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N.I.

Social Security Contributions and Benefits (Northern Ireland) Act 1992

1992 CHAPTER 7

An Act to consolidate for Northern Ireland certain enactments relating to social security contributions and benefits, with corrections and minor improvements under the Consolidation of Enactments (Procedure) Act 1949.

[13th February 1992]

Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—

Modifications etc. (not altering text)

C1Act amended (1.7.1992) by Social Security (Consequential Provisions) (Northern Ireland) Act 1992 (c. 9), ss. 2(3), 7(2)

Act amended (5.7.1999, 6.9.1999, 5.10.1999, 18.10.1999 and 29.11.1999 for different purposes, otherwiseprosp.) by S.I. 1998/1506 (N.I. 10), arts. 1(2), 9; S.R. 1999/310, art. 2(1)(b), Sch. 1 (with arts. 4, 14); S.R. 1999/371, art. 2(b), Sch. 1 (with arts. 4, 18); S.R. 1999/407, art. 2(b), Sch. (with art. 4); S.R. 1999/428, art. 2(b), Sch. 1 (with arts. 4, 16); S.R. 1999/472, art. 2(1)(a)(2), Sch. 1 (with arts. 20-22)

Act amended (11.5.2001) by 2001 c. 20, s. 5(5)

C2Act: power to amend conferred (1.7.1992) by Social Security Administration Act 1992 (c. 5), ss. 177(5)(b), 189(11), 192(4)

Act: power to modify conferred (1.7.1992) by Social Security Administration (Northern Ireland) Act 1992 (c. 8), ss. 155(4)(5), 168(4)

Act: power to repeal or amend conferred (1.7.1992) by Social Security (Consequential Provisions) (Northern Ireland) Act 1992 (c. 9), ss. 5, 7(2), Sch. 3 Pt. I para. 7(1)

Act: power to amend conferred (1.7.1992) by Social Security (Consequential Provisions) (Northern Ireland) Act 1992 (c. 9), ss. 5, 7(2), Sch. 3 Pt. II paras. 12, 13, 14, 21(3)(4)(c)

Act: power to modify conferred (1.6.1996 for the purpose only of authorising the making of regulations and 6.4.1997 otherwise) by S.I. 1995/3213 (N.I. 22), arts. 1, 146(1)(2); S.R. 1996/91, art. 2(f); S.R. 1997/192, art. 2(b)

Act: power to exclude conferred (24.7.1996) by 1996 c. 49, ss. 11(1)(b)(2), 13(3)

Act: power to amend conferred (2.12.1999) by 1998 c. 47, s. 87; S.I. 1999/3209, art. 2, Sch.

Act: power to issue payment conferred (prosp.) by S.I. 1998/1759 (N.I. 13), arts. 1(2), 71

Act: power to modify conferred (temp. from 24.3.1999) by S.I. 1999/671, arts. 1(2)(c), 14(1)(2)(b), Sch. 6 (with savings and transitional provisions in Sch. 7)

Act: power to modify conferred (1.4.1999) by 1999 c. 2, s. 15(1)(2)(b); S.I. 1999/527, art. 2(b), Sch. 2

Act: power to modify conferred (5.10.1999) by 1999 c. 10, ss. 2, 20, Sch. 2 para. 30

Act: power to amend or apply conferred (8.7.2002) by Employment Act 2002 (c. 22), ss. 46(3)(d)(iii), 55(2)

C3Act modified (1.7.1992) by Social Security Administration (Northern Ireland) Act 1992 (c. 8), ss. 30(10), 115(4), 168(4)

Act modified (27.7.1992) by S.R. 1992/328, art. 2.

Act modified (31.12.1992) by S.R. 1992/560, art. 2, S.R. 1992/561, art.2, S.R. 1992/562, art.2, S.R. 1992/563, art. 2 and S.R. 1992/564, art. 2

Act modified (7.2.1994) by 1993 c. 49, s. 42(1)(a); S.R. 1994/17, art. 2

Act modified (4.7.1994) by S.R. 1995/262, art. 2

Act modified (2.11.1994) by S.R. 1994/427, art. 2

Act modified (13.4.1995) by: S.R. 1995/35, regs. 16, 18, 21, 26, 31; S.R. 1995/110, art. 2; S.R. 1994/485, regs. 2-4; S.R. 1994/485, reg. 16 (as added by S.R. 1995/150, reg. 23); S.R. 1995/150, Pt. III, reg. 24

Act modified (1.12.1995) by S.R. 1995/405, art. 2(1)

Act modified (16.12.1995) by S.I. 1995/3213 (N.I. 22), arts. 1(3), 123, Sch. 2 Pt. I para. 1

Act modified (1.9.1999) by: S.R. 1999/349, reg. 2(2), Sch.; S.R. 1999/350, reg. 2(2), Sch.

Act modified (5.10.1999) by 1999 c. 10, ss. 2, 20, Sch. 2 para. 29

Act modified (1.8.2000) by S.R. 2000/246, art. 2, Sch.

Act modified by S.R. 2000/377, art. 2, Sch. (the amendment coming into force in accordance with art. 1(1) of the amending S.R.)

C6Act: certain functions transferred (5.10.1999) by 1999 c. 10, ss. 2, 20, Sch. 2 para. 7(c)

Act: functions transferred from the Department of Health and Social Services to the Department for Social Development (1.12.1999) by S.R. 1999/481, art. 8(b), Sch. 6 Pt. II

Act: certain functions of the Secretary of State and the Northern Ireland Department transferred (prosp.) to the Board by Tax Credits Act 2002 (c. 21), ss. 50, 61 (subject to s. 49 and with s. 54(2)(3)(5)(7)(9))

C7Act restricted (1.1.2000 for specified purposes and otherwise 3.4.2000) by 1999 c. 33, s. 115(1); S.I. 1999/3190, art. 2, Sch.; S.I. 2000/464, art. 2, Sch.

C8Act: transfer of functions (1.4.2003 for specified purposes, 7.4.2003 in so far as not already in force) by Tax Credits Act 2002 (c. 21), ss. 50(2)(c), 61 (with s. 54(2)(3)(5)(7)(9)); S.I. 2003/392, art. 2

Part IN.I. Contributions

Modifications etc. (not altering text)

C9Pt. I (ss. 1-19): power to modify conferred (7.2.1994) by 1993 c. 49, s. 35, Sch. 1 Pt. I para. 5(3)(d); S.R. 1994/17, art. 2

Pt. I (ss. 1-19) amended (1.4.1999) by 1999 c. 2, s. 3(1)(7); S.I. 1999/527, art. 2(b), Sch. 2

PreliminaryN.I.

1 Outline of contributory system.N.I.

(1)The funds required—

(a)for paying such benefits under this Act as are payable out of the National Insurance Fund and not out of other public money; and

(b)for the making of payments under section 142 of the Administration Act towards the cost of the health service,

shall be provided by means of contributions payable to the [F1Inland Revenue] by earners, employers and others, together with the additions under subsection (5) below [F2and amounts payable under Article 4 of the Social Security (Northern Ireland) Order 1993].

(2)Contributions under this Part of this Act shall be of the following [F3six] classes—

(a)Class 1, earnings-related, payable under section 6 below, being—

(i)primary Class 1 contributions from employed earners; and

(ii)secondary Class 1 contributions from employers and other persons paying earnings;

(b)Class 1A, payable under section 10 below F4. . . by persons liable to pay secondary Class 1 contributions and certain other persons;

[F5(bb)Class 1B, payable under section 10A below by persons who are accountable to the Inland Revenue in respect of income tax on [F6general earnings] in accordance with a PAYE settlement agreement;]

(c)Class 2, flat-rate, payable weekly under section 11 below by self-employed earners;

(d)Class 3, payable under section 13 below by earners and others voluntarily with a view to providing entitlement to benefit, or making up entitlement; and

(e)Class 4, payable under section 15 below in respect of the profits or gains of a trade, profession or vocation, or under section 18 below in respect of equivalent earnings.

(3)The amounts and rates of contributions in this Part of this Act and the other figures in it which affect the liability of contributors shall—

(a)be subject to regulations under sections 19(4) and 116 to 119 below; and

(b)to the extent provided for by section 129 of the Administration Act be subject to alteration by orders made under that section,

and the provisions of this Part of this Act are subject to the provisions of [F7Chapter II of Part III of the Pensions Act (reduction in state scheme contributions and social security benefits for members of certified schemes)].

(4)Schedule 1 to this Act—

(a)shall have effect with respect to the computation, collection and recovery of contributions of Classes 1, 1A, [F81B,] 2 and 3, and otherwise with respect to contributions of those classes; and

(b)shall also, to the extent provided by regulations made under section 18 below, have effect with respect to the computation, collection and recovery of Class 4 contributions, and otherwise with respect to such contributions, F9. . .

(5)For each financial year there shall, by way of addition to contributions, be paid out of money hereafter appropriated for that purpose, in such manner and at such times as the Department of Finance and Personnel may determine, amounts the total of which for any such year is equal to the aggregate of all statutory sick pay [F10, statutory maternity pay, statutory paternity pay and statutory adoption pay] recovered by employers and others in that year, as estimated by the Department.

(6)No person shall—

(a)be liable to pay Class 1, Class 1A [F11, Class 1B] or Class 2 contributions unless he fulfils prescribed conditions as to residence or presence in Northern Ireland;

(b)be entitled to pay Class 3 contributions unless he fulfils such conditions; or

(c)be entitled to pay Class 1, Class 1A [F11, Class 1B] or Class 2 contributions other than those which he is liable to pay, except so far as he is permitted by regulations to pay them.

[F12(7)Regulations under subsection (6) above shall be made by the Treasury.]

Textual Amendments

F1Words in s. 1(1) substituted (24.3.1999 for specified purposes and 1.4.1999 otherwise) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 5(2) (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)

F2Words in s. 1(1) added (17.3.1993) by S.I. 1993/592 (N.I. 2), arts. 1(2), 4(9)

F3Word in s. 1(2) substituted (9.9.1998 for the purpose of making regulations and 6.4.1999 otherwise) by S.I. 1998/1506, art. 78(1), Sch. 6 para. 38(1); S.R. 1998/312, art. 2(b), Sch. Pt. II

F4Words in s. 1(2)(b) repealed (with effect in relation to tax year 2000-2001 and subsequent tax years) by 2000 c. 19, ss. 78(1)(8), 85, Sch. 9 Pt. VIII(2), note 1 (with s. 78(9))

F5S. 1(2)(bb) inserted (9.9.1998 for the purpose of making regulations and 6.4.1999 otherwise) by S.I. 1998/1506 (N.I. 10), art. 78(1), Sch. 6 para. 38(1); S.R. 1998/312, art. 2(b), Sch. Pt. II

F6Words in s. 1(2)(bb) substituted (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 6 para. 191 (with Sch. 7)

F7Words in s. 1(3) substituted (7.2.1994) by 1993 c. 49, s. 184, Sch. 7 para. 27; S.R. 1994/17, art. 2

F8Words in s. 1(4)(a) inserted (9.9.1998 for the purpose of making regulations and 6.4.1999 otherwise) by S.I. 1998/1506 (N.I. 10), art. 78(1), Sch. 6 para. 38(2); S.R. 1998/312, art. 2(b), Sch. Pt. II

F9Words in s. 1(4)(b) repealed (omitted 24.3.1999 for specified purposes only and wholly repealed 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), 24(3), Sch. 1 para. 5(3), Sch. 9 Pt. I (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)

F11Words in s. 1(6) inserted (9.9.1998 for the purpose of making regulations and 6.4.1999 otherwise) by S.I. 1998/1506 (N.I. 10), art. 78(1), Sch. 6 para. 38(3); S.R. 1998/312, art. 2(b), Sch. Pt. II

F12S. 1(7) inserted (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 2 (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)

2 Categories of earners.N.I.

(1)In this Part of this Act and Parts II to V—

(a)employed earner” means a person who is gainfully employed in Northern Ireland either under a contract of service, or in an office (including elective office) with [F13general earnings] ; and

(b)self-employed earner” means a person who is gainfully employed in Northern Ireland otherwise than in employed earner’s employment (whether or not he is also employed in such employment).

(2)Regulations may provide—

(a)for employment of any prescribed description to be disregarded in relation to liability for contributions otherwise arising from employment of that description;

(b)for a person in employment of any prescribed description to be treated, for the purposes of this Act, as falling within one or other of the categories of earner defined in subsection (1) above, notwithstanding that he would not fall within that category apart from the regulations.

[F14(2A)Regulations under subsection (2) above shall be made by the Treasury and, in the case of regulations under paragraph (b) of that subsection, with the concurrence of the Department.]

(3)Where a person is to be treated by reference to any employment of his as an employed earner, then he is to be so treated for all purposes of this Act; and references throughout this Act to employed earner’s employment shall be construed accordingly.

(4)Subsections (1) to (3) above are subject to the provision made by section 95 below as to the employments which are to be treated, for the purposes of industrial injuries benefit, as employed earner’s employments.

(5)For the purposes of this Act, a person shall be treated as a self-employed earner as respects any week during any part of which he is such an earner (without prejudice to his being also treated as an employed earner as respects that week by reference to any other employment of his).

Textual Amendments

F13Words in s. 2(1)(a) substituted (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 6 para. 192 (with Sch. 7)

F14S. 2(2A) substituted (11.11.1999) by 1999 c. 30, ss. 81, 89(4)(d), Sch. 11 para. 10

3“Earnings” and “earner”.N.I.

(1)In this Part of this Act and Parts II to V—

(a)earnings” includes any remuneration or profit derived from an employment; and

(b)earner” shall be construed accordingly.

(2)For the purposes of this Part of this Act and of Parts II to V other than those of Schedule 8—

(a)the amount of a person’s earnings for any period; or

(b)the amount of his earnings to be treated as comprised in any payment made to him or for his benefit,

shall be calculated or estimated in such manner and on such basis as may be prescribed [F15by regulations made by the Treasury with the concurrence of the Department].

[F16(2A)Regulations made for the purposes of subsection (2) above may provide that, where a payment is made or a benefit provided to or for the benefit of two or more earners, a proportion (determined in such manner as may be prescribed) of the amount or value of the payment or benefit shall be attributed to each earner.]

(3)Regulations made for the purposes of subsection (2) above may prescribe that payments of a particular class or description made or falling to be made to or by a person shall, to such extent as may be prescribed, be disregarded or, as the case may be, be deducted from the amount of that person’s earnings.

[F17(4)Subsection (5) below applies to regulations made for the purposes of subsection (2) above which make special provision with respect to the earnings periods of directors and former directors of companies.

(5)Regulations to which this subsection applies may make provision—

(a)for enabling companies, and directors and former directors of companies, to pay on account of any earnings-related contributions that may become payable by them such amounts as would be payable by way of such contributions if the special provision had not been made; and

(b)for requiring any payments made in accordance with the regulations to be treated, for prescribed purposes, as if they were the contributions on account of which they were made.]

Textual Amendments

F15Words in s. 3(2) inserted (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 4 (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)

Modifications etc. (not altering text)

C10S. 3 applied (7.2.1994) by 1993 c. 49, s. 176(1); S.R. 1994/17, art. 2

4 Payments treated as remuneration and earnings.N.I.

(1)For the purposes of section 3 above there shall be treated as remuneration derived from employed earner’s employment—

(a)any sum paid to or for the benefit of a person in satisfaction (whether in whole or in part) of any entitlement of that person to—

(i)statutory sick pay; or

(ii)statutory maternity pay; [F18or

(iii)statutory paternity pay, or

(iv)statutory adoption pay] and

(b)any sickness payment made—

(i)to or for the benefit of the employed earner; and

(ii)in accordance with arrangements under which the person who is the secondary contributor in relation to the employment concerned has made, or remains liable to make, payments towards the provision of that sickness payment.

(2)Where the funds for making sickness payments under arrangements of the kind mentioned in paragraph (b) of subsection (1) above are attributable in part to contributions to those funds made by the employed earner, regulations may make provision for disregarding, for the purposes of that subsection, the prescribed part of any sum paid as a result of the arrangements.

(3)For the purposes of subsections (1) and (2) above “sickness payment” means any payment made in respect of absence from work due to incapacity for work F19. . ..

[F20(4)For the purposes of section 3 above there shall be treated as remuneration derived from an employed earner’s employment—

[F21(a)the amount of any gain calculated under section 479 [F22of ITEPA 2003 in respect of which an amount counts as employment income of the earner under section 476 of that Act (charge on acquisition of securities pursuant to option etc), reduced by any amounts deducted under section 480(1) to (6) of that Act in arriving at the amount counting as such employment income;]]

(b)any sum paid (or treated as paid) to or for the benefit of the earner which is chargeable to tax by virtue of [F23section 225 or 226 of ITEPA 2003] (taxation of consideration for certain restrictive undertakings).]

(5)For the purposes of section 3 above regulations may make provision for treating as remuneration derived from an employed earner’s employment any payment made by a body corporate to or for the benefit of any of its directors where that payment would, when made, not be earnings for the purposes of this Act.

[F24(6)Regulations may make provision for the purposes of this Part—

(a)for treating any amount on which an employed earner is chargeable to income tax under [F25the employment income Parts of ITEPA 2003] as remuneration derived from the earner’s employment; and

(b)for treating any amount which in accordance with regulations under paragraph (a) above constitutes remuneration as an amount of remuneration paid, at such time as may be determined in accordance with the regulations, to or for the benefit of the earner in respect of his employment.]

[F26(7)Regulations under this section shall be made by the Treasury with the concurrence of the Department.]

Textual Amendments

F20S. 4(4) substituted (1.7.1998 for specified purposes and 9.9.1998 otherwise with effect as mentioned in art. 47(3) of the amending S.I.) by S.I. 1998/1506 (N.I. 10), arts. 1(3), 47(1)(3); S.R. 1998/312, art. 2(a), Sch. Pt. I,

F21S. 4(4)(a) substituted (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 6 para. 193(2) (with Sch. 7)

F22Words in s. 4(4)(a) substituted (with effect in accordance with Sch. 22 para. 48(2) of the amending Act) by Finance Act 2003 (c. 14), Sch. 22 para. 48(1)(b)

F23Words in s. 4(4)(b) substituted (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 6 para. 193(3) (with Sch. 7)

F24S. 4(6) substituted (with effect in relation to tax year 2000-2001 and subsequent tax years) by 2000 c. 19, s. 78(3)(8) (with s. 78(9))

F25Words in s. 4(6)(a) substituted (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 6 para. 193(4) (with Sch. 7)

F26S. 4(7) added (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 5 (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)

Modifications etc. (not altering text)

C11S. 4 applied (7.2.1994) by 1993 c. 49, s. 176(1); S.R. 1994/17, art. 2

C12S. 4(1) modified (with effect in relation to tax year 2001-2002 and subsequent tax years) by S.R. 1979/186, Sch. 1ZC Pt. X para. 7 (as inserted by S.I. 2001/597, regs. 1(2), 11, Sch. 2

[F274A Earnings of workers supplied by service companies etc.N.I.

(1)Regulations may make provision for securing that where—

(a)an individual (“the worker”) personally performs, or is under an obligation personally to perform, services [F28for another person] (“the client”),

(b)the performance of those services by the worker is (within the meaning of the regulations) referable to arrangements involving a third person (and not referable to any contract between the client and the worker), and

(c)the circumstances are such that, were the services to be performed by the worker under a contract between him and the client, he would be regarded for the purposes of the applicable provisions of this Act as employed in employed earner’s employment by the client,

relevant payments or benefits are, to the specified extent, to be treated for those purposes as earnings paid to the worker in respect of an employed earner’s employment of his.

(2)For the purposes of this section—

(a)the intermediary” means—

(i)where the third person mentioned in subsection (1)(b) above has such a contractual or other relationship with the worker as may be specified, that third person, or

(ii)where that third person does not have such a relationship with the worker, any other person who has both such a relationship with the worker and such a direct or indirect contractual or other relationship with the third person as may be specified; and

(b)a person may be the intermediary despite being—

(i)a person with whom the worker holds any office or employment, or

(ii)a body corporate, unincorporated body or partnership of which the worker is a member;

and subsection (1) above applies whether or not the client is a person with whom the worker holds any office or employment.

(3)Regulations under this section may, in particular, make provision—

(a)for the worker to be treated for the purposes of the applicable provisions of this Act, in relation to the specified amount of relevant payments or benefits (the worker’s “attributable earnings”), as employed in employed earner’s employment by the intermediary;

(b)for the intermediary (whether or not he fulfils the conditions prescribed under section 1(6)(a) above for secondary contributors) to be treated for those purposes as the secondary contributor in respect of the worker’s attributable earnings;

(c)for determining—

(i)any deductions to be made, and

(ii)in other respects the manner and basis in and on which the amount of the worker’s attributable earnings for any specified period is to be calculated or estimated,

in connection with relevant payments or benefits;

(d)for aggregating any such amount, for purposes relating to contributions, with other earnings of the worker during any such period;

(e)for determining the date by which contributions payable in respect of the worker’s attributable earnings are to be paid and accounted for;

(f)for apportioning payments or benefits of any specified description, in such manner or on such basis as may be specified, for the purpose of determining the part of any such payment or benefit which is to be treated as a relevant payment or benefit for the purposes of the regulations;

(g)for disregarding for the purposes of the applicable provisions of this Act, in relation to relevant payments or benefits, an employed earner’s employment in which the worker is employed (whether by the intermediary or otherwise) to perform the services in question;

(h)for otherwise securing that a double liability to pay any amount by way of a contribution of any description does not arise in relation to a particular payment or benefit or (as the case may be) a particular part of a payment or benefit;

(i)for securing that, to the specified extent, two or more persons, whether—

(i)connected persons (within the meaning of section 839 of the M1Income and Corporation Taxes Act 1988), or

(ii)persons of any other specified description,

are treated as a single person for any purposes of the regulations;

(j)(without prejudice to paragraph (i) above) for securing that a contract made with a person other than the client is to be treated for any such purposes as made with the client;

(k)for excluding or modifying the application of the regulations in relation to such cases, or payments or benefits of such description, as may be specified.

(4)Regulations made in pursuance of subsection (3)(c) above may, in particular, make provision—

(a)for the making of a deduction of a specified amount in respect of general expenses of the intermediary as well as deductions in respect of particular expenses incurred by him;

(b)for securing reductions in the amount of the worker’s attributable earnings on account of—

(i)any secondary Class 1 contributions already paid by the intermediary in respect of actual earnings of the worker, and

(ii)any such contributions that will be payable by him in respect of the worker’s attributable earnings.

(5)Regulations under this section may make provision for securing that, in applying any provisions of the regulations, any term of a contract or other arrangement which appears to be of a description specified in the regulations is to be disregarded.

(6)In this section—

  • the applicable provisions of this Act” means this Part of this Act and Parts II to V below;

  • F29...

  • relevant payments or benefits” means payments or benefits of any specified description made or provided (whether to the intermediary or the worker or otherwise) in connection with the performance by the worker of the services in question;

  • specified” means prescribed by or determined in accordance with regulations under this section.

(7)Any reference in this section to the performance by the worker of any services includes a reference to any such obligation of his to perform them as is mentioned in subsection (1)(a) above.

(8)Regulations under this section shall be made by the Treasury with the concurrence of the Department.

(9)If, on any modification of the statutory provisions relating to income tax, it appears to the Treasury to be expedient to modify any of the preceding provisions of this section for the purpose of assimilating the law relating to income tax and the law relating to contributions under this Part of this Act, the Treasury may with the concurrence of the Department by order make such modifications of the preceding provisions of this section as the Treasury think appropriate for that purpose.]

Class 1 contributionsN.I.

[F305 Earnings limits and thresholds for Class 1 contributions.N.I.

(1)For the purposes of this Act there shall for every tax year be—

(a)the following for primary Class 1 contributions—

(i)a lower earnings limit,

(ii)a primary threshold, and

(iii)an upper earnings limit; and

(b)a secondary threshold for secondary Class 1 contributions.

Those limits and thresholds shall be the amounts specified for that year by regulations which, in the case of those limits, shall be made in accordance with subsections (2) and (3) below.

(2)The amount specified as the lower earnings limit for any tax year shall be an amount equal to or not more than 99p less than—

(a)the sum which at the beginning of that year is specified in section 44(4) below as the weekly rate of the basic pension in a Category A retirement pension; or

(b)that sum as increased by any Act, Measure or order passed or made before the beginning of that year and taking effect before 6th May in that year.

(3)The amount specified as the upper earnings limit for any tax year shall be an amount which either—

(a)is equal to 7 times the sum which is the primary threshold for that year; or

(b)exceeds or falls short of 7 times that sum by an amount not exceeding half that sum.

(4)Regulations may, in the case of each of the limits or thresholds mentioned in subsection (1) above, prescribe an equivalent of that limit or threshold in relation to earners paid otherwise than weekly (and references in this Act or any other statutory provision to “the prescribed equivalent”, in the context of any of those limits or thresholds, are accordingly references to the equivalent prescribed under this subsection in relation to such earners).

(5)The power conferred by subsection (4) above to prescribe an equivalent of any of those limits or thresholds includes power to prescribe an amount which exceeds, by not more than £1.00, the amount which is the arithmetical equivalent of that limit or threshold.

(6)Regulations under this section shall be made by the Treasury.]

Textual Amendments

F30S. 5 substituted (22.12.1999 for specified purposes and 6.4.2000 otherwise) by 1999 c. 30, s. 74, Sch. 10 para. 1; S.I. 1999/3420, art. 2

[F316 Liability for Class 1 contributions.N.I.

