PART 2SOCIAL SECURITY BENEFITS AND PENSIONS
Increase in rates or amounts of certain benefits under the Contributions and Benefits Act3
1
The sums specified in paragraph (2) shall be increased from and including the respective dates specified in article 6 so that Schedule 4 to the Contributions and Benefits Act (contributory periodical benefits, non-contributory periodical benefits, increases for dependants and rates of industrial injuries benefit), except paragraph 5 of Part III of that Schedule (guardian’s allowance), has effect as set out in Schedule 1 to this Order.
2
The sums mentioned in paragraph (1) are the sums specified in Parts I, III, IV and V of Schedule 4 to the Contributions and Benefits Act except, in—
a
Part III, the sums specified for age addition to a pension of any category and otherwise under section 79 of that Act;
b
Part IV, the sums specified in column (2) (increase for qualifying child); and
c
Part V, the sums specified for the increase in disablement pension for dependant children, widow’s pension (initial rate) and death benefit allowance in respect of children and qualifying young persons18,
which remain the same.
Increase in rates or amounts of certain pensions and allowances under the Contributions and Benefits Act4
1
The sums specified in paragraphs (2) to (5) shall be increased from and including the respective dates specified in article 6.
2
The sums falling to be calculated under paragraph 13(4) of Schedule 7 to the Contributions and Benefits Act (calculation of weekly rate of a beneficiary’s retirement allowance) shall be increased by 2.7 per cent.
3
In section 44(4) of the Contributions and Benefits Act19 (basic pension in a Category A retirement pension)—
a
for “£73.35” substitute “£75.35”; and
b
for “£82.05” substitute “£84.25”.
4
It is directed20 that the sums which are—
a
additional pensions in long-term benefits calculated by reference to any final relevant year earlier than the tax year 2005–2006;
b
increases in the rates of retirement pensions under Schedule 5 to the Contributions and Benefits Act21 (increase of pension where entitlement is deferred);
c
lump sums to which surviving spouses or civil partners will become entitled under paragraph 7A of that Schedule22 on becoming entitled to a Category A or Category B retirement pension (entitlement to lump sum where pensioner’s deceased spouse or civil partner has deferred entitlement); and
d
shall in each case be increased by 2.7 per cent.
Increase in rates or amount of certain benefits under the Pension Schemes Act5
1
It is directed27 that the sums specified in paragraph (2) shall be increased from and including the respective dates specified in article 6.
2
Sums which are payable by virtue of section 15(1) of the Pension Schemes Act (which provides for increases in a person’s guaranteed minimum pension if payment of his occupational pension is postponed after he attains pensionable age) to a person who is also entitled to a Category A or Category B retirement pension (including sums payable by virtue of section 17(2) and (3) of that Act), shall be increased by 2.7 per cent. where the increase under section 15(1) is attributable to earnings factors for the tax year 1987-88 and earlier tax years28.
Dates on which sums specified for rates or amounts of benefits under the Contributions and Benefits Act or the Pension Schemes Act are increased by this Order6
1
Paragraphs (2) to (9), which are subject to the provisions of paragraph (10), specify the date on which the increases made by this Order in the sums specified for rates or amounts of benefit under the Contributions and Benefits Act or the Pension Schemes Act shall take effect for each case.
2
Subject to paragraph (3), any increases in the sums mentioned in articles 3, 4 and 12 for Category A and Category B retirement pension and graduated retirement benefit together with, where appropriate, any increases for dependants, shall take effect on 10th April 2006.
3
In the case of a person over pensionable age—
a
whose entitlement to a Category A retirement pension is deferred; and
b
for whom the rate of short-term incapacity benefit falls to be calculated in accordance with section 30B(3) of the Contributions and Benefits Act29,
any increases in the sums mentioned in articles 3, 4 and 12 for Category A and Category B retirement pension and graduated retirement benefit together with, where appropriate, any increases for dependants, shall take effect on 13th April 2006.
4
The increases in the sums mentioned in articles 4(4)(d) and 5(2) shall take effect on 10th April 2006.
5
Any increases in the sums specified for—
a
the rate of—
i
Category C and Category D retirement pension,
ii
attendance allowance, and
iii
carer’s allowance (except in a case where the Secretary of State has made arrangements for it to be paid on a Wednesday); and
b
any increases in—
i
Category C retirement pension and carer’s allowance referred to in sub-paragraph (a)(i) and (iv), and
ii
maternity allowance, widowed mother’s allowance and widowed parent’s allowance, in respect of dependants,
shall in all cases take effect on 10th April 2006.
6
Any increases in the sums specified for—
a
the rate of—
i
carer’s allowance in a case where the Secretary of State has made arrangements for it to be paid on a Wednesday,
ii
disablement benefit,
iii
maximum disablement gratuity under paragraph 9(2) of Schedule 7 to the Contributions and Benefits Act,
iv
industrial death benefit by way of widow’s and widower’s pension and allowance in respect of children and qualifying young persons30,
v
the maximum of the aggregate of weekly benefit payable for successive accidents, under section 107(1) of the Contributions and Benefits Act; and
b
any increases in—
i
the benefits referred to in heads (i), (iii) and (iv) of sub-paragraph (a) in respect of dependants, and
ii
disablement pension,
shall in all cases take effect on 12th April 2006.
