit week to commence for the beneficiary on or after 12th April 2010;
b
in a case where regulation 7(b) of the Computation of Earnings Regulations (date on which earnings are treated as paid) applies, on the first day of the first benefit week to commence for the beneficiary on or after 1st April 2010,
and for the purpose of this paragraph, “benefit week” has the same meaning as in regulation 2(1) of the Computation of Earnings Regulations.
Increase in rates of certain compensation and industrial diseases benefits in respect of employment before 5th July 19487
From and including—
a
14th April 2010, for “£53.10” referred to in paragraph 2(6)(c) of Schedule 8 to the Contributions and Benefits Act33 (maximum weekly rate of lesser incapacity allowance supplementing workmen’s compensation);
b
15th April 2010, for that sum referred to in paragraph 6(2)(b) of that Schedule34 (industrial diseases benefit schemes: weekly rate of allowance payable where disablement is not total),
substitute “£53.90”.
Earnings Limits8
In section 80(4) of the Contributions and Benefits Act35 (earnings limits in respect of child dependency increases)—
a
for “£195.00”, in both places where it occurs, substitute “£200.00”; and
b
“£26.00” remains unchanged.
Statutory Sick Pay9
In section 157(1) of the Contributions and Benefits Act36 (rate of payment of statutory sick pay) “£79.15” remains unchanged.
Statutory Maternity Pay10
In regulation 6 of the Statutory Maternity Pay (General) Regulations 198637 (prescribed rate of statutory maternity pay) for “£123.06” substitute “£124.88”.
Statutory Paternity Pay and Statutory Adoption Pay11
In the Statutory Paternity Pay and Statutory Adoption Pay (Weekly Rates) Regulations 200238—
a
in regulation 2(a) (weekly rate of payment of statutory paternity pay) for “£123.06” substitute “£124.88”; and
b
in regulation 3(a) (weekly rate of payment of statutory adoption pay) for “£123.06” substitute “£124.88”.
Rate of graduated retirement benefit12
1
The sum of 11.53 pence in section 36(1) of the National Insurance Act 196539 (graduated retirement benefit) remains unchanged.
2
The sums which are the increases of graduated retirement benefit under Schedule 2 to the Social Security (Graduated Retirement Benefit) (No. 2) Regulations 197840 (increases for deferred retirement) remain unchanged.
3
The sums which are lump sums to which surviving spouses or civil partners will become entitled under Schedule 1 to the Social Security (Graduated Retirement Benefit) Regulations 200541 (increases of graduated retirement benefit and lump sums) remain unchanged.
4
The sums which are the additions under section 37(1) of the National Insurance Act 1965 (additions for widows and widowers) remain unchanged.
Increase in rates of Disability Living Allowance13
In regulation 4 of the Social Security (Disability Living Allowance) Regulations 199142 (rate of benefit)—
a
in paragraph (1)(a) for “£70.35” substitute “£71.40”;
b
in paragraph (1)(b) for “£47.10” substitute “£47.80”;
c
in paragraph (1)(c) for “£18.65” substitute “£18.95”;
d
in paragraph (2)(a) for “£49.10” substitute “£49.85”; and
e
in paragraph (2)(b) for “£18.65” substitute “£18.95”.
Rates of age addition14
1
Subject to paragraph (2), in regulation 10(2) of the Social Security (Incapacity Benefit) Regulations 199443 (increase in rate of incapacity benefit where beneficiary is under prescribed age on the qualifying date)—
a
in sub-paragraph (a) for “£15.65” substitute “£18.65”; and
b
in sub-paragraph (b) for “£6.55” substitute “£9.35”.
2
In the case of a claimant entitled to long-term incapacity benefit, the sums specified in regulation 10(2)(a) and (b)44 shall be reduced to “£15.00” and “£5.80” respectively.
Rates of transitional invalidity allowance15
1
Subject to paragraph (2), in regulation 18(2) of the Social Security (Incapacity Benefit) (Transitional) Regulations 199545 (rate of long-term incapacity benefit in transitional cases)—
a
in sub-paragraph (a) “£18.65” remains unchanged;
b
in sub-paragraph (b) “£12.00” remains unchanged; and
c
in sub-paragraph (c) “£6.00” remains unchanged.
2
In the case of a claimant entitled to long-term incapacity benefit—
a
the sums specified in regulation 18(2)(a) and (b)46 shall be reduced to “£15.00” and “£8.40” respectively; and
b
the sum specified in regulation 18(2)(c) shall be increased to “£5.45”.