(1)Where in any tax week earnings are paid to or for the benefit of an earner over the age of 16 in respect of any one employment of his which is employed earner’s employment—

(a)a primary Class 1 contribution shall be payable in accordance with this section and section 8 below if the amount paid exceeds the current primary threshold (or the prescribed equivalent); and

(b)a secondary Class 1 contribution shall be payable in accordance with this section and section 9 below if the amount paid exceeds the current secondary threshold (or the prescribed equivalent).

(2)No primary or secondary Class 1 contribution shall be payable in respect of earnings if a Class 1B contribution is payable in respect of them.

(3)Except as may be prescribed, no primary Class 1 contribution shall be payable in respect of earnings paid to or for the benefit of an employed earner after he attains pensionable age, but without prejudice to any liability to pay secondary Class 1 contributions in respect of any such earnings.

(4)The primary and secondary Class 1 contributions referred to in subsection (1) above are payable as follows—

(a)the primary contribution shall be the liability of the earner; and

(b)the secondary contribution shall be the liability of the secondary contributor;

but nothing in this subsection shall prejudice the provisions of [F32paragraphs 3 to 3B of Schedule 1 to this Act.]

(5)Except as provided by this Act, the primary and secondary Class 1 contributions in respect of earnings paid to or for the benefit of an earner in respect of any one employment of his shall be payable without regard to any other such payment of earnings in respect of any other employment of his.

(6)Regulations may provide for reducing primary or secondary Class 1 contributions which are payable in respect of persons to whom Part XII of the M2Employment Rights (Northern Ireland) Order 1996 (redundancy payments) does not apply by virtue of Article 242(2) or 250 of that Order.

(7)Regulations under this section shall be made by the Treasury.]

Textual Amendments

F31S. 6 substituted (22.12.1999 for specified purposes and 6.4.2000 otherwise) by 1999 c. 30, s. 74, Sch. 10 para. 2; S.I. 1999/3420, art. 2

F32Words in s. 6(4) substituted (28.7.2000) by 2000 c. 19, s. 81(3)

Marginal Citations

[F336A Notional payment of primary Class 1 contribution where earnings not less than lower earnings limit.N.I.

(1)This section applies where in any tax week earnings are paid to or for the benefit of an earner over the age of 16 in respect of any one employment of his which is employed earner’s employment and the amount paid—

(a)is not less than the current lower earnings limit (or the prescribed equivalent), but

(b)does not exceed the current primary threshold (or the prescribed equivalent).

(2)Subject to any prescribed exceptions or modifications—

(a)the earner shall be treated as having actually paid a primary Class 1 contribution in respect of that week, and

(b)those earnings shall be treated as earnings upon which such a contribution has been paid,

for any of the purposes mentioned in subsection (3) below.

(3)The purposes are—

(a)the purposes of section 14(1)(a) below;

(b)the purposes of the provisions mentioned in section 21(5A)(a) to (c) below;

(c)any other purposes relating to contributory benefits; and

(d)any purposes relating to jobseeker’s allowance.

(4)Regulations may provide for any provision of this Act which, in whatever terms, refers—

(a)to primary Class 1 contributions being payable by a person, or

(b)otherwise to a person’s liability to pay such contributions,

to have effect for the purposes of this section with any prescribed modifications.

(5)Except as may be prescribed, nothing in this section applies in relation to earnings paid to or for the benefit of an employed earner after he attains pensionable age.

(6)Except as provided by this Act, this section applies in relation to earnings paid to or for the benefit of an earner in respect of any one employment of his irrespective of any other such payment of earnings in respect of any other employment of his.

(7)Regulations under this section shall be made by the Treasury.]

Textual Amendments

F33S. 6A inserted (22.12.1999 for specified purposes and 6.4.2000 otherwise) by 1999 c. 30, s. 74, Sch. 10 para. 3; S.I. 1999/3420, art. 2

Modifications etc. (not altering text)

C13S. 6A(2) modified (6.4.2000) by S.I. 2000/748, regs. 3-6

7“Secondary contributor”.N.I.

(1)For the purposes of this Act, the “secondary contributor” in relation to any payment of earnings to or for the benefit of an employed earner, is—

(a)in the case of an earner employed under a contract of service, his employer;

(b)in the case of an earner employed in an office with [F34general earnings] , either—

(i)such person as may be prescribed in relation to that office; or

(ii)if no person is prescribed, the government department, public authority or body of persons responsible for paying the [F34general earnings] of the office;

but this subsection is subject to subsection (2) below.

(2)In relation to employed earners who—

(a)are paid earnings in a tax week by more than one person in respect of different employments; or

(b)work under the general control or management of a person other than their immediate employer,

and in relation to any other case for which it appears to the [F35Treasury] that such provision is needed, regulations may provide that the prescribed person is to be treated as the secondary contributor in respect of earnings paid to or for the benefit of an earner.

[F36(3)Regulations under any provision of this section shall be made by the Treasury.]

Textual Amendments

F34Words in s. 7(1)(b) substituted (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 6 para. 194 (with Sch. 7)

F35Word in s. 7(2) substituted (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 8(2) (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)

F36S. 7(3) added (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 8(3) (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)

[F378 Calculation of primary Class 1 contributions.N.I.

(1)Where a primary Class 1 contribution is payable as mentioned in section 6(1)(a) above, the amount of that contribution is the aggregate of—

(a)the main primary percentage of so much of the earner’s earnings paid in the tax week, in respect of the employment in question, as—

(i)exceeds the current primary threshold (or the prescribed equivalent); but

(ii)does not exceed the current upper earnings limit (or the prescribed equivalent); and

(b)the additional primary percentage of so much of those earnings as exceeds the current upper earnings limit (or the prescribed equivalent).

(2)For the purposes of this Act—

(a)the main primary percentage is 11 per cent; and

(b)the additional primary percentage is 1 per cent;

but the main primary percentage is subject to alteration under section 129 of the Administration Act.

(3)Subsection (1) above is subject to—

(a)regulations under section 6(6) above;

(b)regulations under sections 116 to 119 below; and

(c)sections 37 and 38A of the Pensions Act (reduced rates of Class 1 contributions for earners in contracted-out employment).]

Textual Amendments

F37S. 8 substituted (with effect for 2003-04 and subsequent tax years) by National Insurance Contributions Act 2002 (c. 19), ss. 1(2), 8(2)

[F389 Calculation of secondary Class 1 contributions.N.I.

(1)Where a secondary Class 1 contribution is payable as mentioned in section 6(1)(b) above, the amount of that contribution shall be the secondary percentage of so much of the earnings paid in the tax week, in respect of the employment in question, as exceeds the current secondary threshold (or the prescribed equivalent).

[F39(2)For the purposes of this Act the secondary percentage is 12.8 per cent; but that percentage is subject to alteration under section 129 of the Administration Act.

(3)Subsection (1) above is subject to—

(a)regulations under section 6(6) above;

(b)regulations under sections 116 to 119 below; and

(c)sections 37 and 38A of the Pensions Act (reduced rates of Class 1 contributions for earners in contracted-out employment).]]

Textual Amendments

F38S. 9 substituted (22.12.1999 for specified purposes and 6.4.2000 otherwise) by 1999 c. 30, s. 74, Sch. 10 para. 5; S.I. 1999/3420, art. 2

F39S. 9(2)(3) substituted (with effect for 2003-04 and subsequent tax years) by National Insurance Contributions Act 2002 (c. 19), ss. 2(2), 8(2)

Class 1A contributionsN.I.

[F4010 Class 1A contributions: benefits in kind etc.N.I.

(1)Where—

[F41(a)for any tax year an earner is chargeable to income tax under ITEPA 2003 on an amount of general earnings received by him from any employment (“the relevant employment”),]

[F42(b)the relevant employment is both—

(i)employed earner’s employment, and

(ii)an employment, other than an excluded employment, for the purposes of the benefits code (see Chapter 2 of Part 3 of ITEPA 2003),]

(c)the whole or a part of the [F43general earnings] falls, for the purposes of Class 1 contributions, to be left out of account in the computation of the earnings paid to or for the benefit of the earner,

a Class 1A contribution shall be payable for that tax year, in accordance with this section, in respect of that earner and so much of the [F44general earnings] as falls to be so left out of account.

(2)Subject to section 10ZA below, a Class 1A contribution for any tax year shall be payable by—

(a)the person who is liable to pay the secondary Class 1 contribution relating to the last (or only) relevant payment of earnings in that tax year in relation to which there is a liability to pay such a Class 1 contribution; or

(b)if paragraph (a) above does not apply, the person who, if the [F45general earnings] in respect of which the Class 1A contribution is payable were earnings in respect of which Class 1 contributions would be payable, would be liable to pay the secondary Class 1 contribution.

(3)In subsection (2) above “relevant payment of earnings” means a payment which for the purposes of Class 1 contributions is a payment of earnings made to or for the benefit of the earner in respect of the relevant employment.

(4)The amount of the Class 1A contribution in respect of any [F46general earnings] shall be the Class 1A percentage of so much of [F47them] as falls to be left out of account as mentioned in subsection (1)(c) above.

(5)In subsection (4) above “the Class 1A percentage” means a [F48secondary percentage] for the tax year in question.

(6)No Class 1A contribution shall be payable for any tax year in respect of so much of any [F49general earnings] as is taken for the purposes of the making of Class 1B contributions for that year to be included in a PAYE settlement agreement.

[F50(7)In calculating for the purposes of this section the amount of general earnings received by an earner from an employment, a deduction under any of the excluded provisions is to be disregarded.

This subsection does not apply in relation to a deduction if subsection (7A) applies in relation to it.

(7A)Where—

(a)a deduction in respect of a matter is allowed under an excluded provision, and

(b)the amount deductible is at least equal to the whole of any corresponding amount which would (but for this section) fall by reference to that matter to be included in the general earnings mentioned in subsection (7),

the whole of the corresponding amount shall be treated as not included.

(7B)For the purposes of subsections (7) and (7A) “excluded provision” means—

(a)any provision of Chapter 2 of Part 5 of ITEPA 2003 (deductions for employee’s expenses) other than section 352 (limited deduction for agency fees paid by entertainers), and

(b)any provision of Chapter 5 of Part 5 of ITEPA 2003 (deductions for earnings representing benefits or reimbursed expenses).]

(8)The Treasury may by regulations—

[F51(a)modify the effect of subsections (7) and (7A) above by amending subsection (7B) so as to include any enactment contained in the Income Tax Acts within the meaning of “excluded provision”; or]

(b)make such amendments of [F52subsections (7) to (7B)] above as appear to them to be necessary or expedient in consequence of any alteration of the provisions of the Income Tax Acts relating to the charge to tax [F53on employment income] .

(9)The Treasury may by regulations provide—

(a)for Class 1A contributions not to be payable, in prescribed circumstances, by prescribed persons or in respect of prescribed persons or [F54general earnings] ;

(b)for reducing Class 1A contributions in prescribed circumstances.

F55(10)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F40S. 10 substituted (28.7.2000) by 2000 c. 19, s. 78(2)

F41S. 10(1)(a) substituted (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 6 para. 195(2) (with Sch. 7)

F42S. 10(1)(b) substituted (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 6 para. 195(3) (with Sch. 7)

F43Words in s. 10(1)(c) substituted (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 6 para. 195(4) (with Sch. 7)

F44Words in s. 10(1) substituted (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 6 para. 195(5) (with Sch. 7)

F45Words in s. 10(2)(b) substituted (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 6 para. 195(6) (with Sch. 7)

F46Words in s. 10(4) substituted (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 6 para. 195(7)(a) (with Sch. 7)

F47Word in s. 10(4) substituted (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 6 para. 195(7)(b) (with Sch. 7)

F48Words in s. 10(5) substituted (with effect for 2003-04 and subsequent tax years) by National Insurance Contributions Act 2002 (c. 19), ss. 6, 8(2), Sch. 1 para. 21

F49Words in s. 10(6) substituted (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 6 para. 195(8) (with Sch. 7)

F50S. 10(7)-(7B) substituted for s. 10(7) (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 6 para. 195(9) (with Sch. 7)

F51S. 10(8)(a) substituted (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 6 para. 195(10) (with Sch. 7)

F52Words in s. 10(8)(b) substituted (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 6 para. 195(11)(a) (with Sch. 7)

F53Words in s. 10(8)(b) substituted (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 6 para. 195(11)(b) (with Sch. 7)

F54Words in s. 10(9)(a) substituted (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 6 para. 195(12) (with Sch. 7)

F55S. 10(10) repealed (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 6 para. 195(13), Sch. 8 Pt. 1 (with Sch. 7)

[F5610ZA Liability of third party provider of benefits in kind.N.I.

(1)This section applies, where—

(a)a Class 1A contribution is payable for any tax year in respect of the whole or any part of [F57general earnings] received by an earner;

(b)[F58the general earnings, in so far as they are ones in respect of which] such a contribution is payable, [F59consist] in a benefit provided for the earner or a member of his family or household;

(c)the person providing the benefit is a person other than the person (“the relevant employer”) by whom, but for this section, the Class 1A contribution would be payable in accordance with section 10(2) above; and

(d)the provision of the benefit by that other person has not been arranged or facilitated by the relevant employer.

(2)For the purposes of this Act if—

(a)the person providing the benefit pays an amount for the purpose of discharging any liability of the earner to income tax for any tax year, and

(b)the income tax in question is tax chargeable in respect of the provision of the benefit or of the making of the payment itself,

the amount of the payment shall be treated as if it were [F60general earnings] consisting in the provision of a benefit to the earner in that tax year and falling, for the purposes of Class 1 contributions, to be left out of account in the computation of the earnings paid to or for the benefit of the earner.

(3)Subject to subsection (4) below, the liability to pay any Class 1A contribution in respect of—

(a)the benefit provided to the earner, and

(b)any further benefit treated as so provided in accordance with subsection (2) above,

shall fall on the person providing the benefit, instead of on the relevant employer.

(4)Subsection (3) above applies in the case of a Class 1A contribution for the tax year beginning with 6th April 2000 only if the person providing the benefit in question gives notice in writing to the Inland Revenue on or before 6th July 2001 that he is a person who provides benefits in respect of which a liability to Class 1A contributions is capable of falling by virtue of this section on a person other than the relevant employer.

(5)The Treasury may by regulations make provision specifying the circumstances in which a person is or is not to be treated for the purposes of this Act as having arranged or facilitated the provision of any benefit.

(6)In this section references to a member of a person’s family or household shall be construed in accordance with [F61section 721(5) of ITEPA 2003] .]

Textual Amendments

F56Ss. 10ZA, 10ZB inserted (28.7.2000) by 2000 c. 19, s. 79(1)

F57Words in s. 10ZA(1)(a) substituted (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 6 para. 196(2) (with Sch. 7)

F58Words in s. 10ZA(1)(b) substituted (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 6 para. 196(3)(a) (with Sch. 7)

F59Word in s. 10ZA(1)(b) substituted (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 6 para. 196(3)(b) (with Sch. 7)

F60Words in s. 10ZA(2) substituted (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 6 para. 196(4) (with Sch. 7)

F61Words in s. 10ZA(6) substituted (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 6 para. 196(5) (with Sch. 7)

[F6210ZB Non-cash vouchers provided by third parties.N.I.

(1)In section 10ZA above references to the provision of a benefit include references to the provision of a non-cash voucher.

(2)Where—

(a)a non-cash voucher is received by any person from [F63employment which is an excluded employment for the purposes of the benefits code, and]

(b)the case would be one in which the conditions in section 10ZA(1)(a) to (d) above would be satisfied in relation to the provision of that voucher [F64if that employment were not an excluded employment] ,

sections 10 and 10ZA above shall have effect in relation to the provision of that voucher, and to any such payment in respect of the provision of that voucher as is mentioned in section 10ZA(2) above, [F65as if that employment were not an excluded employment] .

(3)In this section “non-cash voucher” has the same meaning as in [F66section 84 of ITEPA 2003] .]

Textual Amendments

F62Ss. 10ZA, 10ZB inserted (28.7.2000) by 2000 c. 19, s. 79(1)

F63Words in s. 10ZB(2)(a) substituted (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 6 para. 197(2) (with Sch. 7)

F64Words in s. 10ZB(2)(b) substituted (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 6 para. 197(3) (with Sch. 7)

F65Words in s. 10ZB(2) substituted (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 6 para. 197(4) (with Sch. 7)

F66Words in s. 10ZB(3) substituted (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 6 para. 197(5) (with Sch. 7)

[F67Class 1B contributions]N.I.

Textual Amendments

F67Cross-heading and s. 10A inserted (9.9.1998 for the purpose only of making regulations or orders and otherwise 6.4.1999) by S.I. 1998/1506 (N.I. 10), art. 50; S.R. 1998/312, art. 2(b), Sch. Pt. II

10A[F68 Class 1B contributions.]N.I.

(1)Where for any tax year a person is accountable to the Inland Revenue in respect of income tax on [F69general earnings] of his employees in accordance with a PAYE settlement agreement, a Class 1B contribution shall be payable by him for that tax year in accordance with this section.

(2)The Class 1B contribution referred to in subsection (1) above is payable in respect of—

(a)the amount of any of [F70the general earnings included] in the PAYE settlement agreement which are chargeable emoluments; and

(b)the total amount of income tax in respect of which the person is accountable for the tax year in accordance with the PAYE settlement agreement.

(3)The amount of the Class 1B contribution referred to in subsection (1) above shall be the Class 1B percentage of the aggregate of the amounts mentioned in paragraphs (a) and (b) of subsection (2) above.

(4)[F71General earnings are chargeable emoluments] for the purposes of subsection (2) above if, apart from section 6(2A) or 10(8A) above, the person accountable in accordance with the PAYE settlement agreement would be liable or entitled to pay secondary Class 1 contributions or Class 1A contributions in respect of them.

(5)Where—

(a)the PAYE settlement agreement was entered into after the beginning of the tax year; and

(b)Class 1 contributions were due in respect of any [F72general earnings] before it was entered into,

those [F72general earnings] shall not be taken to be included in the PAYE settlement agreement.

[F73(6)In subsection (3) above “the Class 1B percentage” means a percentage rate equal to [F74the secondary percentage] for the tax year in question.]

(7)[F75The Treasury may by regulations] provide for persons to be excepted in prescribed circumstances from liability to pay Class 1B contributions.

Textual Amendments

F68S. 10A and the preceding cross-note inserted (9.9.1998 for the purpose only of making regulations or orders and otherwise 6.4.1999) by S.I. 1998/1506 (N.I. 10), art. 5; S.R. 1998/312, art. 2(b), Sch. Pt. II

F69Words in s. 10A(1) substituted (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 6 para. 198(2) (with Sch. 7)

F70Words in s. 10A(2)(a) substituted (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 6 para. 198(3) (with Sch. 7)

F71Words in s. 10A(4) substituted (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 6 para. 198(4) (with Sch. 7)

F72Words in s. 10A(5) substituted (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 6 para. 198(5) (with Sch. 7)

F73S. 10A(6) substituted (6.4.2000) by 1999 c. 30, s. 78; S.I. 1999/3420, art. 4(a)

F74Words in s. 10A(6) substituted (with effect for 2003-04 and subsequent tax years) by National Insurance Contributions Act 2002 (c. 19), ss. 6, 8(2), Sch. 1 para. 22

F75Words in s. 10A(7) substituted (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 12 (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)

Class 2 contributionsN.I.

11 Liability for Class 2 contributions.N.I.

(1)Every self-employed earner who is over the age of 16 shall be liable to pay Class 2 contributions at the rate of [F76£2·00] a week, subject to the provisions of this section and sections 12 and 19(4)(b) below.

(2)No Class 2 contributions shall be payable by an earner in respect of any period after he attains pensionable age.

(3)[F77The Treasury may by regulations] make provision so that an earner is liable for a weekly rate of Class 2 contributions higher than that specified in subsection (1) above where—

(a)in respect of any employment of his, he is treated by regulations under section 2(2)(b) above as being a self-employed earner; and

(b)in any period or periods he has earnings from that employment and—

(i)those earnings are such that (disregarding their amount) he would be liable for Class 1 contributions in respect of them if he were not so treated in respect of the employment, and

(ii)no Class 4 contribution is payable in respect of the earnings by virtue of regulations under section 18(1) below.

(4)[F77The Treasury may by regulations] provide for an earner otherwise liable for Class 2 contributions in respect of employment as a self-employed earner to be excepted from the liability in respect of any period in which his earnings from such employment are, or are treated by regulations as being, less than [F78£4,095] a tax year.

(5)Regulations made for the purposes of subsection (4) above shall not except a person from liability to pay contributions otherwise than on his own application, but may provide for so excepting a person with effect from any date not earlier than 13 weeks before the date on which his application was made.

Textual Amendments

F76Words in s. 11(1) substituted (6.4.2000) by S.I. 2000/755, art. 2(a)

F77Words in s. 11(3)(4) substituted (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 13 (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)

12 Late paid Class 2 contributions.N.I.

(1)This section applies to any Class 2 contribution paid in respect of a week falling within a tax year (“the contribution year”) earlier than the tax year in which it is paid (“the payment year”).

(2)Subject to subsections (3) to (5) below, the amount of a contribution to which this section applies shall be the amount which the earner would have had to pay if he had paid the contribution in the contribution year.

(3)Subject to subsections (4) to (6) below, in any case where—

(a)the earner pays an ordinary contribution to which this section applies after the end of the tax year immediately following the contribution year; and

(b)the weekly rate of ordinary contributions for the week in respect of which the contribution was payable in the contribution year differs from the weekly rate applicable at the time of payment in the payment year,

the amount of the contribution shall be computed by reference to the highest weekly rate of ordinary contributions in the period beginning with the week in respect of which the contribution is paid and ending with the day on which it is paid.

(4)The [F79Treasury] may by regulations direct that subsection (3) above shall have effect in relation to a higher-rate contribution to which this section applies subject to such modifications as may be prescribed.

(5)Subject to subsection (6) below, for the purposes of proceedings in any court relating to an earner’s failure to pay Class 2 contributions, the amount of each contribution which he is to be treated as having failed to pay is the amount which he would have paid in accordance with subsections (1) to (3) above or regulations under subsection (6) below if he had paid that contribution on the date on which the proceedings commenced.

(6)The [F79Treasury] may by regulations provide that the amount of any contribution which, apart from the regulations, would fall to be computed in accordance with subsection (3) or (5) above shall instead be computed by reference to a tax year not earlier than the contribution year but earlier—

(a)in a case falling within subsection (3) above, than the payment year; and

(b)in a case falling within subsection (5) above, than the tax year in which the proceedings commenced.

(7)For the purposes of this section—

(a)proceedings in the High Court or a county court commence when an action commences;

[F80(aa)civil proceedings in a magistrates’ court commence when a complaint is made;] and

(b)proceedings under section 108 of the Administration Act (offences relating to contributions) commence when a complaint is made.

(8)In this section—

  • ordinary contribution” means a contribution under section 11(1) above; and

  • higher-rate contribution” means a contribution under regulations made under section 11(3) above.

Textual Amendments

F79Words in s. 12(4)(6) substituted (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 14 (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)

F80S. 12(7)(aa) inserted (1.4.1999) by S.I. 1999/671, art. 24(2), Sch. 8 para. 1 (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)

Class 3 contributionsN.I.

13 Class 3 contributions.N.I.

(1)[F81The Treasury shall by regulations] provide for earners and others, if over the age of 16, to be entitled if they so wish, but subject to any prescribed conditions, to pay Class 3 contributions; and, subject to the following provisions of this section, the amount of a Class 3 contribution shall be [F82£6.95] .

(2)Payment of Class 3 contributions shall be allowed only with a view to enabling the contributor to satisfy contribution conditions of entitlement to benefit by acquiring the requisite earnings factor for the purposes described in section 22 below.

(3)[F81The Department may by regulations] provide for Class 3 contributions, although paid in one tax year, to be appropriated in prescribed circumstances to the earnings factor of another tax year.

(4)The amount of a Class 3 contribution in respect of a tax year earlier than the tax year in which it is paid shall be the same as if it had been paid in the earlier year and in respect of that year, unless it falls to be calculated in accordance with subsection (6) below or regulations under subsection (7) below.

(5)In this section—

  • the payment year” means the tax year in which a contribution is paid; and

  • the contribution year” means the earlier year mentioned in subsection (4) above.

(6)Subject to subsection (7) below, in any case where—

(a)a Class 3 contribution is paid after the end of the next tax year but one following the contribution year; and

(b)the amount of a Class 3 contribution applicable had the contribution been paid in the contribution year differs from the amount of a Class 3 contribution applicable at the time of payment in the payment year,

the amount of the contribution shall be computed by reference to the highest of those two amounts and of any other amount of a Class 3 contribution in the intervening period.

(7)The [F81Treasury] may by regulations provide that the amount of a contribution which apart from the regulations would fall to be computed in accordance with subsection (6) above shall instead be computed by reference to the amount of a Class 3 contribution for a tax year earlier than the payment year but not earlier than the contribution year.

Textual Amendments

F81Words in s. 13(1)(3)(7) substituted (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 15 (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)

14 Restriction on right to pay Class 3 contributions.N.I.

(1)No person shall be entitled to pay a Class 3 contribution in respect of any tax year if his earnings factor, or the aggregate of his earnings factors, for that year derived—

(a)in the case of 1987-88 or any subsequent year, from earnings upon which Class 1 contributions have been paid or treated as paid or from Class 2 contributions actually paid; or

(b)in the case of any earlier year, from contributions actually paid,

is equal to or exceeds the qualifying earnings factor for that year; and regulations may provide for precluding the payment of Class 3 contributions in other cases.

(2)Regulations may provide for the repayment of Class 3 contributions that have been paid in cases where their payment was precluded by, or by regulations made under, subsection (1) above.

