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

Made2016

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 19921 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.

A draft of this Order was laid before Parliament in accordance with sections 150A(2) and 190(1)(a)2 of that Act, and approved by a resolution of each House.

The Treasury3 has consented to the making of this Order.

Accordingly, the Secretary of State for Work and Pensions, in exercise of the powers conferred by sections 150A and 189(1), (4) and (5)4 of the Social Security Administration Act 1992, makes the following Order.

Citation and commencement1

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 20025.

Interpretation2

In this Order “the Contributions and Benefits Act” means the Social Security Contributions and Benefits Act 19926.

Amounts of certain benefits under the Contributions and Benefits Act3

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.

Increase in amount of basic pension in a Category A retirement pension under the Contributions and Benefits Act4

In section 44(4) of the Contributions and Benefits Act7 (basic pension in a Category A retirement pension) for “£115.95” substitute “£119.30”.

Increase in amount of Category C retirement pension under the Social Security (Widow’s Benefit and Retirement Pensions) Regulations 19795

In regulation 11(3) of the Social Security (Widow’s Benefit and Retirement Pensions) Regulations 19798 (Category C retirement pension for widows of men over pensionable age on 5th July 1948) for “£69.50” substitute “£71.50”.

State Pension Credit6

In regulation 6 of the State Pension Credit Regulations 20029 (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”.

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

NameMinister of State,Department for Work and PensionsDate

We consent,

Two of the Lords Commissioners of Her Majesty’s TreasuryDate

SCHEDULECERTAIN PROVISIONS OF SCHEDULE 4 TO THE CONTRIBUTIONS AND BENEFITS ACT AS AMENDED BY THIS ORDER

Article 3

PART I10CONTRIBUTORY PERIODICAL BENEFITS

Description of benefit		Weekly rate
5.	Category B retirement pension where section 48A(4) or 48AA(4) applies.		£71.50

PART III11NON-CONTRIBUTORY PERIODICAL BENEFITS

Description of benefit		Weekly rate
7.	Category D retirement pension.	£71.50

PART V12RATES 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.

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.

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.