7
In any case where a person’s weekly rate of Category A or Category B retirement pension falls to be increased under the provisions of section 47(1) or 48C(2) of the Contributions and Benefits Act31 by reference to the weekly rate of invalidity allowance or age addition to long-term incapacity benefit to which he was previously entitled, any increase in such sum shall take effect on 10th April 2006.
8
The increases in the sums specified for the rate of incapacity benefit and severe disablement allowance (together with, where appropriate, any increases for dependants) shall take effect in all cases on 13th April 2006.
9
The increases in the sums falling to be calculated in accordance with paragraph 13(4) of Schedule 7 to the Contributions and Benefits Act (retirement allowance) shall take effect on 12th April 2006.
10
Any increases in the sums specified in articles 3 and 23(c), in so far as those sums are relevant for the purposes of establishing whether the rate of any benefit is not to be increased in respect of an adult dependant because the earnings of the dependant exceed a specified amount32, shall take effect—
a
except in a case where sub-paragraph (b) applies, on the first day of the first benefit week to commence for the beneficiary on or after 10th April 2006;
b
in a case where regulation 7(b) of the Computation of Earnings Regulations (date on which earnings are treated as paid) applies, on the first day of the first benefit week to commence for the beneficiary on or after 1st April 2006,
and for the purposes of this paragraph, “benefit week” has the same meaning as in regulation 2(1) of the Computation of Earnings Regulations.
Increase in rates of certain workmen’s compensation and industrial diseases benefits in respect of employment before 5th July 19487
From and including—
a
12th April 2006, for “£45.70” referred to in paragraph 2(6)(c) of Schedule 8 to the Contributions and Benefits Act (maximum weekly rate of lesser incapacity allowance supplementing workmen’s compensation);
b
13th April 2006, for that sum referred to in paragraph 6(2)(b) of that Schedule (industrial diseases benefit schemes: weekly rate of allowance payable where disablement is not total),
substitute “£46.95”.
Earnings Limits8
In section 80(4) of the Contributions and Benefits Act33 (earnings limits in respect of child dependency increases)—
a
for “£170.00”, in both places where it occurs, substitute “£175.00”; and
b
for “£22.00” substitute “£23.00”.
Statutory Sick Pay9
In section 157(1) of the Contributions and Benefits Act (rate of payment of statutory sick pay) for “£68.20” substitute “£70.05”.
Statutory Maternity Pay10
In regulation 6 of the Statutory Maternity Pay (General) Regulations 198634 (prescribed rate of statutory maternity pay) for “£106.00” substitute “£108.85”.
Statutory Paternity Pay and Statutory Adoption Pay11
In the Statutory Paternity Pay and Statutory Adoption Pay (Weekly Rates) Regulations 200235—
a
in regulation 2(a) (weekly rate of payment of statutory paternity pay) for “£106.00” substitute “£108.85”; and
b
in regulation 3(a) (weekly rate of payment of statutory adoption pay) for “£106.00” substitute “£108.85”.
Increase in rate of graduated retirement benefit12
1
In section 36(1) of the National Insurance Act 196536 (graduated retirement benefit)—
a
the sum of 9.93 pence shall be increased by 2.7 per cent.; and
b
from and including 10th April 2006 the reference in that provision to that sum shall have effect as a reference to 10.20 pence.
2
The sums which are the increases of graduated retirement benefit under Schedule 2 to the Social Security (Graduated Retirement Benefit) (No. 2) Regulations 197837 (increases for deferred retirement) shall be increased by 2.7 per cent.
3
The sums which are the additions under section 37(1) of the National Insurance Act 1965 (additions for widows and widowers) shall be increased by 2.7 per cent.
Increase in rates of Disability Living Allowance13
In regulation 4 of the Social Security (Disability Living Allowance) Regulations 199138 (rate of benefit)—
a
in paragraph (1)(a) for “£60.60” substitute “£62.25”;
b
in paragraph (1)(b) for “£40.55” substitute “£41.65”;
c
in paragraph (1)(c) for “£16.05” substitute “£16.50”;
d
in paragraph (2)(a) for “£42.30” substitute “£43.45”; and
e
in paragraph (2)(b) for “£16.05” substitute “£16.50”.
Increase in rates of age addition to long-term incapacity benefit14
In regulation 10(2) of the Social Security (Incapacity Benefit) Regulations 199439 (increase in rate of incapacity benefit where beneficiary is under prescribed age on the qualifying date)—
a
in sub-paragraph (a) for “£16.05” substitute “£16.50”; and
b
in sub-paragraph (b) for “£8.05” substitute “£8.25”.
Increase in rates of transitional invalidity allowance in long-term incapacity benefit cases15
In regulation 18(2) of the Social Security (Incapacity Benefit) (Transitional) Regulations 199540 (rate of long-term incapacity benefit in transitional cases)—
a
in sub-paragraph (a) for “£16.05” substitute “£16.50”;
b
in sub-paragraph (b) for “£10.30” substitute “£10.60”; and
c
in sub-paragraph (c) for “£5.15” substitute “£5.30”.