(3)Contributions repayable by virtue of regulations under subsection (2) above shall, for the purpose of determining the contributor’s entitlement to any benefit, be treated as not having been paid (but nothing in this subsection shall be taken to imply that any other repayable contributions are to be treated for the purposes of benefit as having been paid).

[F83(4)Where primary Class 1 contributions have been paid or treated as paid on any part of a person’s earnings, subsection (1)(a) above shall have effect as if such contributions had been paid or treated as paid on so much of those earnings as did not exceed the upper earnings limit.]

[F84(5)Regulations under subsection (1) or (2) above shall be made by the Treasury.]

Textual Amendments

F84S. 14(5) added (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 16 (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)

Class 4 contributionsN.I.

15 Class 4 contributions recoverable under the Income Tax Acts.N.I.

(1)Class 4 contributions shall be payable for any tax year in respect of all annual profits or gains which—

(a)are immediately derived from the carrying on or exercise of one or more trades, professions or vocations, and

(b)are profits or gains chargeable to income tax under Case I or Case II of Schedule D for the year of assessment corresponding to that tax year.

(2)Class 4 contributions in respect of profits or gains shall be payable—

(a)in the same manner as any income tax which is, or would be, chargeable in respect of those profits or gains (whether or not income tax in fact falls to be paid), and

(b)by the person on whom the income tax is (or would be) charged,

in accordance with assessments made from time to time under the Income Tax Acts as applied and modified by section 16(1) to (3) of the Great Britain Contributions and Benefits Act.

[F85(3)The amount of a Class 4 contribution under this section for any tax year is equal to the aggregate of—

(a)the main Class 4 percentage of so much of the profits or gains referred to in subsection (1) above (computed in accordance with Schedule 2 to the Great Britain Contributions and Benefits Act, the text of which is set out as Schedule 2 to this Act) as exceeds £4,615 but does not exceed £30,940; and

(b)the additional Class 4 percentage of so much of those profits or gains as exceeds £30,940;

but the figures specified in this subsection are subject to alteration under section 129 of the Administration Act.

(3ZA)For the purposes of this Act—

(a)the main Class 4 percentage is 8 per cent; and

(b)the additional Class 4 percentage is 1 per cent;

but the main Class 4 percentage is subject to alteration under section 129 of the Administration Act.]

[F86(3A)Where income tax is (or would be) charged on a member of a limited liability partnership in respect of profits or gains arising from the carrying on of a trade or profession by the limited liability partnership, Class 4 contributions shall be payable by him if they would be payable were the trade or profession carried on in partnership by the members.]

(4)The reference in subsection (1) above to profits or gains chargeable to income tax under Case I or Case II of Schedule D shall be taken to include a reference to profits or gains consisting of a payment of enterprise allowance chargeable to income tax under Case VI of Schedule D by virtue of section 127(2) of the M3Income and Corporation Taxes Act 1988.

(5)For the purposes of this section the year of assessment which corresponds to a tax year is the year of assessment (within the meaning of the Tax Acts) which consists of the same period as that tax year.

Textual Amendments

F85S. 15(3)(3ZA) substituted (with effect for 2003-04 and subsequent tax years) for s. 15(3) by National Insurance Contributions Act 2002 (c. 19), ss. 3(2), 8(2)

Marginal Citations

16 Destination of Class 4 contributions.N.I.

F87. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F87S. 16 repealed (with effect for 2003-04 and subsequent tax years) by National Insurance Contributions Act 2002 (c. 19), ss. 7, 8(2), Sch. 2

17 Exceptions, deferment and incidental matters relating to Class 4 contributions.N.I.

(1)[F88The Inland Revenue may by regulations] provide—

(a)for excepting persons from liability to pay Class 4 contributions [F89, or any prescribed part of such contributions,] in accordance with section 15(1) to (3) above and section 16(1) to (3) of the Great Britain Contributions and Benefits Act; or

(b)for deferring any person’s liability,

F90. . .

(2)Exception from liability, or deferment, under subsection (1) above may, in particular, be by reference—

(a)to a person otherwise liable for contributions being under a prescribed age at the beginning of a tax year;

(b)to a person having attained pensionable age;

(c)to a person being in receipt of earnings in respect of which primary Class 1 contributions are, or may be, payable; or

(d)to a person not satisfying prescribed conditions as to residence or presence in the United Kingdom.

(3)[F88The Inland Revenue may by regulations] provide for any incidental matters arising out of the payment of any Class 4 contributions recovered by the Inland Revenue, including in particular the return, in whole or in part, of such contributions in cases where—

(a)payment has been made in error; or

(b)repayment ought for any other reason to be made.

(4)[F88The Inland Revenue may by regulations] provide for any matters arising out of the deferment of liability [F91to pay Class 4 contributions, or any part of such contributions,] under subsection (1) above, including in particular provision for the amount of a person’s profits or gains (as computed in accordance with the Great Britain Contributions and Benefits Act) to be certified by the Inland Revenue to F92. . . the person liable.

(5)F93. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F94(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F88Words in s. 17(1)(3)(4) substituted (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 17(2)(3) (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)

F89Words in s. 17(1) inserted (with effect for 2003-04 and subsequent tax years) by National Insurance Contributions Act 2002 (c. 19), ss. 6, 8(2), Sch. 1 para. 23(2)

F90Words in s. 17(1) repealed (omitted 24.3.1999 for specified purposes only and wholly repealed 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 7(a) (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)

F91Words in s. 17(4) substituted (with effect for 2003-04 and subsequent tax years) by National Insurance Contributions Act 2002 (c. 19), ss. 6, 8(2), Sch. 1 para. 23(3)

F92Words in s. 17(4) repealed (omitted 24.3.1999 for specified purposes only and wholly repealed 1.4.1999) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 7(b) (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)

F93S. 17(5) repealed (with effect for 2003-04 and subsequent tax years) by National Insurance Contributions Act 2002 (c. 19), ss. 7, 8(2), Sch. 2

F94S. 17(6) repealed (1.4.1999) by S.I. 1999/671, arts. 4, 24(3), Sch. 3 para. 17(4), Sch. 9 Pt. I (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)

18 Class 4 contributions recoverable under regulations.N.I.

(1)[F95The Inland Revenue may by regulations make provision] so that where—

(a)an earner, in respect of any one or more employments of his, is treated by regulations under section 2(2)(b) above as being self-employed; and

(b)in any tax year he has earnings from any such employment (one or more) which fall within paragraph (b)(i) of subsection (3) of section 11 above but is not liable for a higher weekly rate of Class 2 contributions by virtue of regulations under that subsection; and

(c)the total of those earnings exceeds [F96£4,615] ,

he is to be liable, in respect of those earnings, to pay a Class 4 contribution F97. . . .

[F98(1A)The amount of a Class 4 contribution payable by virtue of regulations under this section is equal to the aggregate of—

(a)the main Class 4 percentage of so much of the total of the earnings referred to in subsection (1)(b) above as exceeds £4,615 but does not exceed £30,940; and

(b)the additional Class 4 percentage of so much of that total as exceeds £30,940;

but the figures specified in this subsection are subject to alteration under section 129 of the Administration Act.]

(2)[F99In relation to Class 4 contributions payable by virtue of regulations under this section], [F95regulations made by the Inland Revenue may]

(a)apply any of the provisions of Schedule 1 to this Act (except a provision conferring power to make regulations); and

(b)make any such provision as may be made by regulations under that Schedule, except paragraph 6.

Textual Amendments

F95Words in s. 18(1)(2) substituted (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 18 (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)

F97Words in s. 18(1) repealed (with effect for 2003-04 and subsequent tax years) by National Insurance Contributions Act 2002 (c. 19), ss. 7, 8(2), Sch. 2

F98S. 18(1A) inserted (with effect for 2003-04 and subsequent tax years) by National Insurance Contributions Act 2002 (c. 19), ss. 3(4), 8(2)

F99Words in s. 18(2) substituted (24.3.1999 for specified purposes and 1.4.1999 otherwise) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 8 (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)

GeneralN.I.

19 General power to regulate liability for contributions.N.I.

(1)Regulations may provide either generally or in relation to—

(a)any prescribed category of earners; or

(b)earners in any prescribed category of employments,

that their liability in a particular tax year in respect of contributions of prescribed classes [F100, or any prescribed part of such contributions,] is not to exceed such maximum amount or amounts as may be prescribed.

(2)Regulations made for the purposes of subsection (1) above may provide—

(a)for an earner whose liability is subject to a maximum prescribed under that subsection to be liable in the first instance for the full amount of any contributions due from him apart from the regulations, or to be relieved from liability for such contributions in prescribed circumstances and to the prescribed extent; and

(b)for contributions paid in excess of any such maximum to be repaid at such times, and in accordance with such conditions, as may be prescribed.

(3)Regulations may provide, in relation to earners otherwise liable for contributions of any class [F101or any part of such contributions] , for excepting them from the liability for such periods, and in such circumstances, as may be prescribed.

(4)As respects any woman who was married or a widow on 6th April 1977 (the date of the coming into force of the repeal of the old provisions that primary Class 1 contributions might be paid at a reduced rate and Class 2 contributions need not be paid by a married woman or a widow) regulations shall provide—

(a)for enabling her to elect that [F102so much of her liability in respect of primary Class 1 contributions as is attributable to section 8(1)(a) above] shall be a liability to contribute at such reduced rate as may be prescribed; and

(b)either for enabling her to elect that her liability in respect of Class 2 contributions shall be a liability to contribute at such reduced rate as may be prescribed or for enabling her to elect that she shall be under no liability to pay such contributions; and

(c)for enabling her to revoke any such election.

(5)Regulations under subsection (4) above may—

(a)provide for the making or revocation of any election under the regulations to be subject to prescribed exceptions and conditions;

(b)preclude a person who has made such an election from paying Class 3 contributions while the election has effect;

(c)provide for treating an election made or revoked for the purpose of any provision of the regulations as made or revoked also for the purpose of any other provision of the regulations;

(d)provide for treating an election made in accordance with regulations under section 125(2) of the 1975 Act as made for the purpose of regulations under subsection (4) above.

[F103(5A)Regulations under any of subsections (1) to (5) above shall be made by the Treasury.]

(6)[F104The Department may by regulations] provide for earnings factors to be derived, for such purposes as may be prescribed, as follows, that is to say—

(a)in the case of earnings factors for 1987-88 or any subsequent tax year—

(i)from earnings upon which primary Class 1 contributions are paid at a reduced rate by virtue of regulations under subsection (4) above; or

(ii)from Class 2 contributions paid at a reduced rate by virtue of such regulations; and

(b)in the case of earnings factors for any earlier tax year, from contributions which are paid at a reduced rate by virtue of regulations under subsection (4) above;

and if provision is made for a person to have earnings factors so derived for the purpose of establishing entitlement to any benefit, the regulations may, in relation to that person, vary or add to the requirements for entitlement to that benefit.

Textual Amendments

F100Words in s. 19(1) inserted (with effect for 2003-04 and subsequent tax years) by National Insurance Contributions Act 2002 (c. 19), ss. 6, 8(2), Sch. 1 para. 24(2)

F101Words in s. 19(3) inserted (with effect for 2003-04 and subsequent tax years) by National Insurance Contributions Act 2002 (c. 19), ss. 6, 8(2), Sch. 1 para. 24(3)

F102Words in s. 19(4)(a) substituted (with effect for 2003-04 and subsequent tax years) by National Insurance Contributions Act 2002 (c. 19), ss. 6, 8(2), Sch. 1 para. 24(4)

F103S. 19(5A) inserted (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 19(2) (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)

F104Words in s. 19(6) substituted (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 19(3) (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)

[F10519A Class 1, 1A or 1B contributions paid in error.N.I.

(1)This section applies where—

(a)payments by way of Class 1, Class 1A or Class 1B contributions are made in respect of earnings paid to or for the benefit of an earner (or in respect of a benefit made available to an earner) in 1998-99 or a subsequent tax year (“year 1”);

(b)the payments are made in error, in that the employment from which the earnings are derived (or by reason of which the benefit is made available) is not employed earner’s employment; and

(c)the person making the payments has not been notified of the error by the [F106Inland Revenue] before the end of the tax year following year 1 (“year 2”).

(2)After the end of year 2 the earner shall, except in such circumstances as may be prescribed, be treated for all purposes relating to—

(a)contributions and contributory benefits; and

(b)statutory sick pay and statutory maternity pay,

as if the earnings were derived from (or the benefit were made available by reason of) employed earner’s employment.

[F107(3)Regulations under subsection (2) above shall be made by the Treasury.]]

Textual Amendments

F105S. 19A inserted (10.3.1999 for specified purposes and 6.4.1999 otherwise) by S.I. 1998/1506 (N.I. 10), art. 51; S.R. 1999/102, art. 2(b), Sch. Pt. II

F106Words in s. 19A(1)(c) substituted (26.3.1999 for specified purposes and 1.4.1999 otherwise) by S.I. 1999/671, art. 24(2), Sch. 8 para. 2 (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(b)(c), Schs. 1, 2 (subject to arts. 3-6)

F107S. 19A(3) added (1.4.1999) by S.I. 1999/671, art. 4, Sch. 3 para. 20 (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)

Part IIN.I. Contributory Benefits

Modifications etc. (not altering text)

C14Pt. II (ss. 20-62) excluded (13.1.1993) by S.R. 1979/242, reg. 4(1) (as substituted (13.1.1993) by S.R. 1992/557, reg. 3).

C16Pt. II: power to amend or modify conferred (1.12.1999) by S.I. 1999/3147 (N.I. 11), art. 49(2)(3)

C17Pt. II modified (temp. from 1.12.1999 to 5.10.2002) by S.I. 1999/3147 (N.I. 11), art. 49(7)(a) (the temp. modification lapsing on the coming into operation of S.R. 2001/441, which modifies specified provisions of Pt. II, on 6.10.2002)

PreliminaryN.I.

20 Descriptions of contributory benefits.N.I.

(1)Contributory benefits under this Part of this Act are of the following descriptions, namely—

F108(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F109(b)incapacity benefit, comprising—

(i)short-term incapacity benefit; and

(ii)long-term incapacity benefit;]

(d)maternity allowance (with increase for adult dependants);

(e)widow’s benefit, comprising—

F110(i). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(ii)widowed mother’s allowanceF111...;

(iii)widow’s pension;

[F112(ea)bereavement benefits, comprising—

(i)bereavement payment;

(ii)widowed parent’s allowanceF111...;

(iii)bereavement allowance;]

(f)retirement pensions of the following categories—

(i)Category A, payable to a person by virtue of his own contributions (with increase for adult F113... dependants); and

[F114(ii)Category B, payable to a person by virtue of the contributions of a spouseF111...;]

[F115(fa)shared additional pensions;]

(g)for existing beneficiaries only, child’s special allowance.

(2)In this Act—

  • long-term benefit” means—

    (a)

    [F116long-term incapacity benefit;]

    (b)

    a widowed mother’s allowance;

[F117(ba)a widowed parent’s allowance;

(bb)a bereavement allowance;]

(c)a widow’s pension; and

(d)a Category A or Category B retirement pension; and

[F118(e)a shared additional pension;]

  • short-term benefit” means—

    (a)

    F119. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F120(b)short-term incapacity benefit; and]

(c)maternity allowance.

(3)The provisions of this Part of this Act are subject to the provisions of [F121Chapter II of Part III of the Pensions Act (reduction in state scheme contributions and social security benefits for members of certified schemes)].

Textual Amendments

F108S. 20(1)(a) repealed (7.10.1996) by S.I. 1995/2705 (N.I. 15), art. 40(2), Sch. 3; S.R. 1996/401, art. 2

F109S. 20(1)(b) substituted for s. 20(1)(b)(c) (13.4.1995) by S.I. 1994/1898 (N.I. 12), art. 13(1), Sch. 1 Pt. I para. 2(2); S.R. 1994/450, art. 2(d), Sch. Pt. IV

F110S. 20(1)(e)(i) repealed (24.4.2000 for specified purposes and 9.4.2001 otherwise) by S.I. 1999/3147 (N.I. 11), arts. 67, 76, Sch. 8 para. 2(2)(a), Sch. 10 Pt. V; S.R. 2000/133, art. 2(3)(a), Sch. Pt. I

F111Words in s. 20(1) repealed (6.4.2003) by Tax Credits Act 2002 (c. 21), s. 61, Sch. 6; S.I. 2003/962, art. 2(3)(e), Sch. 1

F112S. 20(1)(ea) inserted (24.4.2000 for specified purposes and 9.4.2001 otherwise) by S.I. 1999/3147 (N.I. 11), art. 67, Sch. 8 para. 2(2)(b); S.R. 2000/133, art. 2(3)(a), Sch. Pt. I

F113Words in s. 20(1)(f)(i) repealed (6.4.2003) by Tax Credits Act 2002 (c. 21), s. 61, Sch. 6; S.I. 2003/962, art. 2(3)(e), Sch. 1

F114S. 20(1)(f)(ii) substituted (16.12.1995 subject to Sch. 2 of the amending S.I.) by S.I. 1995/3213 (N.I. 22), arts. 1(3), 123, Sch. 2 Pt. III para. 18(1)

F116S. 20(2): para. (a) in definition of “long-term benefit”substituted (13.4.1995) by S.I. 1994/1898 (N.I. 12), art. 13(1), Sch. 1 Pt. I para. 2(3)(a); S.R. 1994/450, art. 2(d), Sch. Pt. IV

F117S. 20(2): paras. (ba)(bb) in definition of “long-term benefit”inserted (24.4.2000 for specified purposes and 9.4.2001 otherwise) by S.I. 1999/3147(N.I. 11), art. 67, Sch. 8 para. 2(3); S.R. 2000/133, art. 2(3)(a), Sch. Pt. I

F118S. 20(2): para. (e) in definition of “long-term benefit”inserted (1.12.2000) by S.I. 1999/3147 (N.I. 11), art. 74, Sch. 9 para. 5(3); S.R. 2000/133, art. 2(3)(d), Sch. Pt. IV

F119Words in definition in s. 20(2) repealed (7.10.1996) by S.I. 1995/2705 (N.I. 15), art. 40(2), Sch. 3; S.R. 1996/401, art. 2

F120S. 20(2): para. (b) in definition substituted (13.4.1995) by S.I. 1994/1898 (N.I. 12), art. 13(1), Sch. 1 Pt. I para. 2(3)(b); S.R. 1994/450, art. 2, Sch. Pt. IV

F121Words in s. 20(3) substituted (7.2.1994) by 1993 c. 49, s. 184, Sch. 7 para. 30; S.R. 1994/17, art. 2

21 Contribution conditions.N.I.

(1)Entitlement to any benefit specified in section 20(1) above, [F122other than [F123short-term incapacity benefit under subsection (1)(b) of section 30A below,] long-term incapacity benefit under section [F124subsection (5) of that section][F125, maternity allowance under section 35 below] or short-term or long-term incapacity benefit under section 40 or 41 below][F126or a shared additional pension under section 55A below], depends on contribution conditions being satisfied (either by the claimant or by some other person, according to the particular benefit).

(2)The class or classes of contribution which, for the purposes of subsection (1) above, are relevant in relation to each of those benefits are as follows—

Short-term benefit
F127. . .F127. . .
[F128Short-term incapacity benefit under section [F12930A(1)(a)] below]Class 1 or 2
[F130Maternity allowance][F130Class 1 or 2]
Other benefits
[F131Bereavement payment]Class 1, 2 or 3
Widowed mother’s allowanceClass 1, 2 or 3
[F132Widowed parent’s allowanceClass 1, 2 or 3
Bereavement allowanceClass 1, 2 or 3]
Widow’s pensionClass 1, 2 or 3
Category A retirement pensionClass 1, 2 or 3
Category B retirement pensionClass 1, 2 or 3
Child’s special allowanceClass 1, 2 or 3

(3)The relevant contribution conditions in relation to the benefits specified in subsection (2) above are those specified in Part I of Schedule 3 to this Act.

(4)Part II of Schedule 3 to this Act shall have effect as to the satisfaction of contribution conditions for benefit [F133, other than maternity allowance,] in certain cases where a claim for short-term benefit or a [F134bereavement payment] is, or has on a previous occasion been, made in the first or second year after that in which the contributor concerned first became liable for primary Class 1 or Class 2 contributions.

(5)In subsection (4) above and Schedule 3 to this Act—

(a)the contributor concerned”, for the purposes of any contribution condition, means the person by whom the condition is to be satisfied;

(b)a relevant class”, in relation to any benefit, means a class of contributions specified in relation to that benefit in subsection (2) above;

(c)the earnings factor”—

(i)where the year in question is 1987-88 or any subsequent tax year, means, in relation to a person, the aggregate of his earnings factors derived from [F135so much of his earnings as did not exceed the upper earnings limit and] upon which primary Class 1 contributions have been paid or treated as paid and from his Class 2 and Class 3 contributions; and

(ii)where the year in question is any earlier tax year, means, in relation to a person’s contributions of any class or classes, the aggregate of his earnings factors derived from all those contributions;

(d)except in the expression “benefit year”, “year” means a tax year.

[F136(5A)Where primary Class 1 contributions have been paid or treated as paid on any part of a person’s earnings, the following provisions, namely—

(a)subsection (5)(c) above;

(b)sections 22(1)(a) [F137, (2A)] and (3)(a), 23(3)(a), 24(2)(a), [F13844(6)(za) and (a)] F139... below; and

(c)paragraphs 2(4)(a) and (5)(a), 4(2)(a), 5(2)(b) and (4)(a) and 7(4)(a) of Schedule 3 to this Act,

shall have effect as if such contributions had been paid or treated as paid on so much of the earnings as did not exceed the upper earnings limit.]

(6)In this Part of this Act “benefit year” means a period—

(a)beginning with the first Sunday in January in any calendar year, and

(b)ending with the Saturday immediately preceding the first Sunday in January in the following calendar year;

but for any prescribed purposes of this Part of this Act “benefit year” may by regulations be made to mean such other period (whether or not a period of 12 months) as may be specified in the regulations.

Textual Amendments

F123Words in s. 21(1) inserted (3.11.2000 for specified purposes and 6.4.2001 otherwise) by S.I. 1999/3147 (N.I. 11), art. 67, Sch. 8 para. 20(a); S.R. 2000/332, art. 2(3)(e)(4)(5)

F124S. 21(1): By S.I. 1999/3147 (N.I. 11), art. 67, Sch. 8 para. 20(a); S.R. 2000/332, art. 2(3)(e)(4)(5) it is provided that, for the words "30A below", there are substituted (3.11.2000 for specified purposes and 6.4.2001 otherwise) the words "subsection (5) of that section"

F125Words in s. 21(1) inserted (12.1.2000 and 2.4.2000 for specified purposes and otherwise prosp.) by S.I. 1999/3147 (N.I. 11), art. 67, Sch. 8 Pt. VI para. 29(2); S.R. 1999/494, art. 2(1)(b)

F127Entry in s. 21(2) repealed (7.10.1996) by S.I. 1995/2705 (N.I. 15), art. 40(2), Sch. 3; S.R. 1996/401, art. 2

F129Words in s. 21(2) substituted (3.11.2000 for specified purposes and 6.4.2001 otherwise) by S.I. 1999/3147 (N.I. 11), art. 67, Sch. 8 para. 20(b); S.R. 2000/332, art. 2(3)(e)(4)(5)

F130Entry in s. 21(2) repealed (12.1.2000 and 2.4.2000 for specified purposes and otherwise prosp.) by S.I. 1999/3147 (N.I. 11), arts. 67, 76, Sch. 8 Pt. VI para. 29(3), Sch. 10 Pt. V; S.R. 1999/494, art. 2(1)(b)(c)(i)

F131Words in s. 21(2) substituted (24.4.2000 for specified purposes and 9.4.2001 otherwise) by S.I. 1999/3147 (N.I. 11), art. 67, Sch. 8 para. 3(2)(a); S.R. 2000/133, art. 2(3)(a), Sch. Pt. I

F132Entries in s. 21(2) inserted (24.4.2000 for specified purposes and 9.4.2001 otherwise) by S.I. 1999/3147 (N.I. 11), art. 67, Sch. 8 para. 3(2)(b); S.R. 2000/133, art. 2(3)(a), Sch. Pt. I

F133Words in s. 21(4) repealed (12.1.2000 and 2.4.2000 for specified purposes and otherwise prosp.) by S.I. 1999/3147 (N.I. 11), arts. 67, 76, Sch. 8 Pt. VI para. 29(4), Sch. 10 Pt. V; S.R. 1999/494, art. 2(1)(b)(c)(i)

F134Words in s. 21(4) substituted (24.4.2000 for specified purposes and 9.4.2001 otherwise) by S.I. 1999/3147 (N.I. 11), art. 67, Sch. 8 para. 3(3); S.R. 2000/133, art. 2(3)(a), Sch. Pt. I

F135Words in s. 21(5)(c)(i) substituted (with effect for 2003-04 and subsequent tax years) by National Insurance Contributions Act 2002 (c. 19), ss. 6, 8(2), Sch. 1 para. 25

F137Words in s. 21(5A)(b) inserted (8.1.2001, 1.2.2001 for specified purposes and 6.4.2002 otherwise) by 2000 c. 4 (N.I.), s. 33(2)(a); S.R. 2000/358, art. 2(e), Sch. Pt. IV (as amended by S.R. 2000/374, art. 3); S.R. 2001/34, art. 2(a)

F138Words in s. 21(5A)(b) substituted (8.1.2001, 1.2.2001 for specified purposes and 6.4.2002 otherwise) by 2000 c. 4 (N.I.), s. 33(2)(b); S.R. 2000/358, art. 2(e), Sch. Pt. IV (as amended by S.R. 2000/374, art. 3); S.R. 2001/34, art. 2(a)

22 Earnings factors.N.I.

(1)A person shall, for the purposes specified in subsection (2) below, be treated as having annual earnings factors derived—

(a)in the case of 1987-88 or any subsequent tax year, from [F140so much of his earnings as did not exceed the upper earnings limit and] upon which primary Class 1 contributions have been paid or treated as paid and from Class 2 and Class 3 contributions; and

(b)in the case of any earlier tax year, from his contributions of any of Classes 1, 2 and 3;

but subject to the following provisions of this section and those of section 23 below.

