(1)After section 63 of the 1986 Act (annual review of certain sums) there shall be inserted the following—
(1)If the Secretary of State is satisfied that a mistake (whether in computation or otherwise) has occurred in the preparation of the previous order under section 63 above, he may by order vary the amount of any one or more of the sums specified in an enactment mentioned in subsection (1)(a) of that section by increasing or reducing it to the level at which it would have stood had the mistake not occurred.
(2)Where the amount of any such sum is varied under this section, then, for the purposes of the next review and order under that section, the amount of the sum shall be taken to be, and throughout the period under review to have been, its amount as so varied.”
(2)In that Act—
(a)in section 64 (effect of alteration of rates of benefit) in subsection (1)(b), after the words “section 63” there shall be inserted the words “or 63A”;
(b)in section 83, in subsection (3) (statutory instruments which require affirmative procedure) in paragraph (d), after the words “section 63” there shall be inserted the words “or 63A”; and
(c)in subsection (5) of that section (Treasury consent) for the words “or 63” there shall be substituted the words “,63 or 63A”.
(3)In section 59B of the principal Act (retirement allowance) after subsection (5) there shall be inserted—
“(5A)For the purpose of determining under subsection (5) above the weekly rate of retirement allowance in the case of a beneficiary who—
(a)retires or is deemed to have retired on 10th April 1989, and
(b)on 9th April 1989 was entitled to reduced earnings allowance at a rate which was restricted under section 59A(8) above by reference to 40 per cent. of the maximum rate of disablement pension,
it shall be assumed that the weekly rate of reduced earnings allowance to which he was entitled on 9th April 1989 was £26.96.”
(4)Section 2 of the [1988 c. 7.] Social Security Act 1988 (certain persons to be entitled to reduced earnings allowance after introduction of retirement allowance etc) shall have effect with the amendments specified in subsections (5) and (6) below.
(5)After subsection (5) there shall be inserted—
“(5A)For the purpose of determining under subsection (5) above the weekly rate of reduced earnings allowance payable in the case of a qualifying beneficiary, it shall be assumed that the weekly rate at which the allowance was payable to him on the relevant date was—
(a)£25.84, where that date is 10th April 1988, or
(b)£26.96, where that date is 9th April 1989.
(5B)In subsection (5A) above “qualifying beneficiary” means a person entitled to reduced earnings allowance by virtue of subsection (4) above who—
(a)did not attain pensionable age before 6th April 1987, or
(b)did not retire from regular employment before that date,
and who, on the relevant date, was entitled to the allowance at a rate which was restricted under section 59A(8) of the Social Security Act 1975 by reference to 40 per cent. of the maximum rate of disablement pension.”
(6)In subsection (7) (relevant date for persons entitled to the allowance by virtue of subsection (4)(b)) after the words “by virtue” there shall be inserted the word “only”.
(7)Subsections (3) to (6) above shall be deemed to have come into force on 10th April 1989.
After section 64 of the 1986 Act (effect of alteration of rates of benefit) there shall be inserted—
(1)Subject to such exceptions and conditions as may be prescribed, where—
(a)an award of income support is in force in favour of any person (“the recipient”), and
(b)there is an alteration in any of the relevant amounts, that is to say—
(i)any of the component rates of income support,
(ii)any of the other sums specified in regulations under Part II above, or
(iii)the recipient’s benefit income, and
(c)the alteration affects the computation of the amount of income support to which the recipient is entitled,
then subsection (2) or (3) below (as the case may be) shall have effect.
(2)Where, in consequence of the alteration in question, the recipient becomes entitled to an increased or reduced amount of income support (“the new amount”), then, as from the commencing date, the amount of income support payable to or for the recipient under the award shall be the new amount, without any further decision of an adjudication officer, and the award shall have effect accordingly.
(3)Where, notwithstanding the alteration in question, the recipient continues on and after the commencing date to be entitled to the same amount of income support as before, the award shall continue in force accordingly.
(4)In any case where—
(a)there is an alteration in any of the relevant amounts, and
(b)before the commencing date (but after that date is fixed) an award of income support is made in favour of a person,
the award either may provide for income support to be paid as from the commencing date, in which case the amount shall be determined by reference to the relevant amounts which will be in force on that date, or may provide for an amount determined by reference to the amounts in force at the date of the award.
(5)In this section—
“alteration” means—
in relation to—
the component rates of income support, or
any other sums specified in regulations under Part II of this Act,
their alteration by or under any enactment, whether or not contained in that Part; and
in relation to a person’s benefit income, the alteration of any of the sums referred to in section 63(1) above—
by any enactment, or
by an order under section 63 or 63A above,
to the extent that any such alteration affects the amount of his benefit income;
“benefit income”, in relation to any person, means so much of his income as consists of—
benefit under the benefit Acts, other than income support; or
a war disablement pension or war widow’s pension;
“the commencing date”, in relation to an alteration, means the date on which the alteration comes into force in the case of the person in question;
“component rate”, in relation to income support, means the amount of—
any of the sums specified in regulations under section 22(1) above; or
the sum referred to in section 23(5)(b)(i) and (ii) above;
“relevant amounts” has the meaning given by subsection (1)(b) above.”