Draft Order laid before Parliament under sections 150A(2) and 190(1)(a) of the Social Security Administration Act 1992, for approval by resolution of each House of Parliament.
2016 No.
Social Security
The Social Security Benefits Up-rating Order 2016
Made 2016
Coming into force in accordance with Article 1

The Secretary of State for Work and Pensions has made a review as required by section 150A(1) of the Social Security Administration Act 1992 and it appeared to the Secretary of State that the general level of earnings was greater at the end of the period under review than it was at the beginning of the period.
1992 c. 5. Section 150A was inserted by section 5(1) of the Pensions Act 2007 (c.22) and amended by section 23 of, and paragraphs 8, 19 and 82 of Schedule 12 to, the Pensions Act 2014 (c.19) (“the 2014 Act”) and regulation 7 of S.I. 2014/2888.
A draft of this Order was laid before Parliament in accordance with sections 150A(2) and 190(1)(a) of that Act, and approved by a resolution of each House.
Section 190(1)(a) was amended by section 86 of, and paragraph 110(1) of Schedule 7, and Schedule 8, to the Social Security Act 1998 (c.14) (“the 1998 Act”), section 88 of, and Part VI of Schedule 13 to, the Welfare Reform and Pensions Act 1999 (c.30), section 5(2) of, and paragraph 30 of Schedule 1 to, the Pensions Act 2007 and section 23 of, and paragraphs 8 and 27 of Schedule 12 to, the 2014 Act.
The Treasury has consented to the making of this Order.
See section 189(8) of the Social Security Administration Act 1992.
Accordingly, the Secretary of State for Work and Pensions, in exercise of the powers conferred by sections 150A and 189(1), (4) and (5) of the Social Security Administration Act 1992, makes the following Order.
Section 189(1) was amended by section 86 of, and paragraph 109(a) of Schedule 7, and Schedule 8, to the 1998 Act, section 2 of, and paragraph 57 of Schedule 3 to, the Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c.2) and section 60 of, and Schedule 6 to, the Tax Credits Act 2002 (c.21). Section 189(4) was amended by section 86 of, paragraph 109(c) of Schedule 7, and Schedule 8, to the 1998 Act and by S.I. 2013/252. Section 109(5) was amended by section 86 of, paragraph 109(d) of Schedule 7, and Schedule 8, to the 1998 Act.

1 Citation and commencement
1 This Order may be cited as the Social Security Benefits Up-rating Order 2016.
2 This Order shall come into force for the purposes of—
(a) this article, articles 2 and 3(c) and the Schedule so far as it relates to Part V of Schedule 4 to the Contributions and Benefits Act, on 6th April 2016;
(b) articles 3(a) and (b), 4 and 5, and the remaining parts of the Schedule, on 11th April 2016;
(c) article 6, in so far as it relates to a particular beneficiary, on the first day of the first benefit week to commence for that beneficiary on or after 11th April 2016, and for the purpose of this sub-paragraph “benefit week” has the same meaning as in the State Pension Credit Regulations 2002.
S.I. 2002/1792.

2 Interpretation
In this Order “the Contributions and Benefits Act” means the Social Security Contributions and Benefits Act 1992.
1992 c. 4 (“the Contributions and Benefits Act”).

3 Amounts of certain benefits under the Contributions and Benefits Act
The following sums shall be increased to the amounts set out in the Schedule—
(a) the sum specified in Part I of Schedule 4 to the Contributions and Benefits Act for Category B retirement pension where section 48A(4) or 48AA(4) applies;
(b) the sum specified in Part III of that Schedule for Category D retirement pension; and
(c) the sums specified in Part V of that Schedule for widow’s pension (apart from the amount of the initial rate) and widower’s pension.

4 Increase in amount of basic pension in a Category A retirement pension under the Contributions and Benefits Act
In section 44(4) of the Contributions and Benefits Act (basic pension in a Category A retirement pension) for “£115.95” substitute “£119.30”.
Section 44(4) was substituted by section 68 of the 1998 Act and amended by section 67 of, and Schedule 8 to, the Welfare Reform Act 2007 (c.5) and S.I. 2015/457.

5 Increase in amount of Category C retirement pension under the Social Security (Widow’s Benefit and Retirement Pensions) Regulations 1979
In regulation 11(3) of the Social Security (Widow’s Benefit and Retirement Pensions) Regulations 1979 (Category C retirement pension for widows of men over pensionable age on 5th July 1948) for “£69.50” substitute “£71.50”.
S.I. 1979/642: relevant amending instruments are S.I. 1987/1854, 1989/1642 and 2015/1985.

6 State Pension Credit
In regulation 6 of the State Pension Credit Regulations 2002 (amount of the guarantee credit)—
(a) in paragraph (1)(a) for “£230.85” substitute “£237.55”;
(b) in paragraph (1)(b) for “£151.20” substitute “£155.60”.
Relevant amending instrument is S.I. 2015/457.
Signed by authority of the Secretary of State for Work and Pensions.
Name Minister of State, Department for Work and Pensions Date
We consent,
Two of the Lords Commissioners of Her Majesty’s Treasury Date

SCHEDULE CERTAIN PROVISIONS OF SCHEDULE 4 TO THE CONTRIBUTIONS AND BENEFITS ACT AS AMENDED BY THIS ORDER
Article 3

PART I CONTRIBUTORY PERIODICAL BENEFITS
Description of benefit		Weekly rate	
5.	Category B retirement pension where section 48A(4) or 48AA(4) applies.		£71.50
Paragraph 5 was amended by section 23 of, and paragraphs 57 and 68 of Schedule 12 to, the 2014 Act and by S.I. 2015/457.

PART III NON-CONTRIBUTORY PERIODICAL BENEFITS
Description of benefit		Weekly rate
7.	Category D retirement pension.	£71.50
Paragraph 7 was amended by section 23 of, and paragraphs 78 and 81(b) of Schedule 12 to, the 2014 Act.

PART V RATES OF INDUSTRIAL INJURIES BENEFIT
Description of benefit, etc.		Rate		
10.	Widow’s pension (weekly rates).	(b)	higher permanent rate	£119.30;
		(c)	lower permanent rate 30 per cent of the first sum specified in section 44(4) (Category A basic retirement pension) (the appropriate rate being determined in accordance with paragraph 16 of Schedule 7)	
11.	Widower’s pension (weekly rate).	£119.30.		
Widow’s and widower’s pension are payable in relation only to deaths occurring before 11th April 1988 (paragraph 14(1) of Schedule 7 to the Contributions and Benefits Act). Relevant amending instrument is S.I. 2015/457.

EXPLANATORY NOTE
(This note is not part of the Order)
The Order is made as a consequence of a review under section 150A of the Social Security Administration Act 1992 (“the Administration Act”) and includes details of the sums mentioned in that section.
Article 3 and the Schedule increase certain benefits specified in Parts I, III and V of Schedule 4 to the Social Security Contributions and Benefits Act 1992. These are the amounts of a Category B and D retirement pension and widow’s pension (apart from the amount of the initial rate) and widower’s pension in industrial death benefit.
Article 4 increases the amount of the basic pension in a Category A retirement pension.
Article 5 increases the amount of a Category C retirement pension.
Article 6 increases the amount of the standard minimum guarantee in state pension credit.
In accordance with section 150A(5) of the Administration Act, a copy of the report of the Government Actuary giving his opinion on the likely effect on the National Insurance Fund of the making of this Order was laid before Parliament with the draft Order.
An Impact Assessment has not been published for this instrument as it has no new impact on business or civil society organisations.