(2)The purposes referred to in subsection (1) above are those of—

(a)establishing, by reference to the satisfaction of contribution conditions, entitlement to [F141a contribution-based jobseeker’s allowance or to]any benefit specified in section 20(1) above, other than maternity allowance; and

(b)calculating the additional pension in the rate of a long-term benefit.

[F142(2A)For the purpose specified in subsection (2)(b) above, in the case of the first appointed year or any subsequent tax year a person’s earnings factor shall be treated as derived only from [F140so much of his earnings as did not exceed the upper earnings limit and] on which primary Class 1 contributions have been paid or treated as paid.]

(3)Separate earnings factors may be derived for 1987-88 and subsequent tax years—

(a)from earnings [F143not exceeding the upper earnings limit] upon which primary Class 1 contributions have been paid or treated as paid;

(b)from earnings which have been credited;

(c)from contributions of different classes paid or credited in the same tax year;

(d)by any combination of the methods mentioned in paragraphs (a) to (c) above,

and may be derived for any earlier tax year from contributions of different classes paid or credited in the same tax year, and from contributions which have actually been paid, as opposed to those not paid but credited.

(4)Subject to regulations under section 19(4) to (6) above, no earnings factor shall be derived—

(a)for 1987-88 or any subsequent tax year, from earnings [F144in respect of which] primary Class 1 contributions are paid at the reduced rate, or

(b)for any earlier tax year, from primary Class 1 contributions paid at the reduced rate or from secondary Class 1 contributions.

(5)Regulations may provide for crediting—

(a)for 1987-88 or any subsequent tax year, earnings or Class 2 or Class 3 contributions, or

(b)for any earlier tax year, contributions of any class,

for the purpose of bringing a person’s earnings factor for that tax year to a figure which will enable him to satisfy contribution conditions of entitlement to [F141a contribution-based jobseeker’s allowance or to]any prescribed description of benefit (whether his own entitlement or another person’s).

(6)Regulations may impose limits with respect to the earnings factors which a person may have or be treated as having in respect of any one tax year.

(7)The M4power to amend regulations made before 30th March 1977 (the making of the Social Security (Miscellaneous Provisions) (Northern Ireland) Order 1977) under subsection (5) above may be so exercised as to restrict the circumstances in which and the purposes for which a person is entitled to credits in respect of weeks before the coming into force of the amending regulations; but not so as to affect any benefit for a period before the coming into force of the amending regulations if it was claimed before 18th March 1977.

Textual Amendments

F140Words in s. 22(1)(a)(2A) substituted (with effect for 2003-04 and subsequent tax years) by National Insurance Contributions Act 2002 (c. 19), ss. 6, 8(2), Sch. 1 para. 26(2)

F142S. 22(2A) inserted (8.1.2001, 1.2.2001 for specified purposes and 6.4.2002 otherwise) by 2000 c. 4 (N.I.), s. 29(1); S.R. 2000/358, art. 2(e), Sch. Pt. IV (as amended by S.R. 2000/374, art. 3); S.R. 2001/34, art. 2(a)

F143Words in s. 22(3)(a) inserted (with effect for 2003-04 and subsequent tax years) by National Insurance Contributions Act 2002 (c. 19), ss. 6, 8(2), Sch. 1 para. 26(3)

Modifications etc. (not altering text)

C18S. 22 applied (7.2.1994) by 1993 c. 49, s. 176(1); S.R. 1994/17, art. 2

Marginal Citations

23 Provisions supplemental to ss. 21 and 22.N.I.

(1)Earnings factors derived as mentioned in section [F14522(1)] above, including earnings factors as increased by any order under section 130 of the Administration Act—

(a)shall be expressed, subject to subsection (2) below, as whole numbers of pounds; and

(b)shall be made ascertainable from tables or rules to be drawn up by the Department and embodied in regulations.

(2)Subsection (1) above does not require earnings factors in respect of the tax year 1978-79 or any subsequent tax year which have been revalued for the purpose of calculating guaranteed minimum pensions under the Pensions Order [F146or the Pensions Act] to be expressed as whole numbers of pounds.

(3)The tables and rules referred to in subsection (1) above shall be drawn up so that, in general—

(a)in respect of the tax year 1987-88 and any subsequent tax year, the amount of earnings [F147not exceeding the upper earnings limit] upon which primary Class 1 contributions have been paid or treated as paid gives rise, subject to subsection (4) below, to an earnings factor for that year equal or approximating to the amount of those earnings; and

(b)any number of Class 2 or Class 3 contributions in respect of a tax year gives rise to an earnings factor for that tax year equal or approximating to that year’s lower earnings limit for Class 1 contributions multiplied by the number of contributions.

(4)The Department may by regulations make such modifications of subsection (3)(a) above as appear to the Department to be appropriate in consequence of section 8(2) above.

Textual Amendments

F145Words in s. 23(1) substituted (16.12.1995 subject to Sch. 2 of the amending S.I.) by S.I. 1995/3213 (N.I. 22), arts. 1(3), 131(2)

F146Words in s. 23(2) inserted (7.2.1994) by 1993 c. 49, s. 184, Sch. 7 para. 31; S.R. 1994/17, art. 2

F147Words in s. 23(3)(a) inserted (with effect for 2003-04 and subsequent tax years) by National Insurance Contributions Act 2002 (c. 19), ss. 6, 8(2), Sch. 1 para. 27

Modifications etc. (not altering text)

C20S. 23 applied (7.2.1994) by 1993 c. 49, s. 176(1); S.R. 1994/17, art. 2

24 Records of earnings and calculation of earnings factors in absence of records.N.I.

(1)Regulations may provide for requiring persons to maintain, in such form and manner as may be prescribed, records of such earnings paid by them as are relevant for the purpose of calculating earnings factors, and to retain such records for so long as may be prescribed.

(2)Where the Department is satisfied that records of earnings relevant for the purpose of calculating a person’s earnings factors for the tax year 1987-88 or any subsequent tax year have not been maintained or retained or are otherwise unobtainable, then, for the purpose of determining those earnings factors, the Department may—

(a)compute, in such manner as it thinks fit, an amount which shall be regarded as the amount of [F148so much of that person’s earnings as did not exceed the upper earnings limit and] on which primary Class 1 contributions have been paid or treated as paid; or

(b)take the amount of those earnings to be such sum as it may specify in the particular case.

Textual Amendments

F148Words in s. 24(2)(a) substituted (with effect for 2003-04 and subsequent tax years) by National Insurance Contributions Act 2002 (c. 19), ss. 6, 8(2), Sch. 1 para. 28

Unemployment benefitN.I.

F14925. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .N.I.

Textual Amendments

F15025A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .N.I.

Textual Amendments

F15125B. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .N.I.

Textual Amendments

F15226. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .N.I.

Textual Amendments

F15327. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .N.I.

Textual Amendments

F15428. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .N.I.

Textual Amendments

F15529. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .N.I.

Textual Amendments

F15630. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .N.I.

Textual Amendments

[F157Incapacity benefit]N.I.

Textual Amendments

F157S. 30A and preceding cross-heading inserted (13.4.1995) by S.I. 1994/1898 (N.I. 12), art. 3(1); S.R. 1994/450, art. 2(d), Sch. Pt. IV

[F15830A Incapacity benefit: entitlement.N.I.

(1)Subject to the following provisions of this section, a person who satisfies

[F159(a)either of the conditions mentioned in subsection (2) below; or

(b)if he satisfies neither of those conditions, each of the conditions mentioned in subsection (2A) below,]

is entitled to short-term incapacity benefit in respect of any day of incapacity for work [F160(“the relevant day”)] which forms part of a period of incapacity for work.

(2)The conditions [F161mentioned in subsection (1)(a) above] are that—

(a)he is under pensionable age on [F162the relevant day] and satisfies the contribution conditions specified for short-term incapacity benefit in Schedule 3, paragraph 2; or

(b)on that day he is over pensionable age but not more than 5 years over that age, the period of incapacity for work began before he attained pensionable age, and—

(i)he would be entitled to a Category A retirement pension if his entitlement had not been deferred or if he had not made an election under section 54(1) below; or

(ii)he would be entitled to a Category B retirement pension by virtue of the contributions of his deceased spouse, but for any such deferment or election.

[F163(2A)The conditions mentioned in subsection (1)(b) above are that—

(a)he is aged 16 or over on the relevant day;

(b)he is under the age of 20 or, in prescribed cases, 25 on a day which forms part of the period of incapacity for work;

(c)he was incapable of work throughout a period of 196 consecutive days immediately preceding the relevant day, or an earlier day in the period of incapacity for work on which he was aged 16 or over;

(d)on the relevant day he satisfies the prescribed conditions as to residence in Northern Ireland, or as to presence there; and

(e)he is not, on that day, a person who is receiving full-time education.]

(3)A person is not entitled to short-term incapacity benefit [F164under subsection (1)(a) above] for the first 3 days of any period of incapacity for work.

(4)In any period of incapacity for work a person is not entitled to short-term incapacity benefit for more than 364 days.

(5)Where a person ceases by virtue of subsection (4) above to be entitled to short-term incapacity benefit, he is entitled to long-term incapacity benefit in respect of any subsequent day of incapacity for work in the same period of incapacity for work on which he is not over pensionable age.

[F165(6)Regulations may provide that persons who have previously been entitled to incapacity benefit shall, in prescribed circumstances, be entitled to short-term incapacity benefit under subsection (1)(b) above notwithstanding that they do not satisfy the condition set out in paragraph (b) of subsection (2A) above.

(7)Regulations may prescribe the circumstances in which a person is or is not to be treated as receiving full-time education for the purposes of paragraph (e) of subsection (2A) above.]]

Textual Amendments

F158S. 30A and preceding cross-heading inserted (13.4.1995) by S.I. 1994/1898 (N.I. 12), art. 3(1); S.R. 1994/450, art. 2(d), Sch. Pt. IV

F159Words in s. 30A(1) substituted (3.11.2000 for specified purposes and 6.4.2001 otherwise) by S.I. 1999/3147 (N.I. 11), art. 61(1)(a); S.R. 2000/332, art. 2(3)(c)(4)(5)

F160Words in s. 30A(1) inserted (3.11.2000 for specified purposes and 6.4.2001 otherwise) by S.I. 1999/3147 (N.I. 11), art. 61(1)(b); S.R. 2000/332, art. 2(3)(c)(4)(5)

F161Words in s. 30A(2) inserted (3.11.2000 for specified purposes and 6.4.2001 otherwise) by S.I. 1999/3147 (N.I. 11), art. 61(2)(a); S.R. 2000/332, art. 2(3)(c)(4)(5)

F162Words in s. 30A(2)(a) substituted (3.11.2000 for specified purposes and 6.4.2001 otherwise) by S.I. 1999/3147 (N.I. 11), art. 61(2)(b); S.R. 2000/332, art. 2(3)(c)(4)(5)

F163S. 30A(2A) inserted (3.11.2000 for specified purposes and 6.4.2001 otherwise) by S.I. 1999/3147 (N.I. 11), art. 61(3); S.R. 2000/332, art. 2(3)(c)(4)(5)

F164Words in s. 30A(3) inserted (3.11.2000 for specified purposes and 6.4.2001 otherwise) by S.I. 1999/3147 (N.I. 11), art. 61(4); S.R. 2000/332, art. 2(3)(c)(4)(5)

F165S. 30A(6)(7) added (3.11.2000 for specified purposes and 6.4.2001 otherwise) by S.I. 1999/3147 (N.I. 11), art. 61(5); S.R. 2000/332, art. 2(3)(c)(4)(5)

Modifications etc. (not altering text)

C22S. 30A(4) modified (13.4.1995) by S.R. 1995/35, reg. 4

[F16630B Incapacity benefit: rate.N.I.

(1)The amount payable by way of incapacity benefit in respect of any day is 1/7th of the appropriate weekly rate.

(2)Subject to the following provisions of this section the weekly rate of short-term incapacity benefit is the lower or higher rate specified in Schedule 4, Part I, paragraph 2.

The benefit is payable at the lower rate so specified for the first 196 days of entitlement in any period of incapacity for work and at the higher rate so specified thereafter.

(3)In the case of a person over pensionable age the weekly rate of short-term incapacity benefit is, subject to subsection (4) below, that at which the relevant retirement pension referred to in section 30A(2)(b) above would have been payable.

But in determining that rate any increase of the following descriptions shall be disregarded—

(a)

any increase [F167(for married people) under section 51A(2)] below or (for deferred retirement) under Schedule 5 to this Act;

(b)

any increase (for dependants) under section F168... 83 or 85 below; and

(c)

any increase (for Category A or Category B pensioners) under section 132 of the Administration Act (annual up-rating of benefits) which corresponds to an increase of the sums mentioned in section 150(1)(e) of the Great Britain Administration Act.

(4)In the case of a person who has been entitled to short-term incapacity benefit for 196 days or more in any period of incapacity for work and—

(a)is terminally ill; or

(b)is entitled to the highest rate of the care component of disability living allowance,

the weekly rate of short-term incapacity benefit payable, if greater than the rate otherwise payable to him under subsection (2) or (3) above, shall be equal to the rate at which long-term incapacity benefit under section 30A above would be payable to him if he were entitled to it.

For the purposes of this subsection a person is terminally ill if he suffers from a progressive disease and his death in consequence of that disease can reasonably be expected within 6 months.

(5)References to short-term incapacity benefit at the higher rate shall be construed as including short-term incapacity benefit payable to any person who has been entitled to that benefit for 196 days or more in a period of incapacity for work, notwithstanding that the rate of benefit is determined in accordance with subsection (3) or (4) above.

(6)Subject as follows, the weekly rate of long-term incapacity benefit under section 30A above is that specified in Schedule 4, Part I, paragraph 2A.

(7)Regulations may provide that if a person is, on the qualifying date in relation to a period of incapacity for work, under such age as may be prescribed, the rate of long-term incapacity benefit under section 30A above payable to him in respect of any day in that period shall be increased by such amount as may be prescribed.

For this purpose “the qualifying date” means the first day of the period of incapacity for work or such earlier day as may be prescribed.]

Textual Amendments

F166S. 30B inserted (21.11.1994 for the purpose of making regulations and 13.4.1995 otherwise) by S.I. 1994/1898 (N.I. 12), art. 4(1); S.R. 1994/450, art. 2(b), Sch. Pt. II

F167Words in s. 30B(3)(a) substituted (16.12.1995 subject to Sch. 2 of the amending S.I.) by S.I. 1995/3213 (N.I. 22), arts. 1(3), 123, Sch. 2 Pt. II para. 18(3)

Modifications etc. (not altering text)

C23S. 30B modified (13.4.1995) by S.R. 1995/35, regs. 12, 13(1)(2), 14, 19, 20

C24S. 30B(2)(4) modified (13.4.1995) by S.R. 1995/35, reg. 4

C25S. 30B(5) applied (1.5.1995) by 1994 c. 9, s. 139(6) (as inserted by 1995 c. 4, s. 141(3))

[F16930C Incapacity benefit: days and periods of incapacity for work.N.I.

(1)For the purposes of any provisions of this Act relating to incapacity benefit, subject to the following provisions and save as otherwise expressly provided—

(a)a day of incapacity for work means a day on which a person is incapable of work;

(b)a period of incapacity for work means a period of 4 or more consecutive days, each of which is a day of incapacity for work; and

(c)any two such periods not separated by a period of more than 8 weeks shall be treated as one period of incapacity for work.

(2)Any day which falls within the maternity allowance period (as defined in section 35(2) below) shall be treated for the purposes of any provision of this Act relating to incapacity benefit as a day of incapacity for work unless the woman is disqualified for receiving a maternity allowance for that day by virtue of regulations under section 35(3)(a) below.

(3)Regulations may make provision (subject to the preceding provisions of this section) as to the days which are or are not to be treated as days of incapacity for work for the purposes of any provision of this Act relating to incapacity benefit.

(4)Regulations may provide—

(a)that paragraph (b) of subsection (1) above shall have effect as if the reference there to 4 consecutive days were to such lesser number of days, whether consecutive or not, within such period of consecutive days as may be specified in the regulations; and

(b)that paragraph (c) of that subsection shall have effect as if for the reference to 8 weeks there were substituted a reference to such larger number of weeks as may be specified in the regulations.

[F170(5)Where a person claims the higher rate of short-term incapacity benefit, or long-term incapacity benefit, under section 30A above for a period commencing after he has ceased to be in qualifying remunerative work (within the meaning of Part 1 of the Tax Credits Act 2002) and—

(a)the day following that on which he so ceased was a day of incapacity for work for him,

(b)he has been entitled to the higher rate of short-term incapacity benefit, or to long-term incapacity benefit, under section 30A above within the period of two years ending with that day of incapacity for work, and

(c)he satisfied the relevant tax credit conditions on the day before he so ceased,

every day during that period on which he satisfied those conditions is to be treated for the purposes of the claim as a day of incapacity for work for him.

(5A)A person satisfies the relevant tax credit conditions on a day if—

(a)he is entitled for the day to the disability element of working tax credit (on a claim made by him or by him jointly with another) or would be so entitled but for the fact that the relevant income (within the meaning of Part 1 of the Tax Credits Act 2002) in his or their case is such that he is not so entitled, and

(b)either working tax credit or any element of child tax credit other than the family element is paid in respect of the day on such a claim.]

(6)Where—

(a)a person becomes engaged in training for work; and

(b)he was entitled to the higher rate of short-term incapacity benefit, or to long-term incapacity benefit under section 30A above, for one or more of the 56 days immediately before he became so engaged; and

(c)the first day after he ceases to be so engaged is for him a day of incapacity for work and falls not later than the end of the period of two years beginning with the last day for which he was entitled to such benefit,

any day since that day in which he was engaged in training for work shall be treated for the purposes of any claim for such benefit for a period commencing after he ceases to be so engaged as having been a day of incapacity for work.

In this subsection “training for work” means training for work in pursuance of arrangements made under section 1(1) of the Employment and Training Act (Northern Ireland) 1950 or training of such other description as may be prescribed.

(7)For the purposes of this section “week” means any period of 7 days.]

Textual Amendments

F169Ss. 30C-30E inserted (21.11.1994 for the purpose of making regulations and 13.4.1995 otherwise) by S.I. 1994/1898 (N.I. 12), art. 5(1); S.R. 1994/450, art. 2(b), Sch. Pt. II

Modifications etc. (not altering text)

C27S. 30C modified (1.7.1998) by S.I. 1998/1506 (N.I. 10), arts. 1(3), 73(8)(b)

[F17130D Incapacity benefit: construction of references to days of entitlement.N.I.

(1)The following provisions have effect in calculating for the purposes of—

(a)section 30A(4) above (length of entitlement to short-term incapacity benefit);

(b)section 30B(2) above (period after which short-term incapacity benefit is payable at higher rate);

(c)section 30B(4) above (period after which incapacity benefit is payable at long-term rate in case of terminal illness); and

(d)section 30B(5) above (construction of references to short-term incapacity benefit at the higher rate),

the number of days for which a person has been entitled to short-term incapacity benefit.

(2)There shall be included—

(a)the first 3 days of the period of incapacity for work; and

(b)in the case of a woman, any days for which she was entitled to maternity allowance.

(3)There shall also be included such days as may be prescribed in respect of which a person was entitled to statutory sick pay, and on the first of which he satisfied the contribution conditions for short-term incapacity benefit.

(4)There shall be excluded any days in respect of which a person was disqualified for receiving incapacity benefit.]

Textual Amendments

F171Ss. 30C-30E inserted (21.11.1994 for the purpose of making regulations and 13.4.1995 otherwise) by S.I. 1994/1898 (N.I. 12), art. 5(1); S.R. 1994/450, art. 2(b), Sch. Pt. II

Modifications etc. (not altering text)

[F17230DD Incapacity benefit: reduction for pension payments.N.I.

(1)Where—

(a)a person is entitled to incapacity benefit in respect of any period of a week or part of a week,

(b)a pension payment is payable to him in respect of that period (or a period which forms part of that period or includes that period or part of it), and

(c)the amount of that payment (or, as the case may be, the amount which in accordance with regulations is to be taken as payable to him by way of pension payments in respect of that period) exceeds the threshold,

the amount of that benefit shall be reduced by an amount equal to 50 per cent. of that excess.

(2)In subsection (1) above “the threshold” means—

(a)if the period in question is a week, £85 or such greater amount as may be prescribed; or

(b)if that period is not a week, such proportion of the amount mentioned in paragraph (a) as falls to be calculated in accordance with regulations on such basis as may be prescribed.

(3)Regulations may secure that a person of any prescribed description does not suffer any reduction under subsection (1) above in any amount of incapacity benefit to which he is entitled.

(4)Regulations may provide—

(a)for sums of any specified description to be disregarded for the purposes of this section;

(b)for sums of any specified description to be treated for those purposes as payable to persons as pension payments (including, in particular sums in relation to which there is a deferred right of receipt);

(c)for the aggregation of sums of any specified description which are payable as pension payments (or treated as being so payable) in respect of the same or different periods;

(d)for such sums or aggregate sums to be apportioned between or otherwise allocated to periods in respect of which persons are entitled to incapacity benefit.

(5)In this section “pension payment” means—

(a)a periodical payment made in relation to a person under a personal pension scheme or, in connection with the coming to an end of an employment of his, under an occupational pension scheme or a public service pension scheme;

(b)a payment of any specified description, being a payment made under an insurance policy providing benefits in connection with physical or mental illness, disability, infirmity or defect; or

(c)a payment of any other specified description;

and “specified” means prescribed by or determined in accordance with regulations under this section.

(6)For the purposes of subsection (5) above

  • “occupational pension scheme”, “personal pension scheme” and “public service pension scheme” each has the meaning given by section 1 of the M5Pension Schemes (Northern Ireland) Act 1993, except that

  • “personal pension scheme” includes a contract or trust scheme approved under Chapter III of Part XIV of the M6Income and Corporation Taxes Act 1988 (retirement annuities).]

Textual Amendments

F172S. 30DD inserted (3.11.2000 for specified purposes and 6.4.2001 otherwise) by S.I. 1999/3147 (N.I. 11), art. 60; S.R. 2000/332, art. 2(3)(b)(4)(5)

Marginal Citations

[F17330E Incapacity benefit: reduction for councillor’s allowance.N.I.

(1)Where the net amount of councillor’s allowance to which a person is entitled in respect of any week exceeds such amount as may be prescribed, an amount equal to the excess shall be deducted from the amount of any incapacity benefit to which he is entitled in respect of that week, and only the balance remaining (if any) shall be payable.

(2)In this section “councillor’s allowance” means such payments for or in connection with the work which a person undertakes as a member of a district council as may be prescribed for the purposes of this section; and where any such payments are made otherwise than weekly, an amount calculated or estimated in accordance with regulations shall be regarded as the weekly amount of the payments.

(3)In subsection (1) above “net amount”, in relation to any councillor’s allowance to which a person is entitled, means the aggregate amount of the councillor’s allowance or allowances to which he is entitled for the week in question, reduced by the amount of any expenses incurred by him in that week in connection with his membership of the council or councils in question.]

Textual Amendments

F173Ss. 30C-30E inserted (21.11.1994 for the purpose of making regulations and 13.4.1995 otherwise) by S.I. 1994/1898 (N.I. 12), art. 5(1); S.R. 1994/450, art. 2(b), Sch. Pt. II

Sickness benefitN.I.

F17431. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .N.I.

F17532. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .N.I.

Invalidity benefitsN.I.

F17633. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .N.I.

F17734. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .N.I.

MaternityN.I.

35 State maternity allowance.N.I.

[F178(1)A woman shall be entitled to a maternity allowance, at the appropriate weekly rate determined under section 35A below, if—

(a)she has become pregnant and has reached, or been confined before reaching, the commencement of the 11th week before the expected week of confinement; and

(b)she has been engaged in employment as an employed or self-employed earner for any part of the week in the case of at least 26 of the 66 weeks immediately preceding the expected week of confinement; and

[F179(c)her average weekly earnings (within the meaning of section 35A below) are not less than the maternity allowance threshold for the tax year in which the beginning of the period of 66 weeks mentioned in paragraph (b) above falls;]

(d)she is not entitled to statutory maternity pay for the same week in respect of the same pregnancy.]

(2)Subject to the following provisions of this section, a maternity allowance shall be payable for the period (“the maternity allowance period”) which, if she were entitled to statutory maternity pay, would be the maternity pay period under section 161 below.

(3)Regulations may provide—

(a)for disqualifying a woman for receiving a maternity allowance if—

(i)during the maternity allowance period she does any work in employment as an employed or self-employed earner, or fails without good cause to observe any prescribed rules of behaviour; or

(ii)at any time before she is confined she fails without good cause to attend for, or submit herself to, any medical examination required in accordance with the regulations;

(b)that this section and [F180section 35A below] shall have effect subject to prescribed modifications in relation to cases in which a woman has been confined and—

(i)has not made a claim for a maternity allowance in expectation of that confinement (other than a claim which has been disallowed); or

(ii)has made a claim for a maternity allowance in expectation of that confinement (other than a claim which has been disallowed), but she was confined more than 11 weeks before the expected week of confinement.

