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Explanatory Memorandum to Age-Related Payments (Northern Ireland) Order 2004

Background and Policy Objectives

4.The Age-Related Payments Act 2004 introduces provision for the new payment announced by the Chancellor of the Exchequer in his 2004 Budget Statement on 17 March. The one-off lump sum payment of £100 or £50 is to households with occupants who have attained the age of 70 no later than the end of the specified relevant week and who are ordinarily resident in Great Britain on any day in that week. The Act also includes a regulation-making power to enable regulations to be made to cater for any future payments to persons aged 60 or over, or a subset of that group. The Order makes provision for an equivalent lump sum payment and regulation-making power in Northern Ireland.

5.The payment is a lump sum of £100 or £50 paid to households. It is not linked to the payment of any other social security payments and is not to be regarded as income or capital for social security purposes. It is anticipated that the payment is to be made with winter fuel payments, as both payments are to households and the bulk of the payments will be made automatically before the end of the calendar year.

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