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, the sums specified in paragraph (2) shall be increased so that Schedule 4 to the Contributions and Benefits Act (contributory periodical benefits, non-contributory periodical benefits, increases for dependants 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, IV and V of Schedule 4 to the Contributions and Benefits Act except, in—
a
Part III, the sum specified for age addition to a pension of any category and otherwise under section 79 of that Act;
b
Part IV, the sums specified in column (2) (increase for qualifying child); and
c
Part V, the sums specified for the increase in disablement pension for dependent children, widow’s pension (initial rate) and death benefit allowance in respect of children and qualifying young persons21.
Increase in rates or amounts of certain pensions and allowances under the Contributions and Benefits Act4
1
The sums specified in paragraphs (2) to (5) 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 1.2 per cent.
3
In section 44(4) of the Contributions and Benefits Act22 (basic pension in a Category A retirement pension)—
a
for “£99.90” substitute “£101.10”; and
b
for “£113.10” substitute “£115.95”.
4
It is directed23 that the sums which are—
a
additional pensions in long-term benefits calculated by reference to any final relevant year earlier than the tax year 2014-2015;
b
increases in the rates of retirement pensions under Schedule 5 to the Contributions and Benefits Act24 (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 Schedule25 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 be increased by 1.2 per cent.
Increase in rates or amount of certain benefits under the Pension Schemes Act5
1
It is directed30 that the sums specified in paragraph (2) shall be increased from and including the respective dates specified in article 6.
2
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)31 and (3) of that Act) shall be increased by 1.2 per cent. where the increase under section 15(1) is attributable to earnings factors for the tax year 1987-88 and earlier tax years32.
Dates on which sums specified for rates or amounts of benefits under the Contributions and Benefits Act or the Pension Schemes 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 or the Pension Schemes Act shall take effect for each case.
2
Any increases in the sums mentioned in articles 3, 4 and 8 for Category A and Category B retirement pension and graduated retirement benefit together with, where appropriate, any increases for dependants, shall take effect on 6th April 2015.
3
The increases in the sums mentioned in article 5(2) shall take effect on 6th April 2015.
4
Any increases in the sums specified for—
a
the rate of—
i
Category C and Category D retirement pension,
ii
attendance allowance, and
iii
carer’s allowance (except in a case where the Secretary of State has made arrangements for it to be paid on a Wednesday); and
b
any increases in—
i
Category C retirement pension and carer’s allowance referred to in sub-paragraph (a)(i) and (iii), and
ii
widowed mother’s allowance and widowed parent’s allowance,
in respect of dependants,
shall in all cases take effect on 6th April 2015.
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,
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 8th April 2015.
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 Act33 by reference to the weekly rate of invalidity allowance or age addition to long-term incapacity benefit to which he was previously entitled, any increase in such sum shall take effect on 6th April 2015.
7
The changes in the sums specified for the rate of incapacity benefit and severe disablement allowance together with, where appropriate, any increases for dependants, shall take effect in all cases on 9th April 2015.
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 8th April 2015.
9
Any increases in the sums specified in article 3 of this Order, and article 8(b) of the Welfare Benefits Up-rating Order 201534, 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 amount35, 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 6th April 2015;
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 2015,
and for the purpose of this paragraph, “benefit week” has the same meaning as in regulation 2(1) of the Computation of Earnings Regulations.
Earnings Limits7
In section 80(4) of the Contributions and Benefits Act36 (earnings limits in respect of child dependency increases)—
a
for “£225.00”, in both places where it occurs, substitute “£230.00”; and
b
“£30.00” remains unchanged.
Increase in rate of graduated retirement benefit8
1
In section 36(1) of the National Insurance Act 196537 (graduated retirement benefit)—
a
the sum of 13.14 pence shall be increased by 1.2 per cent.; and
b
from and including 6th April 2015 the reference in that provision to that sum shall have effect as a reference to 13.30 pence.
2
The sums which are the increases of graduated retirement benefit under Schedule 2 to the Social Security (Graduated Retirement Benefit) (No. 2) Regulations 197838 (increases for deferred retirement) shall be increased by 1.2 per cent.
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 200539 (increases of graduated retirement benefit and lump sums) shall be increased by 1.2 per cent.
4
The sums which are the additions under section 37(1) of the National Insurance Act 1965 (additions for widows and widowers) shall be increased by 1.2 per cent.
Increase in rates of Disability Living Allowance9
In regulation 4 of the Social Security (Disability Living Allowance) Regulations 199140 (rate of benefit)—
a
in paragraph (1)(a) for “£81.30” substitute “£82.30”;
b
in paragraph (1)(b) for “£54.45” substitute “£55.10”;
c
in paragraph (1)(c) for “£21.55” substitute “£21.80”;
d
in paragraph (2)(a) for “£56.75” substitute “£57.45”; and
e
in paragraph (2)(b) for “£21.55” substitute “£21.80”.
Increase in rates of Personal Independence Payment10
In regulation 24 of the Social Security (Personal Independence Payment) Regulations 201341 (rate of personal independence payment)—
a
in paragraph (1)(a) for “£54.45” substitute “£55.10”;
b
in paragraph (1)(b) for “£81.30” substitute “£82.30”;
c
in paragraph (2)(a) for “£21.55” substitute “£21.80”; and
d
in paragraph (2)(b) for “£56.75” substitute “£57.45”.
Rates of age addition11
1
Subject to paragraph (2), in regulation 10(2) of the Social Security (Incapacity Benefit) Regulations 199442 (increase in rate of incapacity benefit where beneficiary is under prescribed age on the qualifying date)—
a
in sub-paragraph (a) for “£21.25” substitute “£21.50”; and
b
in sub-paragraph (b) for “£10.65” substitute “£10.80”.
2
In the case of a claimant entitled to long-term incapacity benefit the sums specified in regulation 10(2)(a) and (b) shall be increased to “£11.15” and “£6.20” respectively.
Rates of transitional invalidity allowance12
1
Subject to paragraph (2), in regulation 18(2) of the Social Security (Incapacity Benefit) (Transitional) Regulations 199543 (rate of long-term incapacity benefit in transitional cases)—
a
in sub-paragraph (a) for “£21.25” substitute “£21.50”;
b
in sub-paragraph (b) for “£13.70” substitute “£13.90”; and
c
in sub-paragraph (c) for “£6.85” substitute “£6.95”.
2
In the case of a claimant entitled to long-term incapacity benefit the sums specified in regulation 18(2)(a), (b) and (c) shall be increased to “£11.15”, “£6.20” and “£6.20” respectively.
Rates of bereavement benefits13
In the Rate of Bereavement Benefits Regulations 201044—
a
in regulation 2 (rate of widowed mother’s allowance and widow’s pension) for “£111.20” substitute “£112.55”; and
b
in regulation 3 (rate of widowed parent’s allowance and bereavement allowance) for “£111.20” substitute “£112.55”.