[F181(c)that subsection (2) above shall have effect subject to prescribed modifications in relation to cases in which a woman fails to satisfy the conditions referred to in subsection (1)(b) [F182or (c) above] at the commencement of the 11th week before the expected week of confinement, but subsequently satisfies those conditions at any time before she is confined.]

(4)A woman who has become entitled to a maternity allowance shall cease to be entitled to it if she dies before the beginning of the maternity allowance period; and if she dies after the beginning, but before the end, of that period, the allowance shall not be payable for any week subsequent to that in which she dies.

(5)Where for any purpose of this Part of this Act or of regulations it is necessary to calculate the daily rate of a maternity allowance—

(a)Sunday or such other day in each week as may be prescribed shall be disregarded; and

(b)the amount payable by way of that allowance for any other day shall be taken as one sixth of the weekly rate of the allowance.

(6)In this section “confinement” means—

(a)labour resulting in the issue of a living child, or

(b)labour after [F18324 weeks] of pregnancy resulting in the issue of a child whether alive or dead,

and “confined” shall be construed accordingly; and where a woman’s labour begun on one day results in the issue of a child on another day she shall be taken to be confined on the day of the issue of the child or, if labour results in the issue of twins or a greater number of children, she shall be taken to be confined on the day of the issue of the last of them.

[F184(6A)In this section “the maternity allowance threshold”, in relation to a tax year, means (subject to subsection (6B) below) £30.

(6B)Whenever the Secretary of State makes an order under section 35(6B) of the Great Britain Contributions and Benefits Act (increase of maternity allowance threshold), the Department may make a corresponding order for Northern Ireland.]

(7)The fact that the mother of a child is being paid maternity allowance shall not be taken into consideration by any court in deciding whether to order payment of expenses incidental to the birth of the child.

Textual Amendments

F178S. 35(1) substituted for s. 35(1)(1A) (12.1.2000 for specified purposes and 2.4.2000 otherwise) by S.I. 1999/3147 (N.I. 11), art. 50(1); S.R. 1999/494, art. 2(1)(a)

F180Words in s. 35(3)(b) substituted (12.1.2000 for specified purposes and 2.4.2000 otherwise) by S.I. 1999/3147 (N.I. 11), art. 50(2)(a); S.R. 1999/494, art. 2(1)(a)

F181S. 35(3)(c) added (in accordance with reg. 1(2)(3) of the amending S.R.) by S.R. 1994/176, reg. 2(3)

F183Words in s. 35(6) substituted (1.10.1992) by S.I. 1992/1310, art. 4(a).

[F18535A Appropriate weekly rate of maternity allowance.N.I.

[F186(1)For the purposes of section 35(1) above the appropriate weekly rate is (subject to subsection (5A) below) whichever is the lower rate of—

(a)a weekly rate equivalent to 90 per cent. of the woman's average weekly earnings; and

(b)the weekly rate for the time being prescribed under section 162(1)(b) below.

(2)

(3)]

(4)For the purposes of this section a woman’s

“average weekly earnings” shall be taken to be the average weekly amount (as determined in accordance with regulations) of specified payments which—

(a)

were made to her or for her benefit as an employed earner, or

(b)

are (in accordance with regulations) to be treated as made to her or for her benefit as a self-employed earner,

during the specified period.

(5)Regulations may, for the purposes of subsection (4) above, provide—

(a)for the amount of any payments falling within paragraph (a) or (b) of that subsection to be calculated or estimated in such manner and on such basis as may be prescribed;

(b)for a payment made outside the specified period to be treated as made during that period where it was referable to that period or any part of it;

(c)for a woman engaged in employment as a self-employed earner to be treated as having received a payment in respect of a week—

(i)equal to [F187an amount 90 per cent. of which is equal to the weekly rate prescribed under section 162(1)(b) below that is] in force on the last day of the week, if she paid a Class 2 contribution in respect of the week, or

(ii)equal to the maternity allowance threshold in force on that day, if she was excepted (under section 11(4) above) from liability for such a contribution in respect of the week;

(d)for aggregating payments made or treated as made to or for the benefit of a woman where, either in the same week or in different weeks, she was engaged in two or more employments (whether, in each case, as an employed earner or a self-employed earner).

[F188(5A)Where subsection (5B) below applies the appropriate weekly rate is the weekly rate for the time being prescribed under section 162(1)(b) below.

(5B)This subsection applies where a woman is treated by virtue of regulations under sub-paragraph (i) of paragraph (c) of subsection (5) above as having received a payment in respect of each week in the specified period equal to the amount mentioned in that sub-paragraph.]

[F189(6)In this section—

  • “the maternity allowance threshold” has the same meaning as in section 35 above;

  • “specified” means prescribed by or determined in accordance with regulations.

(7)]]

Textual Amendments

F185S. 35A inserted (12.1.2000 for specified purposes and 2.4.2000 otherwise) by S.I. 1999/3147 (N.I. 11), art. 50(3); S.R. 1999/494, art. 2(1)(a)

F187Words in s. 35A(5)(c)(i) substituted (19.11.2002 for certain purposes and 24.11.2002 otherwise) by Social Security Act (Northern Ireland) 2002 (c. 10 (N.I.)), ss. 4(1)(b), 9; S.R. 2002/351, art. 2(b), Sch. Pt. II; S.R. 2002/358, art. 2(b), Sch. Pt. I (with art. 3(1))

Modifications etc. (not altering text)

C29S. 35A(5)(c)(i) modified (19.11.2002 for certain purposes and 24.11.2002 otherwise) by Social Security Act (Northern Ireland) 2002 (c. 10 (N.I.)), ss. 4(2), 9; S.R. 2002/351, art. 2(b), Sch. Pt. II; S.R. 2002/358, art. 2(b), Sch. Pt. I (with art. 3(1))

Benefits for widows and widowersN.I.

[F19036 Bereavement payment.N.I.

(1)A person whose spouse dies on or after the appointed day shall be entitled to a bereavement payment if—

(a)either that person was under pensionable age at the time when the spouse died or the spouse was then not entitled to a Category A retirement pension under section 44 below; and

(b)the spouse satisfied the contribution condition for a bereavement payment specified in Schedule 3, Part I, paragraph 4.

(2)A bereavement payment shall not be payable to a person if that person and a person of the opposite sex to whom that person was not married were living together as husband and wife at the time of the spouse’s death.

(3)In this section “the appointed day” means the day appointed for the coming into operation of Articles 51 to 53 of the Welfare Reform and Pensions (Northern Ireland) Order 1999.]

Textual Amendments

F190S. 36 substituted (24.4.2000 for specified purposes and 9.4.2001 otherwise) by S.I. 1999/3147 (N.I. 11), art. 51(1); S.R. 2000/133, art. 2(3)(a), Sch. Pt. I

[F19136A Cases in which sections 37 to 41 apply.N.I.

(1)Sections 37 to 39 and section 40 below apply only in cases where a woman’s husband has died before the appointed day, and section 41 below applies only in cases where a man’s wife has died before that day.

(2)Sections 39A to 39C below apply in cases where a person’s spouse dies on or after the appointed day, but section 39A also applies (in accordance with subsection (1)(b) of that section) in cases where a man’s wife has died before that day.

(3)In this section, and in sections 39A and 39B below, “the appointed day” means the day appointed for the coming into operation of Articles 51 to 53 of the Welfare Reform and Pensions (Northern Ireland) Order 1999.]

Textual Amendments

F191S. 36A inserted (24.4.2000 for specified purposes and 9.4.2001 otherwise) by S.I. 1999/3147 (N.I. 11), art. 52(1); S.R. 2000/133, art. 2(3)(a), Sch. Pt. I

37 Widowed mother’s allowance.N.I.

(1)A woman who has been widowed shall be entitled to a widowed mother’s allowance at the rate determined in accordance with section 39 below if her late husband satisfied the contribution conditions for a widowed mother’s allowance specified in Schedule 3, Part I, paragraph 5 and either—

(a)the woman is entitled to child benefit in respect of a child falling within subsection (2) below;

(b)the woman is pregnant by her late husband; or

(c)if the woman and her late husband were residing together immediately before the time of his death, the woman is pregnant as the result of being artificially inseminated before that time with the semen of some person other than her husband, or as the result of the placing in her before that time of an embryo, of an egg in the process of fertilisation, or of sperm and eggs.

(2)A child falls within this subsection if one of the conditions specified in section [F19277(5)] below is for the time being satisfied with respect to the child and the child is either—

(a)a son or daughter of the woman and her late husband;

(b)a child in respect of whom her late husband was immediately before his death entitled to child benefit; or

(c)if the woman and her late husband were residing together immediately before his death, a child in respect of whom she was then entitled to child benefit.

(3)The widow shall not be entitled to the allowance for any period after she remarries, but, subject to that, she shall continue to be entitled to it for any period throughout which she satisfies the requirements of subsection (1)(a), (b) or (c) above.

(4)A widowed mother’s allowance shall not be payable—

(a)for any period falling before the day on which the widow’s entitlement is to be regarded as commencing for that purpose by virtue of section 5(1)(l) of the Administration Act; or

(b)for any period during which she and a man to whom she is not married are living together as husband and wife.

Textual Amendments

38 Widow’s pension.N.I.

(1)A woman who has been widowed shall be entitled to a widow’s pension at the rate determined in accordance with section 39 below if her late husband satisfied the contribution conditions for a widow’s pension specified in Schedule 3, Part I, paragraph 5 and either—

(a)she was, at the husband’s death, over the age of 45 but under the age of 65; or

(b)she ceased to be entitled to a widowed mother’s allowance at a time when she was over the age of 45 but under the age of 65.

(2)The widow shall not be entitled to the pension for any period after she remarries, but, subject to that, she shall continue to be entitled to it until she attains the age of 65.

(3)A widow’s pension shall not be payable—

(a)for any period falling before the day on which the widow’s entitlement is to be regarded as commencing for that purpose by virtue of section 5(1)(l) of the Administration Act;

(b)for any period for which she is entitled to a widowed mother’s allowance; or

(c)for any period during which she and a man to whom she is not married are living together as husband and wife.

(4)In the case of a widow whose late husband died before 11th April 1988 and who either—

(a)was over the age of 40 but under the age of 55 at the time of her husband’s death; or

(b)is over the age of 40 but under the age of 55 at the time when she ceases to be entitled to a widowed mother’s allowance,

subsection (1) above shall have effect as if for “45” there were substituted “ 40 ”.

39 Rate of widowed mother’s allowance and widow’s pension.N.I.

(1)The weekly rate of—

(a)a widowed mother’s allowance,

(b)a widow’s pension,

shall be determined in accordance with the provisions of [F193[F194sections 44 to] [F19545B]] below [F196and Schedule 4A to this Act] as they apply in the case of a Category A retirement pension, but subject, in particular, to the following provisions of this section and section 46(2) below.

(2)In the application of [F193[F194sections 44 to] [F19545B]] below [F196and Schedule 4A to this Act] by virtue of subsection (1) above—

(a)where the woman’s husband was over pensionable age when he died, references in those sections to the pensioner shall be taken as references to the husband, and

(b)where the husband was under pensionable age when he died, references in those sections to the pensioner and the tax year in which he attained pensionable age shall be taken as references to the husband and the tax year in which he died.

(3)In the case of a woman whose husband dies after [F1975th October 2002], the additional pension falling to be calculated under [F193[F194sections 44 to] [F19545B]] below [F196and Schedule 4A to this Act] by virtue of subsection (1) above shall (before making any reduction required by subsection (4) below) be one half of the amount which it would be apart from this subsection.

(4)Where a widow’s pension is payable to a woman who was under the age of 55 at the time when the applicable qualifying condition was fulfilled, the weekly rate of the pension shall be reduced by 7 per cent. of what it would be apart from this subsection multiplied by the number of years by which her age at that time was less than 55 (any fraction of a year being counted as a year).

(5)For the purposes of subsection (4) above, the time when the applicable qualifying condition was fulfilled is the time when the woman’s late husband died or, as the case may be, the time when she ceased to be entitled to a widowed mother’s allowance.

(6)In the case of a widow whose late husband died before 11th April 1988 and who either—

(a)was over the age of 40 but under the age of 55 at the time of her husband’s death; or

(b)is over the age of 40 but under the age of 55 at the time when she ceases to be entitled to a widowed mother’s allowance,

subsection (4) above shall have effect as if for “55” there were substituted “ 50 ”.

Textual Amendments

F193Words in s. 39(1)(2)(3) substituted (16.12.1995 subject to Sch. 2 of the amending S.I.) by S.I. 1995/3213 (N.I. 22), arts. 1(3), 124(2)-(5)

F195Words in s. 39(1)(2)(3) substituted (1.12.2000) by S.I. 1999/3147 (N.I. 11), art. 74, Sch. 9 para. 7; S.R. 2000/133, art. 2(3), Sch. Pt. IV

F196Words in s. 39(1)(2)(3) inserted (8.1.2001, 1.2.2001 for specified purposes and 6.4.2002 otherwise) by 2000 c. 4 (N.I.), s. 33(3); S.R. 2000/358, art. 2(e), Sch. Pt. IV (as amended by S.R. 2000/374, art. 3); S.R. 2001/34, art. 2(a)

F197Words in s. 39(3) substituted (retrospectively) by virtue of 2000 c. 4 (N.I.), s. 35(1)(a)(2)(a)

[F19839A Widowed parent’s allowance.N.I.

(1)This section applies where—

(a)a person whose spouse dies on or after the appointed day is under pensionable age at the time of the spouse’s death, or

(b)a man whose wife died before the appointed day—

(i)has not remarried before that day, and

(ii)is under pensionable age on that day.

(2)The surviving spouse shall be entitled to a widowed parent’s allowance at the rate determined in accordance with section 39C below if the deceased spouse satisfied the contribution conditions for a widowed parent’s allowance specified in Schedule 3, Part I, paragraph 5 and—

(a)the surviving spouse is entitled to child benefit in respect of a child falling within subsection (3) below; or

(b)the surviving spouse is a woman who either—

(i)is pregnant by her late husband, or

(ii)if she and he were residing together immediately before the time of his death, is pregnant in circumstances falling within section 37(1)(c) above.

(3)A child falls within this subsection if one of the conditions specified in section [F19977(5)] below is for the time being satisfied with respect to the child and the child is either—

(a)a son or daughter of the surviving spouse and the deceased spouse; or

(b)a child in respect of whom the deceased spouse was immediately before his or her death entitled to child benefit; or

(c)if the surviving spouse and the deceased spouse were residing together immediately before his or her death, a child in respect of whom the surviving spouse was then entitled to child benefit.

(4)The surviving spouse shall not be entitled to the allowance for any period after she or he remarries, but, subject to that, the surviving spouse shall continue to be entitled to it for any period throughout which she or he—

(a)satisfies the requirements of subsection (2)(a) or (b) above; and

(b)is under pensionable age.

(5)A widowed parent’s allowance shall not be payable—

(a)for any period falling before the day on which the surviving spouse’s entitlement is to be regarded as commencing by virtue of section 5(1)(l) of the Administration Act; or

(b)for any period during which the surviving spouse and a person of the opposite sex to whom she or he is not married are living together as husband and wife.]

Textual Amendments

F198Ss. 39A-39C inserted (24.4.2000 for specified purposes and 9.4.2001 otherwise) by S.I. 1999/3147 (N.I. 11), art. 52(2); S.R. 2000/133, art. 2(3)(a), Sch. Pt. I

[F20039B Bereavement allowance where no dependent children.N.I.

(1)This section applies where a person whose spouse dies on or after the appointed day is over the age of 45 but under pensionable age at the spouse’s death.

(2)The surviving spouse shall be entitled to a bereavement allowance at the rate determined in accordance with section 39C below if the deceased spouse satisfied the contribution conditions for a bereavement allowance specified in Schedule 3, Part I, paragraph 5.

(3)A bereavement allowance shall be payable for not more than 52 weeks beginning with the date of the spouse’s death or (if later) the day on which the surviving spouse’s entitlement is to be regarded as commencing by virtue of section 5(1)(l) of the Administration Act.

(4)The surviving spouse shall not be entitled to the allowance for any period after she or he remarries, but, subject to that, the surviving spouse shall continue to be entitled to it until—

(a)she or he attains pensionable age, or

(b)the period of 52 weeks mentioned in subsection (3) above expires,

whichever happens first.

(5)The allowance shall not be payable—

(a)for any period for which the surviving spouse is entitled to a widowed parent’s allowance; or

(b)for any period during which the surviving spouse and a person of the opposite sex to whom she or he is not married are living together as husband and wife.]

Textual Amendments

F200Ss. 39A-39C inserted (24.4.2000 for specified purposes and 9.4.2001 otherwise) by S.I. 1999/3147 (N.I. 11), art. 52(2); S.R. 2000/133, art. 2(3)(a), Sch. Pt. I

[F20139C Rate of widowed parent’s allowance and bereavement allowance.N.I.

(1)The weekly rate of a widowed parent’s allowance shall be determined in accordance with the provisions of sections 44 to [F20245] below [F203and Schedule 4A to this Act] as they apply in the case of a Category A retirement pension, but subject, in particular, to the following provisions of this section and section 46(2) below.

(2)The weekly rate of a bereavement allowance shall be determined in accordance with the provisions of section 44 below as they apply in the case of a Category A retirement pension so far as consisting only of the basic pension referred to in subsection (3)(a) of that section, but subject, in particular, to the following provisions of this section.

(3)In the application of sections 44 to [F20445] [below and Schedule 4A to this Act] or (as the case may be) section 44 below by virtue of subsection (1) or (2) above—

(a)where the deceased spouse was over pensionable age at his or her death, references in those sections to the pensioner shall be taken as references to the deceased spouse, and

(b)where the deceased spouse was under pensionable age at his or her death, references in those sections to the pensioner and the tax year in which he attained pensionable age shall be taken as references to the deceased spouse and the tax year in which he or she died.

(4)Where a widowed parent’s allowance is payable to a person whose spouse dies after [F2055th October 2002], the additional pension falling to be calculated under sections 44 to [F20445] below [and Schedule 4A to this Act] by virtue of subsection (1) above shall be one half of the amount which it would be apart from this subsection.

(5)Where a bereavement allowance is payable to a person who was under the age of 55 at the time of the spouse’s death, the weekly rate of the allowance shall be reduced by 7 per cent. of what it would be apart from this subsection multiplied by the number of years by which that person’s age at that time was less than 55 (any fraction of a year being counted as a year).]

Textual Amendments

F201Ss. 39A-39C inserted (24.4.2000 for specified purposes and 9.4.2001 otherwise) by S.I. 1999/3147 (N.I. 11), art. 52(2); S.R. 2000/133, art. 2(3)(a), Sch. Pt. I

F203Words in s. 39C(1)(3)(4) inserted (8.1.2001, 1.2.2001 for specified purposes and 6.4.2002 otherwise) by 2000 c. 4 (N.I.), s. 33(4); S.R. 2000/358, art. 2(e), Sch. Pt. IV (as amended by S.R. 2000/374, art. 3); S.R. 2001/34, art. 2(a)

F205Words in s. 39C(4) substituted (retrospectively) by virtue of 2000 c. 4 (N.I.), s. 35(1)(a)(2)(a)

Modifications etc. (not altering text)

C30S. 39C modified (6.10.2002) by S.R. 2001/441, art. 2

[F20640 Long-term incapacity benefit for widows.N.I.

(1)Subject to subsection (2) below, this section applies to a woman who—

(a)on her late husband’s death is not entitled to a widowed mother’s allowance or subsequently ceases to be entitled to such an allowance;

(b)is incapable of work at the time when he dies or when she subsequently ceases to be so entitled;

(c)either—

(i)would have been entitled to a widow’s pension if she had been over the age of 45 when her husband died or when she ceased to be entitled to a widowed mother’s allowance; or

(ii)is entitled to such a pension with a reduction under section 39(4) above; and

(d)is not entitled to incapacity benefit apart from this section.

(2)This section does not apply to a woman unless—

(a)her husband died after 5th April 1979; or

(b)she ceased to be entitled to a widowed mother’s allowance after that date (whenever her husband died).

(3)A woman to whom this section applies is entitled to long-term incapacity benefit under this section for any day of incapacity for work which—

(a)falls in a period of incapacity for work that began before the time when her late husband died or she subsequently ceased to be entitled to a widowed mother’s allowance; and

(b)is after that time and after the first 364 days of incapacity for work in that period.

(4)A woman to whom this section applies who is not entitled to long-term incapacity benefit under subsection (3) above, but who is terminally ill, is entitled to short-term incapacity benefit under this section for any day of incapacity for work which—

(a)falls in a period of incapacity for work that began before the time when her late husband died or she subsequently ceased to be entitled to a widowed mother’s allowance; and

(b)is after that time and after the first 196 days of incapacity for work in that period.

For the purposes of this subsection a woman is terminally ill if she suffers from a progressive disease and her death in consequence of that disease can reasonably be expected within 6 months.

(5)The weekly rate of incapacity benefit payable under this section is—

(a)if the woman is not entitled to a widow’s pension, that which would apply if she were entitled to long-term incapacity benefit under section 30A above; and

(b)if she is entitled to a widow’s pension with a reduction under section 39(4) above, the difference between the weekly rate of that pension and the weekly rate referred to in paragraph (a) above.

(6)A woman is not entitled to incapacity benefit under this section if she is over pensionable age; but if she has attained pensionable age and the period of incapacity for work mentioned in subsection (3)(a) or (4)(a) above did not terminate before she attained that age—

(a)she shall, if not otherwise entitled to a Category A retirement pension, be entitled to such a pension; and

(b)the weekly rate of the Category A retirement pension to which she is entitled (whether by virtue of paragraph (a) above or otherwise) shall be determined in the prescribed manner.

(7)Where a woman entitled to short-term incapacity benefit under subsection (4) above attains pensionable age and defers her entitlement to a Category A retirement pension or makes an election under section 54(1) below, the days of incapacity for work falling within the period of incapacity for work mentioned in that subsection shall, for the purpose of determining any subsequent entitlement to incapacity benefit under section 30A above or the rate of that benefit, be treated as if they had been days of entitlement to short-term incapacity benefit.

(8)References to short-term incapacity benefit at the higher rate shall be construed as including short-term incapacity benefit payable under subsection (4) above.]

Textual Amendments

Modifications etc. (not altering text)

C31S. 40(8) applied (1.5.1995) by 1994 c. 9, s. 139(6) (as inserted by 1995 c. 4, s. 141(3))

[F20741 Long-term incapacity benefit for widowers.N.I.

(1)This section applies to a man whose wife has died on or after 6th April 1979 and who either—

(a)was incapable of work at the time when she died; or

(b)becomes incapable of work within the prescribed period after that time;

and is not entitled to incapacity benefit apart from this section.

(2)A man to whom this section applies is entitled to long-term incapacity benefit under this section for any day of incapacity for work which—

(a)falls in a period of incapacity for work that began before the time when his wife died or within the prescribed period after that time; and

(b)is after that time and after the first 364 days of incapacity for work in that period.

(3)A man to whom this section applies who is not entitled to long-term incapacity benefit under subsection (2) above, but who is terminally ill, is entitled to short-term incapacity benefit under this section for any day of incapacity for work which—

(a)falls in a period of incapacity for work that began before the time when his late wife died or within the prescribed period after that time; and

(b)is after that time and after the first 196 days of incapacity for work in that period.

For the purposes of this subsection a man is terminally ill if he suffers from a progressive disease and his death in consequence of that disease can reasonably be expected within 6 months.

(4)The weekly rate of incapacity benefit payable under this section is that which would apply if he were entitled to long-term incapacity benefit under section 30A above.

(5)A man is not entitled to incapacity benefit under this section if he is over pensionable age; but if he has attained pensionable age, and the period of incapacity for work mentioned in subsection (2)(a) or (3)(a) above did not terminate before he attained that age—

(a)he shall, if not otherwise entitled to a Category A retirement pension and also not entitled to a Category B retirement pension by virtue of [F208the contributions of his wife], be entitled to a Category A retirement pension; and

(b)the weekly rate of the Category A retirement pension to which he is entitled (whether by virtue of paragraph (a) above or otherwise) shall be determined in the prescribed manner.

(6)Where a man entitled to short-term incapacity benefit under subsection (3) above attains pensionable age and defers his entitlement to a Category A retirement pension or makes an election under section 54(1) below, the days of incapacity for work falling within the period of incapacity for work mentioned in that subsection shall, for the purpose of determining any subsequent entitlement to incapacity benefit under section 30A above or the rate of that benefit, be treated as if they had been days of entitlement to short-term incapacity benefit.

(7)References to short-term incapacity benefit at the higher rate shall be construed as including short-term incapacity benefit payable under subsection (3) above.]

Textual Amendments

F208Words in s. 41(5)(a) substituted (16.12.1995 subject to Sch. 2 of the amending S.I.) by S.I. 1995/3213 (N.I. 22), arts. 1(3), 123, Sch. 2 Pt. III para. 18(4)

Modifications etc. (not altering text)

C32S. 41(7) applied (1.5.1995) by 1994 c. 9, s. 139(6) (as inserted by 1995 c. 4, s. 141(3))

[F20942 Entitlement under s. 40 or 41 after period of employment or training for work.N.I.

[F210(1)Where a person claims incapacity benefit under section 40 or 41 above for a period commencing after he has ceased to be in qualifying remunerative work (within the meaning of Part 1 of the Tax Credits Act 2002) and—

(a)the day following that on which he so ceased was a day of incapacity for work for him,

(b)he has been entitled to incapacity benefit under that section within the period of two years ending with that day of incapacity for work, and

(c)he satisfied the relevant tax credit conditions on the day before he so ceased,

every day during that period on which he satisfied those conditions is to be treated for the purposes of the claim as a day of incapacity for work for him.

