2024 No. 284
SOCIAL SECURITY

The Social Security Revaluation of Earnings Factors Order 2024

Made
Laid before Parliament
Coming into force
In accordance with section 148(2) of the Social Security Administration Act 19921, the Secretary of State has reviewed the general level of earnings obtaining in Great Britain.
The Secretary of State has concluded, having regard to earlier orders made under section 1482 of that Act, that earnings factors3 for the relevant tax years have not, during the period taken into account for that review, maintained their value in relation to the general level of earnings.
Accordingly, the Secretary of State makes this Order in exercise of the powers conferred by sections 148(3) and (4) and 189(4) and (5) of the Social Security Administration Act 19924.

Citation, commencement and extent1.

(1)

This Order may be cited as the Social Security Revaluation of Earnings Factors Order 2024 and comes into force on 6th April 2024.

(2)

This Order extends to England and Wales and Scotland.

Revaluation of earnings factors2.

Earnings factors for the tax years specified in the Schedule to this Order in so far as they are relevant—

(a)

to the calculation of—

(i)

the additional pension in the rate of any long-term benefit; or

(ii)

any guaranteed minimum pension5; or

(b)

to any other calculation required under Part 3 of the Pension Schemes Act 1993 (schemes that were contracted-out etc. and effects on members’ state scheme rights)6 (including that Part as modified by or under any other enactment),
are directed7 to be increased by the percentage of their amount shown opposite those tax years in that Schedule.

Rounding of fractional amounts3.

Where any earnings factor relevant to the calculation specified in article 2(a)(i), as increased in accordance with this Order, would not but for this article be expressed as a whole number of pounds, it is to be so expressed by rounding down any fraction of a pound less than one half and rounding up any other fraction of a pound.

Signed by authority of the Secretary of State for Work and Pensions

Paul Maynard
Parliamentary Under Secretary of State
Department for Work and Pensions

SchedulePercentage increase of earnings factors for specified tax years

Article 2

Tax year

Percentage increase

1978-1979

1115.4

1979-1980

972.7

1980-1981

796.2

1981-1982

650.6

1982-1983

581.7

1983-1984

533.0

1984-1985

486.1

1985-1986

449.8

1986-1987

404.9

1987-1988

370.1

1988-1989

332.5

1989-1990

290.3

1990-1991

263.8

1991-1992

230.4

1992-1993

210.2

1993-1994

195.4

1994-1995

186.6

1995-1996

174.5

1996-1997

167.0

1997-1998

154.3

1998-1999

143.1

1999-2000

133.3

2000-2001

119.5

2001-2002

111.0

2002-2003

102.3

2003-2004

95.3

2004-2005

88.2

2005-2006

80.7

2006-2007

74.8

2007-2008

67.9

2008-2009

61.2

2009-2010

56.3

2010-2011

54.5

2011-2012

51.0

2012-2013

48.3

2013-2014

45.7

2014-2015

44.4

2015-2016

42.3

2016-2017

39.5

2017-2018

35.9

2018-2019

32.0

2019-2020

28.4

2020-2021

23.4

2021-2022

20.3

2022-2023

15.1

2023-2024

7.6

Explanatory Note
(This note is not part of the Order)

This Order is made following a review under section 148 (revaluation of earnings factors) of the Social Security Administration Act 1992 (c. 5).

This Order applies to earnings factors relevant to the calculation of additional pension in any long-term benefit or of any guaranteed minimum pension or to any other calculation required under Part 3 of the Pension Schemes Act 1993 (c. 48) (“the 1993 Act”). Article 2 provides that, for those purposes, earnings factors for the tax years specified in the Schedule to this Order are to be increased by the percentage of their amount specified in that Schedule; the effect is that earnings factors for those years are revalued at 2023-2024 earnings levels.

Accruals of additional state pension ended with the introduction of new state pension on 6th April 2016. Revaluation of earnings factors is still required for inherited additional state pension in certain circumstances (see sections 48B and 51 of the Social Security Contributions and Benefits Act 1992 (c. 4) (“the Contributions and Benefits Act”)).

The percentages specified in this Order for the tax years from and including 2000-2001 are used in the revaluation of old state scheme pension debits and credits (awarded under section 49(1) of the Welfare Reform and Pensions Act 1999 (c. 30)) in accordance with sections 13 and 14 of, and paragraph 2(6) of each of Schedules 8 and 10 to, the Pensions Act 2014 (c. 19). The percentage specified for 2015-2016 is used to increase flat rate accrual amounts of additional state pension in accordance with paragraphs 4(2), 8(4) and 9(4) of Schedule 4B to the Contributions and Benefits Act.

Accruals of guaranteed minimum pensions ended on 6th April 1997 by virtue of section 14(8) of the 1993 Act. Revaluation of earnings factors is still required for guaranteed minimum pensions which are not yet in payment.

Article 3 of this Order provides for rounding fractional amounts for earnings factors relevant to the calculation of the additional pension in the rate of any long-term benefit. By virtue of section 23(2) of the Contributions and Benefits Act, rounding is not required for the purpose of calculating guaranteed minimum pensions.

A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sector is foreseen.