(1A)A person satisfies the relevant tax credit conditions on a day if—

(a)he is entitled for the day to the disability element of working tax credit (on a claim made by him or by him jointly with another) or would be so entitled but for the fact that the relevant income (within the meaning of Part 1 of the Tax Credits Act 2002) in his or their case is such that he is not so entitled, and

(b)either working tax credit or any element of child tax credit other than the family element is paid in respect of the day on such a claim.]

(2)Where—

(a)a person becomes engaged in training for work; and

(b)he was entitled to incapacity benefit under section 40 or 41 above for one or more of the 56 days immediately before he became so engaged; and

(c)the first day after he ceases to be so engaged is for him a day of incapacity for work and falls not later than the end of the period of two years beginning with the last day for which he was entitled to incapacity benefit under that section,

any day since that day in which he was engaged in training for work shall be treated for the purposes of any claim for incapacity benefit under that section for a period commencing after he ceases to be so engaged as having been a day of incapacity for work.

In this subsection “training for work” means training for work in pursuance of arrangements made under section 1(1) of the Employment and Training Act (Northern Ireland) 1950 or training of such other description as may be prescribed.

(3)For the purposes of this section “week” means any period of 7 days.]

Retirement pensions (Categories A and B)N.I.

43 Persons entitled to more than one retirement pension.N.I.

(1)A person shall not be entitled for the same period to more than one retirement pension under this Part of this Act except as provided by subsection (2) below.

(2)A person who, apart from subsection (1) above, would be entitled for the same period to both—

(a)a Category A or a Category B retirement pension under this Part; and

(b)a Category C or a Category D retirement pension under Part III of this Act,

shall be entitled to both of those pensions for that period, subject to any adjustment of them in pursuance of regulations under section 71 of the Administration Act.

(3)A person who, apart from subsection (1) above, would be entitled—

(a)to both a Category A and a Category B retirement pension under this Part for the same period, or

(b)to both a Category C and a Category D retirement pension under Part III of this Act for the same period,

may from time to time give notice in writing to the Department specifying which of the pensions referred to in paragraph (a) or, as the case may be, paragraph (b) above he wishes to receive.

(4)If a person gives such a notice, the pension so specified shall be the one to which he is entitled in respect of any week commencing after the date of the notice.

(5)If no such notice is given, the person shall be entitled to whichever of the pensions is from time to time the most favourable to him (whether it is the pension which he claimed or not).

[F211(6)For the purposes of this section, a pension under section 55A below is not a retirement pension.]

44 Category A retirement pension.N.I.

(1)A person shall be entitled to a Category A retirement pension if—

(a)he is over pensionable age; and

(b)he satisfies the contribution conditions for a Category A retirement pension specified in Schedule 3, Part I, paragraph 5;

and, subject to the provisions of this Act, he shall become so entitled on the day on which he attains pensionable age and his entitlement shall continue throughout his life.

(2)A Category A retirement pension shall not be payable in respect of any period falling before the day on which the pensioner’s entitlement is to be regarded as commencing for that purpose by virtue of section 5(1)(l) of the Administration Act.

(3)A Category A retirement pension shall consist of—

(a)a basic pension payable at a weekly rate; and

(b)an additional pension payable where there are one or more surpluses in the pensioner’s earnings factors for the relevant years.

[F212(4)The weekly rate of the basic pension shall be [F213£77·45] except that, so far as the sum is relevant for the purpose of calculating the lower rate of short-term incapacity benefit under section 30B(3) above, it shall be [F214£69·20] .

In this subsection “the lower rate” means the rate payable for the first 196 days of entitlement in any period of incapacity for work.]

[F215(5A)For the purpose of this section and section 45 below [F216and Schedule 4A to this Act]

(a)there is a surplus in the pensioner’s earnings factor for a relevant year if that factor exceeds the qualifying earnings factor for [F217that year,

(b)the amount of the surplus is the amount of that excess, and

(c)for the purposes of section 45(1) and (2)(a) and (b) below, the adjusted amount of the surplus] is the amount of that excess, as increased by the last order under section 130 of the Administration Act to come into operation before the end of the final relevant year.]

(6)[F218Subject to subsection (7A) below] any reference in this section or section 45 below [F219or Schedule 4A to this Act] to the pensioner’s earnings factor for any relevant year is a reference—

[F220(za)where the relevant year is the first appointed year or any subsequent year, to the aggregate of his earnings factors derived from [F221so much of his earnings as did not exceed the upper earnings limit and] upon which primary Class 1 contributions have been paid or treated as paid in respect of that year;]

(a)where the relevant year is 1987-88 or any subsequent tax year [F222before the first appointed year], to the aggregate of—

(i)his earnings factors derived from earnings upon which primary Class 1 contributions were paid or treated as paid in respect of that year, and

[F223(ii)his earnings factors derived from Class 2 and Class 3 contributions actually paid in respect of that year, or, if less, the qualifying earnings factor for that year; and

(b)where the relevant year is an earlier tax year, to the aggregate of—

(i)his earnings factors derived from Class 1 contributions actually paid by him in respect of that year; and

(ii)his earnings factors derived from Class 2 and Class 3 contributions actually paid by him in respect of that year, or, if less, the qualifying earnings factor for that year.]

(7)In this section—

(a)relevant year” means 1978-79 or any subsequent tax year in the period between—

(i)(inclusive) the tax year in which the pensioner attained the age of 16, and

(ii)(exclusive) the tax year in which he attained pensionable age;

(b)final relevant year” means the last tax year which is a relevant year in relation to the pensioner.

[F224(7A)The Department may prescribe circumstances in which pensioners’ earnings factors for any relevant year may be calculated in such manner as may be prescribed.]

(8)For the purposes of this section any order under Article 23 of the Pensions Order (which made provision corresponding to section 130 of the Administration Act) shall be treated as an order under section 130 (but without prejudice to sections 16 and 17 of the M7Interpretation Act 1978).

Textual Amendments

F213Sum in s. 44(4) substituted (with effect in accordance with art. 6 of the amending Rule) by The Social Security Benefits Up-rating Order (Northern Ireland) 2003 (S.R. 2003/155), arts. 1(1)(d), 4(3)(b)

F214Sum in s. 44(4) substituted (with effect in accordance with art. 6 of the amending Rule) by The Social Security Benefits Up-rating Order (Northern Ireland) 2003 (S.R. 2003/155), arts. 1(1)(d), 4(3)(a)

F215S. 44(5A) substituted for s. 44(5) (16.12.1995 subject to Sch. 2 of the amending S.I.) by S.I. 1995/3213 (N.I. 22), arts. 1(3), 125(1)(4)-(6)

F216Words in s. 44(5A) inserted (8.1.2001, 1.2.2001 for specified purposes and 6.4.2002 otherwise) by 2000 c. 4 (N.I.), s. 33(5); S.R. 2000/358, art. 2(e), Sch. Pt. IV (as amended by S.R. 2000/374, art. 3); S.R. 2001/34, art. 2(a)

F217Words in s. 44(5A) substituted (8.1.2001, 1.2.2001 for specified purposes and 6.4.2002 otherwise) by 2000 c. 4 (N.I.), s. 33(6); S.R. 2000/358, art. 2(e), Sch. Pt. IV (as amended by S.R. 2000/374, art. 3); S.R. 2001/34, art. 2(a)

F218Words in s. 44(6) inserted (temp. from 1.7.1992) by Social Security (Consequential Provisions)(Northern Ireland) Act 1992 (c. 9), s. 6, Sch. 4 Pt. I paras. 1, 2

F219Words in s. 44(6) inserted (8.1.2001, 1.2.2001 for specified purposes and 6.4.2002 otherwise) by 2000 c. 4 (N.I.), s. 33(7); S.R. 2000/358, art. 2(e), Sch. Pt. IV (as amended by S.R. 2000/374, art. 3); S.R. 2001/34, art. 2(a)

F220S. 44(6)(za) inserted (8.1.2001, 1.2.2001 for specified purposes and 6.4.2002 otherwise) by 2000 c. 4 (N.I.), s. 29(2)(a); S.R. 2000/358, art. 2(e), Sch. Pt. IV (as amended by S.R. 2000/374, art. 3); S.R. 2001/34, art. 2(a)

F221Words in s. 44(6)(za) substituted (with effect for 2003-04 and subsequent tax years) by National Insurance Contributions Act 2002 (c. 19), ss. 6, 8(2), Sch. 1 para. 29

F222Words in s. 44(6) inserted (8.1.2001, 1.2.2001 for specified purposes and 6.4.2002 otherwise) by 2000 c. 4 (N.I.), s. 29(2)(b); S.R. 2000/358, art. 2(e), Sch. Pt. IV (as amended by S.R. 2000/374, art. 3); S.R. 2001/34, art. 2(a)

F223S. 44(6)(a)(ii)(b) substituted (16.12.1995 subject to Sch. 2 of the amending S.I.) by S.I. 1995/3213 (N.I. 22), arts. 1(3), 125(2)(4)-(6)

Modifications etc. (not altering text)

C34S. 44(5A) modified (29.12.2000) by S.R. 2000/360, reg. 2

Marginal Citations

[F22544A Deemed earnings factorsN.I.

(1)For the purposes of section 44(6)(za) above, if any of the conditions in subsection (2) below is satisfied for a relevant year, a pensioner is deemed to have an earnings factor for that year which—

(a)is derived from [F226so much of his earnings as did not exceed the upper earnings limit and] on which primary Class 1 contributions were paid; and

(b)is equal to the amount which, when added to any other earnings factors taken into account under that provision, produces an aggregate of earnings factors equal to the low earnings threshold.

(2)The conditions referred to in subsection (1) above are that—

(a)the pensioner would, apart from this section, have an earnings factor for the year—

(i)equal to or greater than the qualifying earnings factor for the year; but

(ii)less than the low earnings threshold for the year;

(b)[F227carer’s allowance]

(i)was payable to the pensioner throughout the year; or

(ii)would have been so payable but for the fact that under regulations the amount payable to him was reduced to nil because of his receipt of other benefits;

(c)for the purposes of paragraph 5(7)(b) of Schedule 3, the pensioner is taken to be precluded from regular employment by responsibilities at home throughout the year by virtue of—

(i)the fact that child benefit was payable to him in respect of a child under the age of six; or

(ii)his satisfying such other condition as may be prescribed; or

(d)the pensioner is a person satisfying the requirement in subsection (3) below to whom long-term incapacity benefit was payable throughout the year, or would have been so payable but for the fact that—

(i)he did not satisfy the contribution conditions specified in paragraph 2 of Schedule 3; or

(ii)under regulations the amount payable to him was reduced to nil because of his receipt of other benefits or of payments from an occupational pension scheme or personal pension scheme.

(3)The requirement referred to in subsection (2)(d) above is that—

(a)for one or more relevant years the pensioner has paid, or (apart from this section) is treated as having paid, primary Class 1 contributions on earnings equal to or greater than the qualifying earnings factor; and

(b)the years for which he has such a factor constitute at least one tenth of his working life.

(4)For the purposes of subsection (3)(b) above—

(a)a pensioner’s working life shall not include—

(i)any tax year before 1978-79; or

(ii)any year in which he is deemed under subsection (1) above to have an earnings factor by virtue of fulfilling the condition in subsection (2)(b) or (c) above; and

(b)the figure calculated by dividing his working life by ten shall be rounded to the nearest whole year (and any half year shall be rounded down).

(5)The low earnings threshold for the first appointed year and subsequent tax years shall be £9,500 (but subject to section 130A of the Administration Act).

(6)In subsection (2)(d)(ii) above, “occupational pension scheme” and “personal pension scheme” have the same meanings as in subsection (6) of section 30DD above for the purposes of subsection (5) of that section.]

Textual Amendments

F225S. 44A inserted (8.1.2001, 1.2.2001 for specified purposes and 6.4.2002 otherwise) by 2000 c. 4 (N.I.), s. 29(3); S.R. 2000/358, art. 2(e), Sch. Pt. IV (as amended by S.R. 2000/374, art. 3); S.R. 2001/34, art. 2(a)

F226Words in s. 44A(1)(a) substituted (with effect for 2003-04 and subsequent tax years) by National Insurance Contributions Act 2002 (c. 19), ss. 6, 8(2), Sch. 1 para. 30

F227Words in s. 44A(2)(b) substituted (21.10.2002 for certain purposes and 1.4.2003 otherwise) by The Deregulation (Carer's Allowance) Order (Northern Ireland) 2002 (S.R. 2002/321), arts. 1, 2(2)(a)(i)

Modifications etc. (not altering text)

C35S. 44A(1) modified (8.1.2001, 1.2.2001 for specified purposes and 6.4.2002 otherwise) by 2000 c. 4 (N.I.), s. 29(4); S.R. 2000/358, art. 2(e), Sch. Pt. IV (as amended by S.R. 2000/374, art. 3); S.R. 2001/34, art. 2(a)

45 The additional pension in a Category A retirement pension.N.I.

(1)The weekly rate of the additional pension in a Category A retirement pension in any case where the pensioner attained pensionable age in a tax year before 6th April 1999 shall be the weekly equivalent of 1 1/4 per cent. of the [F228adjusted] amount of the surpluses mentioned in section 44(3)(b) above.

(2)The weekly rate of the additional pension in a Category A retirement pension in any case where the pensioner attained pensionable age in a tax year after 5th April 1999 shall be [F229the sum of the following]

(a)in relation to any surpluses in the pensioner’s earnings factors for the tax years in the period beginning with 1978-79 and ending with 1987-88, the weekly equivalent of 25/N per cent. of the [F228adjusted] amount of those surpluses; and

(b)in relation to any surpluses in the pensioner’s earnings factors in a tax year after 1987-88 [F230but before the first appointed year], the weekly equivalent of the relevant percentage of the [F228adjusted] amount of those surpluses [F231; and

(c)in relation to any tax years falling within subsection (3A) below, the weekly equivalent of the amount calculated in accordance with Schedule 4A to this Act.]

(3)In subsection (2)(b) above, “relevant percentage” means—

(a)20/N per cent., where the pensioner attained pensionable age in 2009-10 or any subsequent tax year;

(b)(20+X)/N per cent., where the pensioner attained pensionable age in a tax year falling within the period commencing with 1999-2000 and ending with 2008-9.

[F232(3A)The following tax years fall within this subsection—

(a)the first appointed year;

(b)subsequent tax years.]

(4)In this section—

(a)X = 0.5 for each tax year by which the tax year in which the pensioner attained pensionable age precedes 2009-10; and

(b)N = the number of tax years in the pensioner’s working life which fall after 5th April 1978;

but paragraph (b) above is subject, in particular, to subsection (5) and, where applicable, section 46 below.

(5)Regulations may direct that in prescribed cases or classes of cases any tax year shall be disregarded for the purpose of calculating N under subsection (4)(b) above, if it is a tax year after 5th April 1978 in which the pensioner—

(a)was credited with contributions or earnings under this Act by virtue of regulations under section 22(5) above, or

(b)was precluded from regular employment by responsibilities at home, or

(c)in prescribed circumstances, would have been treated as falling within paragraph (a) or (b) above,

but not so as to reduce the number of years below 20.

(6)For the purposes of subsections (1) and (2) above, the weekly equivalent of [F233any amount] shall be calculated by dividing that amount by 52 and rounding the result to the nearest whole penny, taking any 1/2p as nearest to the next whole penny.

(7)Where the amount falling to be rounded under subsection (6) above is a sum less than 1/2p, the amount calculated under that subsection shall be taken to be zero, notwithstanding any other provision of this Act or the Administration Act.

(8)The sums which are the weekly rate of the additional pension in a Category A retirement pension are subject to alteration by orders made by the Department under section 132 of the Administration Act.

Textual Amendments

F228Words in s. 45(1)(2)(a)(b) inserted (8.1.2001, 1.2.2001 for specified purposes and 6.4.2002 otherwise) by 2000 c. 4 (N.I.), s. 33(8)(a); S.R. 2000/358, art. 2(e), Sch. Pt. IV (as amended by S.R. 2000/374, art. 3); S.R. 2001/34, art. 2(a)

F229Words in s. 45(2) inserted (8.1.2001, 1.2.2001 for specified purposes and 6.4.2002 otherwise) by 2000 c. 4 (N.I.), s. 30(1)(a); S.R. 2000/358, art. 2(e), Sch. Pt. IV (as amended by S.R. 2000/374, art. 3); S.R. 2001/34, art. 2(a)

F230Words in s. 45(2)(b) inserted (8.1.2001, 1.2.2001 for specified purposes and 6.4.2002 otherwise) by 2000 c. 4 (N.I.), s. 30(1)(b); S.R. 2000/358, art. 2(e), Sch. Pt. IV (as amended by S.R. 2000/374, art. 3); S.R. 2001/34, art. 2(a)

F231S. 45(2)(c) and word “and” immediately preceding it added (8.1.2001, 1.2.2001 for specified purposes and 6.4.2002 otherwise) by 2000 c. 4 (N.I.), s. 30(1)(c); S.R. 2000/358, art. 2(e), Sch. Pt. IV (as amended by S.R. 2000/374, art. 3); S.R. 2001/34, art. 2(a)

F232S. 45(3A) inserted (8.1.2001, 1.2.2001 for specified purposes and 6.4.2002 otherwise) by 2000 c. 4 (N.I.), s. 30(2); S.R. 2000/358, art. 2(e), Sch. Pt. IV (as amended by S.R. 2000/374, art. 3); S.R. 2001/34, art. 2(a)

F233Words in s. 45(6) substituted (8.1.2001, 1.2.2001 for specified purposes and 6.4.2002 otherwise) by 2000 c. 4 (N.I.), s. 33(8)(b); S.R. 2000/358, art. 2(e), Sch. Pt. IV (as amended by S.R. 2000/374, art. 3); S.R. 2001/34, art. 2(a)

F234[F23545A] Effect of family credit and disability working allowance on earnings factor. N.I.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F235S. 45A inserted (16.12.1995 subject to Sch. 2 of the amending S.I.) by S.I. 1995/3213 (N.I. 22), arts. 1(3), 124

[F23645B Reduction of additional pension in Category A retirement pension: pension sharing.N.I.

(1)The weekly rate of the additional pension in a Category A retirement pension shall be reduced as follows in any case where—

(a)the pensioner has become subject to a state scheme pension debit, and

(b)the debit is to any extent referable to the additional pension.

(2)If the pensioner became subject to the debit in or after the final relevant year, the weekly rate of the additional pension shall be reduced by the appropriate weekly amount.

(3)If the pensioner became subject to the debit before the final relevant year, the weekly rate of the additional pension shall be reduced by the appropriate weekly amount multiplied by the relevant revaluation percentage.

(4)The appropriate weekly amount for the purposes of subsections (2) and (3) above is the weekly rate, expressed in terms of the valuation day, at which the cash equivalent, on that day, of the pension mentioned in subsection (5) below is equal to so much of the debit as is referable to the additional pension.

(5)The pension referred to above is a notional pension for the pensioner by virtue of section 44(3)(b) above which becomes payable on the later of—

(a)his attaining pensionable age, and

(b)the valuation day.

(6)For the purposes of subsection (3) above, the relevant revaluation percentage is the percentage specified, in relation to earnings factors for the tax year in which the pensioner became subject to the debit, by the last order under section 130 of the Administration Act to come into operation before the end of the final relevant year.

[F237(7)The Department may by regulations make provision for the calculation and verification of cash equivalents for the purposes of this section.

(7A)The power conferred by subsection (7) above includes power to provide—

(a)for calculation or verification in such manner as may be approved by or on behalf of the Government Actuary, and

(b)for things done under the regulations to be required to be done in accordance with guidance from time to time prepared by a person prescribed by the regulations.]

(8)In this section—

  • “final relevant year” means the tax year immediately preceding that in which the pensioner attains pensionable age;

  • “state scheme pension debit” means a debit under Article 46(1)(a) of the Welfare Reform and Pensions (Northern Ireland) Order 1999 (debit for the purposes of this Part of this Act);

  • “valuation day” means the day on which the pensioner became subject to the state scheme pension debit.]

46 Modifications of s. 45 for calculating the additional pension in certain benefits.N.I.

F238(1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2)For the purpose of determining the additional pension falling to be calculated under section 45 above by virtue of section 39(1) [F239or 39C(1)]. . . above or section [F24048A(4) [F241, 48B(2) or 48BB(5)]] below in a case where the deceased spouse died under pensionable age, the following definition shall be substituted for the definition of “N” in section 45(4)(b) above—

[F242N=

(a)

the number of tax years which begin after 5th April 1978 and end before the date when the entitlement to the additional pension commences, or

(b)

the number of tax years in the period—

(i)

beginning with the tax year in which the deceased spouse (“S”) attained the age of 16 or if later 1978 79, and

(ii)

ending immediately before the tax year in which S would have attained pensionable age if S had not died earlier.

whichever is the smaller number.]

.

[F243(3)For the purpose of determining the additional pension falling to be calculated under section 45 above by virtue of section 48BB below in a case where the deceased spouse died under pensionable age, the following definition shall be substituted for the definition of “N” in section 45(4)(b) above—

“N” =

“a

the number of tax years which begin after 5th April 1978 and end before the date when the deceased spouse dies, or

b

the number of tax years in the period—

(i)

beginning with the tax year in which the deceased spouse (“S”) attained the age of 16 or, if later, 1978-79, and

(ii)

ending immediately before the tax year in which S would have attained pensionable age if S had not died earlier,

whichever is the smaller number. ”]

Textual Amendments

F239Words in s. 46(2) inserted (24.4.2000 for specified purposes and 9.4.2001 otherwise) by S.I. 1999/3147 (N.I. 11), art. 67, Sch. 8 para. 4(a); S.R. 2000/133, art. 2(3)(a), Sch. Pt. I

F240Words in s. 46(2) substituted (16.12.1995 subject to Sch. 2 of the amending S.I.) by S.I. 1995/3213 (N.I. 22), arts. 1(3), 123, Sch. 2 Pt. III para. 18(5)

F241Words in s. 46(2) substituted (24.4.2000 for specified purposes and 9.4.2001 otherwise) by S.I. 1999/3147 (N.I. 11), art. 67, Sch. 8 para. 4(b); S.R. 2000/133, art. 2(3)(a), Sch. Pt. I

F242Words in s. 46(2) substituted (16.12.1995 subject to Sch. 2 of the amending S.I.) by S.I. 1995/3213 (N.I. 22), arts. 1(3), 123, Sch. 2 Pt. II para. 5

F243S. 46(3) added (8.1.2001 for specified purposes and 9.4.2001 otherwise) by 2000 c. 4 (N.I.), s. 31(1); S.R. 2000/358, art. 2(e), Sch. Pt. IV (as amended by S.R. 2000/374, art. 3); S.R. 2001/34, art. 2(c)

47 Increase of Category A retirement pension for invalidity.N.I.

(1)Subject to section 61 below, the weekly rate of a Category A retirement pension shall be increased if the pensioner was entitled to an [F244age addition to long-term incapacity benefit by virtue of regulations under section 30B(7) above] in respect of—

(a)any day falling within the period of 8 weeks ending immediately before the day on which he attains pensionable age; or

(b)the last day before the beginning of that period;

and the increase shall, subject to subsection (2) below, be of an amount equal to the appropriate weekly rate of the [F244age addition to long-term incapacity benefit by virtue of regulations under section 30B(7) above] on that day.

(2)Where for any period the weekly rate of a Category A retirement pension includes an additional pension, for that period the relevant amount shall be deducted from the amount that would otherwise be the increase under subsection (1) above and the pensioner shall be entitled to an increase under that subsection only if there is a balance remaining after that deduction and, if there is such a balance, of an amount equal to it.

(3)In subsection (2) above the “relevant amount” means an amount equal to the additional pension, reduced by the amount of any reduction in the weekly rate of the Category A retirement pension made by virtue of [F245section 42 of the Pensions Act].

(4)In this section any reference to an additional pension is a reference to that pension after any increase under section 52(3) below but without any increase under paragraphs 1 and 2 of Schedule 5 to this Act.

(5)In ascertaining for the purposes of subsection (1) above the rate of a pensioner’s [F244age addition to long-term incapacity benefit by virtue of regulations under section 30B(7) above], regard shall be had to the rates in force from time to time.

(6)Regulations may provide that subsection (1) above shall have effect as if for the reference to 8 weeks there were substituted a reference to a larger number of weeks specified in the regulations.

Textual Amendments

F245Words in s. 47(3) substituted (7.2.1994) by 1993 c. 49, s. 184, Sch. 7 para. 33; S.R. 1994/17, art. 2

Modifications etc. (not altering text)

C36S. 47 modified (7.2.1994) by 1993 c. 49, s. 42(4); S.R. 1994/17, art. 2

S. 47 modified (13.4.1995) by S.R. 1995/35, reg. 23

C37S. 47(1) modified (7.2.1994) by 1993 c. 49, s. 42(5); S.R. 1994/17, art. 2

C38S. 47(2) modified (7.2.1994) by 1993 c. 49, s. 44(2); S.R. 1994/17, art. 2

48 Use of former spouse’s contributions.N.I.

(1)Where a person—

(a)has been married, and

(b)in respect of the tax year in which the marriage terminated or any previous tax year, does not with his own contributions satisfy the contribution conditions for a Category A retirement pension,

then, for the purpose of enabling him to satisfy those conditions (but only in respect of any claim for a Category A retirement pension), the contributions of his former spouse may to the prescribed extent be treated as if they were his own contributions.

(2)Subsection (1) above shall not apply in relation to any person who attained pensionable age before 6th April 1979 if the termination of his marriage also occurred before that date.

(3)Where a person has been married more than once this section applies only to the last marriage and the references to his marriage and his former spouse shall be construed accordingly.

[F24648A Category B retirement pension for married person.N.I.

(1)A person who—

(a)has attained pensionable age, and

(b)on attaining that age was a married person or marries after attaining that age,

shall be entitled to a Category B retirement pension by virtue of the contributions of the other party to the marriage (“the spouse”) if the following requirement is met.

(2)The requirement is that the spouse—

(a)has attained pensionable age and become entitled to a Category A retirement pension, and

(b)satisfies the conditions specified in Schedule 3, Part I, paragraph 5.

(3)During any period when the spouse is alive, a Category B retirement pension payable by virtue of this section shall be payable at the weekly rate specified in Schedule 4, Part I, paragraph 5.

(4)During any period after the spouse is dead, a Category B retirement pension payable by virtue of this section shall be payable at the weekly rate corresponding to—

(a)the weekly rate of the basic pension, plus

(b)half of the weekly rate of the additional pension, determined in accordance with the provisions of sections 44 to [F24745B] above [F248and Schedule 4A to this Act] as they apply in relation to a Category A retirement pension but subject to section 46(2) above and the modification in section 48C(4) below.

[F249(4A)Subsection (4) above shall have effect with the omission of the words from “plus” to the end if the pensioner is not the widow or widower of the person by virtue of whose contributions the pension is payable.]

(5)person’s Category B retirement pension payable by virtue of this section shall not be payable for any period falling before the day on which the spouse’s entitlement is to be regarded as beginning for that purpose by virtue of section 5(1)(1) of the Administration Act.]

Textual Amendments

F246S. 48A-48C substituted for ss. 49, 50 (16.12.1995) by S.I. 1995/3213 (N.I. 22), arts. 1(3), 123, Sch. 2 Pt. II para. 3(1)

F248Words in s. 48A(4) inserted (8.1.2001, 1.2.2001 for specified purposes and 6.4.2002 otherwise) by 2000 c. 4 (N.I.), s. 33(9); S.R. 2000/358, art. 2(e), Sch. Pt. IV (as amended by S.R. 2000/374, art. 3); S.R. 2001/34, art. 2(a)

Modifications etc. (not altering text)

C40S. 48A modified (6.10.2002) by S.R. 2001/441, art. 2

[F25048B Category B retirement pension for widows and widowers.N.I.

(1)A person (“the pensioner” whose spouse died—

(a)while they were married, and

(b)after the pensioner attained pensionable age,

shall be entitled to a Category B retirement pension by virtue of the contributions of the spouse if the spouse satisfied the conditions specified in Schedule 3, Part I, paragraph 5.

(2)A Category B retirement pension payable by virtue of subsection (1) above shall be payable at a weekly rate corresponding to—

(a)the weekly rate of the basic pension, plus

(b)half of the weekly rate of the additional pension,

determined in accordance with the provision of sections 44 to [F25145B] above [F252and Schedule 4A to this Act] as they apply in relation to a Category A retirement pension, but subject to section 46(2) above and the modifications in subsection (3) below and section 48C(4) below.

(3)Where the spouse died under pensionable age, references in the provisions of section 44 to [F25145B] above [F252and Schedule 4A to this Act] as applied by subsection (2) above to the tax year in which the pensioner attained pensionable age shall be taken as references to the tax year in which the spouse died.

(4)A person who has attained pensionable age (“he pensioner”) whose spouse died before the pensioner attained that age shall be entitled to a Category B retirement pension by virtue of the contributions of the spouse if—

(a)where the pensioner is a woman, the following condition is satisfied, and

(b)where the pensioner is a man, the following condition would have been satisfied on the assumption mentioned in subsection (7) below.

(5)The condition is that the pensioner—

(a)is entitled (or is treated by regulations as entitled) to a widow’s pension by virtue of section 38 above, and

(b)became entitled to that pension in consequence of the spouse’s death.

(6)A Category B retirement pension payable by virtue of subsection (4) above shall be payable—

(a)where the pensioner is a woman, at the same weekly rate as her widow’s pension and

(b)where the pensioner is a man, at the same weekly rate as that of the pension to which he would have been entitled by virtue of section 38 above on the assumption mentioned in subsection (7) below.

(7)The assumption referred to in subsections (4) and (6) above is that a man is entitled to a pension by virtue of section 38 above on the same terms and conditions, and at the same rate, as a woman.

[F253(8)Nothing in subsections (4) to (7) above applies in a case where the spouse dies on or after the appointed day (as defined by section 36A(3)).]]

Textual Amendments

F250Ss. 48A-48C substituted for ss. 49, 50 (16.12.1995 subject to Sch. 2 of the amending S.I.) by S.I. 1995/3213 (N.I. 22), arts. 1(3), 123, Sch. 2 Pt. II para. 3(1)

F252Words in s. 48B(2)(3) inserted (8.1.2001, 1.2.2001 for specified purposes and 6.4.2002 otherwise) by 2000 c. 4 (N.I.), s. 33(10); S.R. 2000/358, art. 2(e), Sch. Pt. IV (as amended by S.R. 2000/374, art. 3); S.R. 2001/34, art. 2(a)

F253S. 48B(8) added (24.4.2000 for specified purposes and 9.4.2001 otherwise) by S.I. 1999/3147 (N.I. 11), art. 67, Sch. 8 para. 5; S.R. 2000/133, art. 2(3)(a), Sch. Pt. I

Modifications etc. (not altering text)

C41S. 48B restricted (16.12.1995 subject to Sch. 2 of the amending S.I.) by S.I. 1995/3213 (N.I. 22), arts. 1(3), 123, Sch. 2 Pt. II para. 3(3)

C42S. 48B modified (6.10.2002) by S.R. 2001/441, art. 2

[F25448BB Category B retirement pension: entitlement by reference to benefits under section 39A or 39B.N.I.

(1)Subsection (2) below applies where a person (“the pensioner”) who has attained pensionable age—

(a)was, immediately before attaining that age, entitled to a widowed parent’s allowance in consequence of the death of his or her spouse; and

(b)has not remarried.

(2)The pensioner shall be entitled to a Category B retirement pension by virtue of the contributions of the spouse, which shall be payable at the same weekly rate as the widowed parent’s allowance.

(3)Subsections (4) to (10) below apply where a person (“the pensioner”) who has attained pensionable age—

(a)was in consequence of the death of his or her spouse either—

(i)entitled to a bereavement allowance at any time prior to attaining that age, or

(ii)entitled to a widowed parent’s allowance at any time when over the age of 45 (but not immediately before attaining pensionable age); and

(b)has not remarried.

(4)The pensioner shall be entitled to a Category B retirement pension by virtue of the contributions of the spouse.

(5)A Category B retirement pension payable by virtue of subsection (4) above shall be payable at a weekly rate corresponding to the weekly rate of the additional pension determined in accordance with the provisions of sections 44 to [F25545] above [F256and Schedule 4A to this Act] as they apply in relation to a Category A retirement pension, but subject, in particular, to the following provisions of this section and [F257section 46(3)] above.

(6)Where the spouse died under pensionable age, references in the provisions of sections 44 to [F25545] above [F256and Schedule 4A to this Act], as applied by subsection (5) above, to the tax year in which the pensioner attained pensionable age shall be taken as references to the tax year in which the spouse died.

(7)Where the spouse dies after [F2585th October 2002], the pension payable by virtue of subsection (4) above shall (before making any reduction required by subsection (8) below) be one half of the amount which it would be apart from this subsection.

(8)Where the pensioner was under the age of 55 at the relevant time, the weekly rate of the pension shall be reduced by 7 per cent. of what it would be apart from this subsection multiplied—

(a)by the number of years by which the pensioner’s age at that time was less than 55 (any fraction of a year being counted as a year), or

(b)by ten, if that number exceeds ten.

(9)In subsection (8) above “the relevant time” means—

(a)where the pensioner became entitled to a widowed parent’s allowance in consequence of the death of the spouse, the time when the pensioner’s entitlement to that allowance ended; and

(b)otherwise, the time of the spouse’s death.

(10)The amount determined in accordance with subsections (5) to (9) above as the weekly rate of the pension payable to the pensioner by virtue of subsection (4) above shall be increased by such percentage as equals the overall percentage by which, had the pension been in payment as from the date of the spouse’s death until the date when the pensioner attained pensionable age, that weekly rate would have been increased during that period by virtue of any orders under section 132 of the Administration Act (annual up-rating of benefits).]

Textual Amendments

F254S. 48BB inserted (24.4.2000 for specified purposes and 9.4.2001 otherwise) by S.I. 1999/3147 (N.I. 11), art. 53; S.R. 2000/133, art. 2(3)(a), Sch. Pt. I

F256Words in s. 48BB(5)(6) inserted (8.1.2001, 1.2.2001 for specified purposes and 6.4.2002 otherwise) by 2000 c. 4 (N.I.), s. 33(11); S.R. 2000/358, art. 2(e), Sch. Pt. IV (as amended by S.R. 2000/374, art. 3); S.R. 2001/34, art. 2(a)

F257Words in s. 48BB(5) substituted (8.1.2001 for specified purposes and 9.4.2001 otherwise) by 2000 c. 4 (N.I.), s. 31(2); S.R. 2000/358, art. 2(e), Sch. Pt. IV (as amended by S.R. 2000/374, art. 3); S.R. 2001/34, art. 2(c)

F258Words in s. 48BB(7) substituted (retrospectively) by virtue of 2000 c. 4 (N.I.), s. 35(1)(a)(2)(b)

Modifications etc. (not altering text)

C43S. 48BB modified (6.10.2002) by S.R. 2001/441, art. 2

[F25948C Category B retirement pension: general.N.I.

(1)Subject to the provisions of this Act, a person’s entitlement to a Category B retirement pension shall begin on the day on which the conditions of entitlement become satisfied and shall continue for life.

(2)In any case where—

(a)a person would, apart from section 43(1) above, be entitled both to a Category A and to a Category B retirement pension, and

(b)section 47(1) above would apply for the increase of the Category A retirement pension,

section 47(1) above shall be taken as applying also for the increase of the Category B retirement pension, subject to reduction or extinguishment of the increase by the application of section 47(2) above or section 42(5) of the Pensions Act.

(3)In the case of a pensioner whose spouse died on or before [F2605th October 2002]], sections 48A(4)(b) and 48B(2)(b) above shall have effect with the omission of the words “half of”.

(4)In the application of the provisions of section 44 to [F26145B] above [F262and Schedule 4A to this Act] by virtue of sections 48A(4) [F263, 48B(2) or 48BB(5)] above, references in those provisions to the pensioner shall be taken as references to the spouse.

Textual Amendments

F259Ss. 48A-48C substituted for ss. 49, 50 (16.12.1995 subject to Sch. 2 of the amending S.I.) by S.I. 1995/3213 (N.I. 22), arts. 1(3), 123, Sch. 2 Pt. II para. 3(1)

F260Words in s. 48C(3) substituted (retrospectively) by virtue of 2000 c. 4 (N.I.), s. 35(1)(a)(2)(b)

F262Words in s. 48C(4) inserted (8.1.2001, 1.2.2001 for specified purposes and 6.4.2002 otherwise) by 2000 c. 4 (N.I.), s. 33(12); S.R. 2000/358, art. 2(e), Sch. Pt. IV (as amended by S.R. 2000/374, art. 3); S.R. 2001/34, art. 2(a)

F263Words in s. 48C(4) substituted (24.4.2000 for specified purposes and 9.4.2001 otherwise) by S.I. 1999/3147 (N.I. 11), art. 67, Sch. 8 para. 6; S.R. 2000/133, art. 2(3)(a), Sch. Pt. I

X149. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

X250. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

51 Category B retirement pension for widowers.N.I.

(1)A man shall be entitled to a Category B retirement pension if—

(a)he has had a wife and she has died on or after 6th April 1979, and he was married to her when she died; and

(b)they were both over pensionable age when she died; and

(c)before her death she satisfied the contribution conditions for a Category A retirement pension in Schedule 3, Part I, paragraph 5.

(2)The weekly rate of a man’s Category B retirement pension under this section shall, subject to subsection (3) below, be determined in accordance with the provisions of [F265sections 44 to [F26645]] above [F267and Schedule 4A to this Act] as they apply in the case of a Category A retirement pension, taking references in those sections to the pensioner as references to the wife.

(3)In the case of a widower whose wife dies after [F2685th October 2002], the additional pension falling to be calculated under [F265sections 44 to [F26645]] above [F267and Schedule 4A to this Act] by virtue of subsection (2) above shall be one half of the amount which it would be apart from this subsection.

(4)Subject to the provisions of this Act, a man shall become entitled to a Category B retirement pension on the day on which the conditions of entitlement become satisfied in his case and his entitlement shall continue throughout his life.

Textual Amendments

F265Words in s. 51(2)(3) substituted (16.12.1995 subject to Sch. 2 of the amending S.I.) by S.I. 1995/3213 (N.I. 22), arts. 1(3), 124(2)-(5)

F267Words in s. 51(2)(3) inserted (8.1.2001, 1.2.2001 for specified purposes and 6.4.2002 otherwise) by 2000 c. 4 (N.I.), s. 33(13); S.R. 2000/358, art. 2(e), Sch. Pt. IV (as amended by S.R. 2000/374, art. 3); S.R. 2001/34, art. 2(a)

F268Words in s. 51(3) substituted (retrospectively) by virtue of 2000 c. 4 (N.I.), s. 35(1)(a)(2)(b)

Modifications etc. (not altering text)

C44S. 51 restricted (16.12.1995 subject to Sch. 2 of the amending S.I.) by S.I. 1995/3213 (N.I. 22), arts. 1(3), 123, Sch. 2 Pt. II para. 3(3)

C45S. 51 modified (6.10.2002) by S.R. 2001/441, art. 2

[F26951A Special provision for married people.N.I.

(1)This section has effect where, apart from section 43(1) above, a married person would be entitled both—

(a)to a Category A retirement pension, and

(b)to a Category B retirement pension by virtue of the contributions of the other party to the marriage.

(2)If by reason of a deficiency of contributions the basic pension in the Category A retirement pension falls short of the weekly rate specified in Schedule 4, Part I, paragraph 5, that basic pension shall be increased by the lesser of—

(a)the amount of the shortfall, or

(b)the amount of the weekly rate of the Category B retirement pension.

(3)This section does not apply in any case where both parties to the marriage attained pensionable age before 6th April 1979.]

Textual Amendments

F269S. 51A inserted (16.12.1995 subject to Sch. 2 of the amending S.I.) by S.I. 1995/3213 (N.I. 22), arts. 1(3), 123, Sch. 2 Pt. III para. 18(6)

52 Special provision for surviving spouses.N.I.

(1)This section has effect where, apart from section 43(1) above, a person would be entitled both—

(a)to a Category A retirement pension; and

[F270(b)to a Category B retirement pension by virtue of the contributions of a spouse who has died.]

(2)If by reason of a deficiency of contributions the basic pension in the Category A retirement pension falls short of the full amount, that basic pension shall be increased by the lesser of—

(a)the amount of the shortfall, or

(b)the amount of the basic pension in the rate of the Category B retirement pension,

full amount”meaning for this purpose the sum specified in section 44(4) above as the weekly rate of the basic pension in a Category A retirement pension.

(3)If the additional pension in the Category A retirement pension falls short of the prescribed maximum, that additional pension shall be increased by the lesser of—

(a)the amount of the shortfall, or

(b)the amount of the additional pension in the Category B retirement pension.

(4)This section does not apply in any case where the death of the wife or husband, as the case may be, occurred before 6th April 1979 and the surviving spouse had attained pensionable age before that date.

Textual Amendments

F270S. 52(1)(b) substituted (16.12.1995 subject to Sch. 2 of the amending S.I.) by S.I. 1995/3213 (N.I. 22), arts. 1(3), 123, Sch. 2 Pt. III para. 18(7)

F27153. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .N.I.

Textual Amendments

F271S. 53 repealed (16.12.1995 subject to Sch. 2 of the amending S.I.) by virtue of S.I. 1995/3213 (N.I. 22), arts. 1(3), 123, 168, Sch. 2 Pt. III para. 18(6), Sch. 5 Pt. II

54 Category A and Category B retirement pensions: supplemental provisions.N.I.

(1)Regulations may provide that in the case of a person of any prescribed description who—

(a)has become entitled to a Category A or Category B retirement pension but is, in the case of a woman, under the age of 65 or, in the case of a man, under the age of 70; and

(b)elects in such manner and in accordance with such conditions as may be prescribed that the regulations shall apply in his case,

this Part of this Act shall have effect as if that person had not become entitled to such a retirement pension [F272or to a shared additional pension].

(2)Regulations under subsection (1) above may make such modifications of the provisions of this Part of this Act, or of those of [F273Chapter II of Part II of the Social Security (Northern Ireland) Order 1998] as those provisions apply in a case where a person makes an election under the regulations, as may appear to the Department necessary or expedient.

[F274(3)Where both parties to a marriage (call them “P” and “S”) have become entitled to retirement pensions and—

(a)P’s pension is Category A, and

(b)S’s pension is—

(i)Category B by virtue of P’s contributions, or

(ii)Category A with an increase under section 51A(2) above by virtue of P’s contributions,

P shall not be entitled to make an election in accordance with regulations made under subsection (1) above without S’s consent, unless that consent is unreasonably withheld.]

F275(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F274S. 54(3) substituted (16.12.1995 subject to Sch. 2 of the amending S.I.) by S.I. 1995/3213 (N.I. 22), arts. 1(3), 123, Sch. 2 Pt. II para. 18(8)

F275S. 54(4) repealed (16.12.1995 subject to Sch. 2 of the amending S.I.) by virtue of S.I. 1995/3213 (N.I. 22), arts. 1(3), 131(2), 168, Sch. 5 Pt. II

[F27655 Increase of retirement pension where entitlement is deferred.N.I.

(1)Where a person’s entitlement to a Category A or Category B retirement pension is deferred, Schedule 5 to this Act shall have effect for increasing the rate of pension.

(2)For the purposes of this Act a person’s entitlement to a Category A or Category B retirement pension is deferred if and so long as that person—

(a)does not become entitled to that pension by reason only—

(i)of not satisfying the conditions of section 1 of the Administration Act (entitlement to benefit dependent on claim), or

(ii)in the case of a Category B retirement pension payable by virtue of a spouse’s contributions, of the spouse not satisfying those conditions with respect to his Category A retirement pension; or

(b)in consequence of an election under section 54(1) above, falls to be treated as not having become entitled to that pension;

and, in relation to any such pension, “period of deferment” shall be construed accordingly.]

Textual Amendments

F276S. 55 substituted (16.12.1995 subject to Sch. 2 of the amending S.I.) by S.I. 1995/3213 (N.I. 22), arts. 1(3), 131(3)

[F277Shared additional pension]N.I.

Textual Amendments

F277Cross-heading and ss. 55A-55C inserted (1.12.2000) by S.I. 1999/3147, art. 47(1), Sch. 6 para. 3; S.R. 2000/133, art. 2(3), Sch. Pt. IV

[F27855A Shared additional pension.N.I.

(1)A person shall be entitled to a shared additional pension if he is—

(a)over pensionable age, and

(b)entitled to a state scheme pension credit.

(2)A person’s entitlement to a shared additional pension shall continue throughout his life.

(3)The weekly rate of a shared additional pension shall be the appropriate weekly amount, unless the pensioner’s entitlement to the state scheme pension credit arose before the final relevant year, in which case it shall be that amount multiplied by the relevant revaluation percentage.

(4)The appropriate weekly amount for the purposes of subsection (3) above is the weekly rate, expressed in terms of the valuation day, at which the cash equivalent, on that day, of the pensioner’s entitlement, or prospective entitlement, to the shared additional pension is equal to the state scheme pension credit.

(5)The relevant revaluation percentage for the purposes of that subsection is the percentage specified, in relation to earnings factors for the tax year in which the entitlement to the state scheme pension credit arose, by the last order under section 130 of the Administration Act to come into operation before the end of the final relevant year.

[F279(6)The Department may by regulations make provision for the calculation and verification of cash equivalents for the purposes of this section.

(6A)The power conferred by subsection (6) above includes power to provide—

(a)for calculation or verification in such manner as may be approved by or on behalf of the Government Actuary, and

(b)for things done under the regulations to be required to be done in accordance with guidance from time to time prepared by a person prescribed by the regulations.]

(7)In this section—

  • “final relevant year” means the tax year immediately preceding that in which the pensioner attains pensionable age;

  • “state scheme pension credit” means a credit under Article 46(1)(b) of the Welfare Reform and Pensions (Northern Ireland) Order 1999 (credit for the purposes of this Part of this Act);

  • “valuation day” means the day on which the pensioner becomes entitled to the state scheme pension credit.]

Textual Amendments

F279S. 55A(6)(6A) substituted for s. 55A(6) (22.11.2000) by 2000 c. 4 (N.I.), s. 37(3); S.R. 2000/358, art. 2(a), Sch. Pt. I

Modifications etc. (not altering text)

C46S. 55A modified (with effect in accordance with art. 6 of the amending Rule) by The Social Security Benefits Up-rating Order (Northern Ireland) 2003 (S.R. 2003/155), arts. 1(1)(d), 4(5)

C47S. 55A amended (8.4.2002 with effect as mentioned in art. 6 of the amending S.R.) by The Social Security Benefits Up-rating Order (Northern Ireland) 2002 (S.R. 2002/99), arts. 1(1)(d)(2), 4(5)

[F28055B Reduction of shared additional pension: pension sharing.N.I.

(1)The weekly rate of a shared additional pension shall be reduced as follows in any case where—

(a)the pensioner has become subject to a state scheme pension debit, and

(b)the debit is to any extent referable to the pension.

(2)If the pensioner became subject to the debit in or after the final relevant year, the weekly rate of the pension shall be reduced by the appropriate weekly amount.

(3)If the pensioner became subject to the debit before the final relevant year, the weekly rate of the additional pension shall be reduced by the appropriate weekly amount multiplied by the relevant revaluation percentage.

(4)The appropriate weekly amount for the purposes of subsections (2) and (3) above is the weekly rate, expressed in terms of the valuation day, at which the cash equivalent, on that day, of the pension mentioned in subsection (5) below is equal to so much of the debit as is referable to the shared additional pension.

(5)The pension referred to above is a notional pension for the pensioner by virtue of section 55A above which becomes payable on the later of—

(a)his attaining pensionable age, and

(b)the valuation day.

(6)For the purposes of subsection (3) above, the relevant revaluation percentage is the percentage specified, in relation to earnings factors for the tax year in which the pensioner became subject to the debit, by the last order under section 130 of the Administration Act to come into operation before the end of the final relevant year.

[F281(7)The Department may by regulations make provision for the calculation and verification of cash equivalents for the purposes of this section.

(7A)The power conferred by subsection (7) above includes power to provide—

(a)for calculation or verification in such manner as may be approved by or on behalf of the Government Actuary, and

(b)for things done under the regulations to be required to be done in accordance with guidance from time to time prepared by a person prescribed by the regulations.]

(8)In this section—

  • “final relevant year” means the tax year immediately preceding that in which the pensioner attains pensionable age;

  • “state scheme pension debit”, means a debit under Article 46(1)(a) of the Welfare Reform and Pensions (Northern Ireland) Order 1999 (debit for the purposes of this Part of this Act);

  • “valuation day” means the day on which the pensioner became subject to the state scheme pension debit.]

[F28255C Increase of shared additional pension where entitlement is deferred.N.I.

(1)For the purposes of this section, a person’s entitlement to a shared additional pension is deferred—

(a)where he would be entitled to a Category A or Category B retirement pension but for the fact that his entitlement to such a pension is deferred, if and so long as his entitlement to such a pension is deferred, and

(b)otherwise, if and so long as he does not become entitled to the shared additional pension by reason only of not satisfying the conditions of section 1 of the Administration Act (entitlement to benefit dependent on claim),

and, in relation to a shared additional pension, “period of deferment” shall be construed accordingly.

(2)Where a person’s entitlement to a shared additional pension is deferred, the rate of his shared additional pension shall be increased by an amount equal to the aggregate of the increments to which he is entitled under subsection (3) below, but only if that amount is enough to increase the rate of the pension by at least one per cent.

(3)A person is entitled to an increment under this subsection for each complete incremental period in his period of enhancement.

(4)The amount of the increment for an incremental period shall be 1/7th per cent. of the weekly rate of the shared additional pension to which the person would have been entitled for the period if his entitlement had not been deferred.

(5)Amounts under subsection (4) above shall be rounded to the nearest penny, taking any 1/2p as nearest to the next whole penny.

(6)Where an amount under subsection (4) above would, apart from this subsection, be a sum less than 1/2p, the amount shall be taken to be zero, notwithstanding any other provision of this Act, the Pensions (Northern Ireland) Order 1995 or the Administration Act.

(7)Where one or more orders have come into operation under section 132 of the Administration Act during the period of enhancement, the rate for any incremental period shall be determined as if the order or orders had come into operation before the beginning of the period of enhancement.

(8)The sums which are the increases in the rates of shared additional pensions under this section are subject to alteration by order made by the Department under section 132 of the Administration Act.

(9)In this section—

  • “incremental period” means any period of six days which are treated by regulations as days of increment for the purposes of this section in relation to the person and pension in question; and

  • “period of enhancement”, in relation to that person and that pension, means the period which—

    (a)

    begins on the same day as the period of deferment in question, and

    (b)

    ends on the same day as that period or, if earlier, on the day before the 5th anniversary of the beginning of that period.]

Textual Amendments

Modifications etc. (not altering text)

C48S. 55C modified (with effect in accordance with art. 6 of the amending Rule) by The Social Security Benefits Up-rating Order (Northern Ireland) 2003 (S.R. 2003/155), arts. 1(1)(d), 4(5)

C49S. 55C modified (1.12.2000 with effect in relation to incremental periods beginning on or after 6.4.2010) by S.I. 1999/3147 (N.I. 11), art. 47(2); S.R. 2000/133, art. 2(3), Sch. Pt. IV

C50S. 55C amended (8.4.2002 with effect as mentioned in art. 6 of the amending S.R.) by The Social Security Benefits Up-rating Order (Northern Ireland) 2002 (S.R. 2002/99), arts. 1(1)(d)(2), 4(5)

Child’s special allowanceN.I.

56 Child’s special allowance - existing beneficiaries.N.I.

(1)Subject to the provisions of this ActF283..., a woman whose marriage has been terminated by divorce shall be entitled to a child’s special allowance at the weekly rate specified in Schedule 4, Part I, paragraph 6, if—

(a)the husband of that marriage is dead and satisfied the contribution condition for a child’s special allowance specified in Schedule 3, Part I, paragraph 6; and

(b)she is entitled to child benefit in respect of a child and either—

(i)she was so entitled immediately before that husband’s death; or

(ii)in such circumstances as may be prescribed, he was then so entitled; and

(c)either—

(i)that husband had before his death been contributing at not less than the prescribed weekly rate to the cost of providing for that child; or

(ii)at the date of that husband’s death she was entitled, under an order of a court, trust or agreement which she has taken reasonable steps to enforce, to receive (whether from that husband or from another person) payments in respect of that child at not less than that rate provided or procured by that husband.

(2)A child’s special allowance shall not be payable to a woman—

(a)for any period after her remarriage; or

(b)for any period during which she and a man to whom she is not married are living together as husband and wife.

(3)Where, apart from this subsection, a person is entitled to receive, in respect of a particular child, payment of an amount by way of a child’s special allowance, that amount shall not be payable unless one of the conditions specified in subsection (4) below is satisfied.

(4)Those conditions are—

(a)that the beneficiary would be treated for the purposes of Part IX of this Act as having the child living with him; or

(b)that the requisite contributions are being made to the cost of providing for the child.

(5)The condition specified in subsection (4)(b) above is to be treated as satisfied if, but only if—

(a)such contributions are being made at a weekly rate not less than the amount referred to in subsection (3) above—

(i)by the beneficiary; or

(ii)where the beneficiary is one of two spouses residing together, by them together; and

(b)except in prescribed cases, the contributions are over and above those required for the purpose of satisfying section 139(1)(b) below.

(6)A child’s special allowance shall not be payable for any period after 5th April 1987 except to a woman who immediately before 6th April 1987—

(a)satisfied the conditions set out in paragraphs (a) to (c) of subsection (1) above; and

(b)was not barred from payment of the allowance for either of the reasons mentioned in subsection (2) above,

and who has so continued since 6th April 1987.

Textual Amendments

F283Words in s. 56(1) repealed (6.4.2003) by Tax Credits Act 2002 (c. 21), s. 61, Sch. 6; S.I. 2003/962, art. 2(3)(e), Sch. 1

Provisions relating to unemployment benefit, sickness benefit and invalidity benefitN.I.

F28457. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .N.I.

F28558. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .N.I.

Invalidity benefit - disqualifications, etc.N.I.

F28659. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .N.I.

Partial satisfaction of contribution conditionsN.I.

60 Partial satisfaction of contribution conditions.N.I.

(1)Subject to the provisions of this section, regulations may provide for persons to be entitled to any of the following benefits, namely—

(a)a widowed mother’s allowance,

[F287(aa)a widowed parent’s allowance,

(ab)a bereavement allowance,]

(b)a widow’s pension,

(c)a Category A retirement pension,

(d)a Category B retirement pension,

in cases where the first contribution condition specified in relation to that benefit in paragraph 5 of Schedule 3 to this Act is satisfied and the second contribution condition so specified is not.

(2)Subject to subsection (8) below, in any case where—

(a)an employed earner who is married dies as a result of—

(i)a personal injury of a kind mentioned in section 94(1) below, or

(ii)a disease or injury such as is mentioned in section 108(1) below, and

(b)the contribution conditions are not wholly satisfied in respect of [F288the employed earner],

those conditions shall be taken to be satisfied for the purposes of [F289the entitlement of the employed earner’s widow or widower] to any of the benefits specified in subsection (3) below.

(3)The benefits referred to in subsection (2) above are the following—

[F290(a)a bereavement payment;]

(b)a widowed mother’s allowance;

[F291(ba)a widowed parent’s allowance,

(bb)a bereavement allowance,]

(c)a widow’s pension;

[F292(d)a Category B retirement pension payable by virtue of section 48B [F293or 48BB] above.]

(4)Subject to [F294subsection (7)] below, regulations under subsection (1) above shall provide for benefit payable by virtue of any such regulations to be payable at a rate, or to be of an amount, less than that which would be applicable under this Part of this Act had both of the relevant contribution conditions been fully satisfied.

(5)Subject to [F294subsection (7)] below, the rate or amount prescribed by regulations under subsection (1) above may vary with the extent to which the relevant contribution conditions are satisfied (and may be nil).

F295(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7)Regulations may provide that where—

(a)a person is entitled by virtue of subsection (1) above to a Category A or Category B retirement pension consisting only of the additional pension with no basic pension, and

(b)that retirement pension, and any graduated retirement benefit to which he may be entitled, together amount to less than the prescribed rate,

that person’s entitlement as respects that retirement pension shall be satisfied either altogether or for a prescribed period by the making of a single payment of the prescribed amount.

(8)Subsection (2) above only has effect where the employed earner’s death occurred on or after 11th April 1988.

Textual Amendments

F287S. 60(1)(aa)(ab) inserted (24.4.2000 for specified purposes and 9.4.2001 otherwise) by S.I. 1999/3147 (N.I. 11), art. 67, Sch. 8 para. 7(2); S.R. 2000/133, art. 2(3)(a), Sch. Pt. I

F288Words in s. 60(2)(b) substituted (16.12.1995 subject to Sch. 2 of the amending S.I.) by S.I. 1995/3213 (N.I. 22), arts. 1(3), 123, Sch. 2 Pt. III para. 18(9)(a)

F289Words in s. 60(2) substituted (16.12.1995 subject to Sch. 2 of the amending S.I.) by S.I. 1995/3213 (N.I. 22), arts. 1(3), 123, Sch. 2 Pt. III para. 18(9)(a)

F290S. 60(3)(a) substituted (24.4.2000 for specified purposes and 9.4.2001 otherwise) by S.I. 1999/3147 (N.I. 11), art. 67, Sch. 8 para. 7(3)(a); S.R. 2000/133, art. 2(3)(a), Sch. Pt. I

F291S. 60(3)(ba)(bb) inserted (24.4.2000 for specified purposes and 9.4.2001 otherwise) by S.I. 1999/3147 (N.I. 11), art. 67, Sch. 8 para. 7(3)(b); S.R. 2000/133, art. 2(3)(a), Sch. Pt. I

F292S. 60(3)(d) substituted (16.12.1995 subject to Sch. 2 of the amending S.I.) by S.I. 1995/3213 (N.I. 22), arts. 1(3), 123, Sch. 2 Pt. III para. 18(9)(b)

F293Words in s. 60(3)(d) inserted (24.4.2000 for specified purposes and 9.4.2001 otherwise) by S.I. 1999/3147 (N.I. 11), art. 67, Sch. 8 para. 7(3)(c); S.R. 2000/133, art. 2(3)(a), Sch. Pt. I

61 Exclusion of increase of benefit for failure to satisfy contribution condition.N.I.

(1)A Category A or Category B retirement pension which is payable by virtue of section 60(1) above and a widowed mother’s allowance [F296or widowed parent’s allowance] which is so payable shall not be increased under section 47(1) above or under Part IV below F297... if the pension or allowance contains no basic pension in consequence of a failure to satisfy a contribution condition.

[F298(2)Where a person is entitled to short-term incapacity benefit at a rate determined under section 30B(3) above and the retirement pension by reference to which the rate of the benefit is determined—

(a)would have been payable only by virtue of section 60 above, and

(b)would, in consequence of a failure to satisfy a contribution condition, have contained no basic pension,

the benefit shall not be increased under section 47(1) above or under Part IV belowF297....]

Textual Amendments

F296Words in s. 61(1) inserted (24.4.2000 for specified purposes and 9.4.2001 otherwise) by S.I. 1999/3147 (N.I. 11), art. 67, Sch. 8 para. 8; S.R. 2000/133, art. 2(3)(a), Sch. Pt. I

F297Words in s. 61(1)(2) repealed (6.4.2003) by Tax Credits Act 2002 (c. 21), s. 61, Sch. 6; S.I. 2003/962, art. 2(3)(e), Sch. 1

Modifications etc. (not altering text)

C51S. 61 modified (13.4.1995) by S.R. 1995/35, reg. 23

[F29961A Contributions paid in error.N.I.

(1)This section applies in the case of any individual if—

(a)the individual has paid amounts by way of primary Class 1 contributions which, because the individual was not an employed earner, were paid in error, and

(b)prescribed conditions are satisfied.

(2)Regulations may, where—

(a)this section applies in the case of any individual, and

(b)the [F300Inland Revenue are] of the opinion that it is appropriate for the regulations to apply to the individual,

provide for entitlement to, and the amount of, additional pension to be determined as if the individual had been an employed earner and, accordingly, those contributions had been properly paid.

(3)The reference in subsection (2) above to additional pension is to additional pension for the individual or the individual’s spouse falling to be calculated under section 45 above for the purposes of—

(a)Category A retirement pension,

(b)Category B retirement pension for widows or widowers [F301(payment by virtue of section 48B or 48BB above)],

(c)widowed mother’s allowance and widow’s pension,

[F302(ca)widowed parent’s allowance,] and

(d)incapacity benefit (except in transitional cases).

(4)Regulations may, where—

(a)this section applies in the case of any individual, and

(b)the [F300Inland Revenue are] of the opinion that it is appropriate for regulations made by virtue of Article 6(8) of the Social Security (Incapacity for Work) (Northern Ireland) Order 1994 (provision during transition from invalidity benefit to incapacity benefit for incapacity benefit to include the additional pension element of invalidity pension) to have the following effect in the case of the individual,

provide for the regulations made by virtue of that Article to have effect as if, in relation to the provisions in force before the commencement of that Article with respect to that additional pension element, the individual had been an employed earner and, accordingly, the contributions had been properly paid.

(5)Where such provision made by regulations as is mentioned in subsection (2) or (4) above applies in respect of any individual, regulations under paragraph 8(1)(m) of Schedule 1 to this Act may not require the amounts paid by way of primary Class 1 contributions to be repaid.

(6)Regulations may provide, where—

(a)such provision made by regulations as is mentioned in subsection (2) or (4) above applies in respect of any individual,

(b)prescribed conditions are satisfied, and

(c)the amount calculated by reference to the contributions in question has been paid in respect of that individual by way of minimum contributions under section 39 of the Pensions Act (contributions to personal pension schemes),

for that individual to be treated for the purposes of that Act as if that individual had been an employed earner and, accordingly, the amount had been properly paid.]

Textual Amendments

F299S. 61A inserted (16.12.1995 subject to Sch. 2 of the amending S.I.) by S.I. 1995/3213 (N.I. 22), arts. 1(3), 130

F300Words in s. 61A(2)(b)(4)(b) substituted (24.3.1999 for specified purposes and 1.4.1999 otherwise) by S.I. 1999/671, arts. 1(2)(b), 3(1), Sch. 1 para. 9 (with savings and transitional provisions in Sch. 7); S.R. 1999/149, art. 2(c), Sch. 2 (subject to arts. 3-6)

F301Words in s. 61A(3)(b) inserted (24.4.2000 for specified purposes and 9.4.2001 otherwise) by S.I. 1999/3147 (N.I. 11), art. 67, Sch. 8 para. 9(a); S.R. 2000/133, art. 2(3)(a), Sch. Pt. I

F302S. 61A(3)(ca) inserted (24.4.2000 for specified purposes and 9.4.2001 otherwise) by S.I. 1999/3147 (N.I. 11), art. 67, Sch. 8 para. 9(b); S.R. 2000/133, art. 2(3)(a), Sch. Pt. I

Graduated retirement benefitN.I.

62 Graduated retirement benefit.N.I.

(1)So long as sections 35 and 36 of the M8National Insurance Act (Northern Ireland) 1966 (graduated retirement benefit) continue in force by virtue of regulations made under Schedule 3 to the M9Social Security (Consequential Provisions) Act 1975 or under Schedule 3 to the Consequential Provisions Act, regulations may make provision—

(a)for [F303amending section 35(2) of the National Insurance Act (Northern Ireland) 1966 (value of unit of graduated contributions) so that the value is the same for women as it is for men for replacing section 35(4) of that Act] (increase of graduated retirement benefit in cases of deferred retirement) with provisions corresponding to those of paragraphs 1 to 3 of Schedule 5 to this Act;

[F304(aa)for amending section 35(7) of that Act (persons to be treated as receiving nominal retirement pension) so that where a person has claimed a Category A or Category B retirement pension but—

(i)because of an election under section 54(1) above, or

(ii)because he has withdrawn his claim for the pension,

he is not entitled to such a pension, he is not to be treated for the purposes of the preceding provisions of that section as receiving such a pension at a nominal weekly rate;]

(b)for extending section 36 of that Act (increase of woman’s retirement pension by reference to her late husband’s graduated retirement benefit) to men and their late wives [F305and for that section (except subsection (5) so to apply as it applies to women and their late husbands].

(2)This section is without prejudice to any power to modify those sections conferred by Schedule 3 to the Consequential Provisions Act.

Textual Amendments

F303Words in s. 62(1)(a) substituted (16.12.1995 subject to Sch. 2 of the amending S.I.) by S.I. 1995/3213 (N.I. 22), arts. 1(3), 123, Sch. 2 Pt. II para. 7(a)

F304S. 62(1)(aa) inserted (16.12.1995 subject to Sch. 2 of the amending S.I.) by S.I. 1995/3213 (N.I. 22), arts. 1(3), 128

F305Words in s. 62(1)(b) added (16.12.1995 subject to Sch. 2 of the amending S.I.) by S.I. 1995/3213 (N.I. 22), arts. 1(3), 123, Sch. 2 Pt. II para. 7(b)

Marginal Citations

Part IIIN.I. Non-Contributory Benefits

Modifications etc. (not altering text)

C52Pt. III (ss. 63-79) excluded (13.1.1993) by S.R. 1979/242, reg. 4(1) (as substituted (13.1.1993) by S.R. 1992/557, reg. 3).

63 Descriptions of non-contributory benefits.N.I.

Non-contributory benefits under this Part of this Act are of the following descriptions, namely—

(a)attendance allowance;

F306(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c)[F307carer’s allowance](with increase for adult F308... dependants);

(d)disability living allowance;

(e)guardian’s allowance;

(f)retirement pensions of the following categories—

(i)Category C, payable to certain persons who were over pensionable age on 5th July 1948 and their wives and widows (with increase for adult F309... dependants), and

(ii)Category D, payable to persons over the age of 80;

(g)age addition payable, in the case of persons over the age of 80, by way of increase of a retirement pension of any category or of a pension or allowance to which section 79(2) below applies.

Textual Amendments

F306S. 63(b) repealed (3.11.2000 for specified purposes and 6.4.2001 otherwise) by S.I. 1999/3147 (N.I. 11), art. 76, Sch. 10 Pt. IV; S.R. 2000/332, art. 2(3)(g)(4)(5)

F307Words in s. 63(c) substituted (21.10.2002 for certain purposes and 1.4.2003 otherwise) by The Deregulation (Carer's Allowance) Order (Northern Ireland) 2002 (S.R. 2002/321), arts. 1, 2(2)(a)(ii)

Attendance allowanceN.I.

64 Entitlement.N.I.

(1)A person shall be entitled to an attendance allowance if he is aged 65 or over, he is not entitled to the care component of a disability living allowance and he satisfies either—

(a)the condition specified in subsection (2) below (“the day attendance condition”), or

(b)the condition specified in subsection (3) below (“the night attendance condition”),

and prescribed conditions as to residence and presence in Northern Ireland.

(2)A person satisfies the day attendance condition if he is so severely disabled physically or mentally that, by day, he requires from another person either—

(a)frequent attention throughout the day in connection with his bodily functions, or

(b)continual supervision throughout the day in order to avoid substantial danger to himself or others.

(3)A person satisfies the night attendance condition if he is so severely disabled physically or mentally that, at night,—

(a)he requires from another person prolonged or repeated attention in connection with his bodily functions, or

(b)in order to avoid substantial danger to himself or others he requires another person to be awake for a prolonged period or at frequent intervals for the purpose of watching over him.

[F310(4)Circumstances may be prescribed in which a person is to be taken to satisfy or not to satisfy such of the conditions mentioned in subsections (2) and (3) above as may be prescribed.]

Textual Amendments

Modifications etc. (not altering text)

C54S. 64 modified (1.7.1992) by Social Security (Consequential Provisions) (Northern Ireland) Act 1992 c. 9, ss. 5, 7(2), Sch. 3 Pt. II para. 19.

65 Period and rate of allowance.N.I.

(1)Subject to the following provisions of this Act, the period for which a person is entitled to an attendance allowance shall be—

(a)a period throughout which he has satisfied or is likely to satisfy the day or the night attendance condition or both; and

(b)a period preceded immediately, or within such period as may be prescribed, by one of not less than 6 months throughout which he satisfied, or is likely to satisfy, one or both of those conditions.

(2)For the purposes of subsection (1) above a person who suffers from renal failure and is undergoing such form of treatment as may be prescribed shall, in such circumstances as may be prescribed, be deemed to satisfy or to be likely to satisfy the day or the night attendance condition or both.

(3)The weekly rate of the attendance allowance payable to a person for any period shall be the higher rate specified in Schedule 4, Part III, paragraph 1, if both as regards that period and as regards the period of 6 months mentioned in subsection (1)(b) above he has satisfied or is likely to satisfy both the day and the night attendance conditions, and shall be the lower rate in any other case.

(4)A person shall not be entitled to an attendance allowance for any period preceding the date on which he makes, or is treated as making, a claim for it.

(5)Notwithstanding anything in subsection (4) above, provision may be made by regulations for a person to be entitled to an attendance allowance for a period preceding the date on which he makes or is treated as making a claim for it if such an allowance has previously been paid to or in respect of him.

(6)Except in so far as regulations otherwise provide and subject to section 66(1) below—

(a)a claim for an attendance allowance may be made during the period of 6 months immediately preceding the period for which the person to whom the claim relates is entitled to the allowance; and

(b)an award may be made in pursuance of a claim so made, subject to the condition that, throughout that period of 6 months, that person satisfies—

(i)both the day and the night attendance conditions, or

(ii)if the award is at the lower rate, one of those conditions.

66 Attendance allowance for the terminally ill.N.I.

(1)If a terminally ill person makes a claim expressly on the ground that he is such a person, then—

(a)he shall be taken—

(i)to satisfy, or to be likely to satisfy, both the day attendance condition and the night attendance condition [F311for so much of the period for which he is terminally ill as does not fall before the date of the claim]; and

(ii)to have satisfied those conditions for the period of 6 months immediately preceding [F312the date of the claim or, if later, the first date on which he is terminally ill] (so however that no allowance shall be payable by virtue of this sub-paragraph for any period preceding that date); and

(b)the period for which he is entitled to attendance allowance shall be [F313so much of the period for which he is terminally ill as does not fall before the date of the claim].

(2)For the purposes of subsection (1) above—

(a)a person is “terminally ill” at any time if at that time he suffers from a progressive disease and his death in consequence of that disease can reasonably be expected within 6 months; and

(b)where a person purports to make a claim for an attendance allowance by virtue of that subsection on behalf of another, that other shall be regarded as making the claim, notwithstanding that it is made without his knowledge or authority.

67 Exclusions by regulation.N.I.

(1)Regulations may provide that, in such circumstances, and for such purposes as may be prescribed, a person who is, or is treated under the regulations as, undergoing treatment for renal failure in a hospital or other similar institution otherwise than as an in-patient shall be deemed not to satisfy or to be unlikely to satisfy the day attendance condition or the night attendance condition, or both of them.

(2)Regulations may provide that an attendance allowance shall not be payable in respect of a person for any period when he is a person for whom accommodation is provided—

(a)in pursuance of Article 5, 7, 15 or 36 of the M10Health and Personal Social Services (Northern Ireland) Order 1972 ;

(b)in circumstances in which the cost is, or may be, borne wholly or partly out of public or local funds, in pursuance of those enactments or of any other enactment relating to persons under disability.

Marginal Citations

Severe disablement allowanceN.I.

F31468. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .N.I.

Textual Amendments

F314S. 68 repealed (3.11.2000 for specified purposes and 6.4.2001 otherwise) by S.I. 1999/3147 (N.I. 11), art. 76, Sch. 10 Pt. IV; S.R. 2000/332, art. 2(3)(g)(4)(5)

F31569. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .N.I.

Textual Amendments

F315S. 69 repealed (3.11.2000 for specified purposes and 6.4.2001 otherwise) by S.I. 1999/3147 (N.I. 11), art. 76, Sch. 10 Pt. IV; S.R. 2000/332, art. 2(3)(g)(4)(5)

[F316Carer’s allowance]N.I.

Textual Amendments

F316Words in cross-heading preceding s. 70 substituted (21.10.2002 for certain purposes and 1.4.2003 otherwise) by The Deregulation (Carer's Allowance) Order (Northern Ireland) 2002 (S.R. 2002/321), arts. 1, 2(2)(a)(iii)

70[F317Carer’s allowance].N.I.

(1)A person shall be entitled to [F318a carer’s allowance] for any day on which he is engaged in caring for a severely disabled person if—

(a)he is regularly and substantially engaged in caring for that person;

(b)he is not gainfully employed; and

(c)the severely disabled person is either such relative of his as may be prescribed or a person of any such other description as may be prescribed.

[F319(1A)A person who was entitled to an allowance under this section immediately before the death of the severely disabled person referred to in subsection (1) above shall, notwithstanding that he is no longer engaged in caring for a severely disabled person and the requirements of paragraphs (a) and (c) of that subsection are no longer satisfied, continue to be entitled to it until –

(a)the end of the week in which he ceases to satisfy any other requirement as to entitlement to the allowance; or

(b)the expiry of the period of 8 weeks beginning with the Sunday following the death (or beginning with the date of death if the death occurred on a Sunday),

whichever first occurs.]

(2)In this section, “severely disabled person” means a person in respect of whom there is payable either an attendance allowance or a disability living allowance by virtue of entitlement to the care component at the highest or middle rate or such other payment out of public funds on account of his need for attendance as may be prescribed.

(3)A person shall not be entitled to an allowance under this section if he is under the age of 16 or receiving full-time education.

(4)A person shall not be entitled to an allowance under this section unless he satisfies prescribed conditions as to residence or presence in Northern Ireland.

(5)F320. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6)F320. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7)No person shall be entitled for the same day to more than one allowance under this section; and where, apart from this subsection, two or more persons would be entitled for the same day to such an allowance in respect of the same severely disabled person, one of them only shall be entitled and that shall be such one of them—

(a)as they may jointly elect in the prescribed manner, or

(b)as may, in default of such an election, be determined by the Department in its discretion.

(8)Regulations may prescribe the circumstances in which a person is or is not to be treated for the purposes of this section as engaged, or regularly and substantially engaged, in caring for a severely disabled person, as gainfully employed or as receiving full-time education.

(9)[F318A carer’s allowance] shall be payable at the weekly rate specified in Schedule 4, Part III, paragraph 4.

F321(10). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F317Words in shoulder heading preceding s. 70 substituted (21.10.2002 for certain purposes and 1.4.2003 otherwise) by The Deregulation (Carer's Allowance) Order (Northern Ireland) 2002 (S.R. 2002/321), arts. 1, 2(2)(a)(iii)

F318Words in s. 70(1)(9) substituted (21.10.2002 for certain purposes and 1.4.2003 otherwise) by The Deregulation (Carer's Allowance) Order (Northern Ireland) 2002 (S.R. 2002/321), arts. 1, 2(2)(a)(iii)

F321S. 70(10) omitted (28.10.1994) by virtue of S.R. 1994/370, regs. 1, 2(3)(c)

Disability living allowanceN.I.

71 Disability living allowance.N.I.

(1)Disability living allowance shall consist of a care component and a mobility component.

(2)A person’s entitlement to a disability living allowance may be an entitlement to either component or to both of them.

(3)A person may be awarded either component for a fixed period or [F322for an indefinite period], but if his award of a disability living allowance consists of both components, he may not be awarded the components for different fixed periods.

(4)The weekly rate of a person’s disability living allowance for a week for which he has only been awarded one component is the appropriate weekly rate for that component as determined in accordance with this Act or regulations under it.

(5)The weekly rate of a person’s disability living allowance for a week for which he has been awarded both components is the aggregate of the appropriate weekly rates for the two components as so determined.

(6)A person shall not be entitled to a disability living allowance unless he satisfies prescribed conditions as to residence and presence in Northern Ireland.

Textual Amendments

72 The care component.N.I.

(1)Subject to the provisions of this Act, a person shall be entitled to the care component of a disability living allowance for any period throughout which—

(a)he is so severely disabled physically or mentally that—

(i)he requires in connection with his bodily functions attention from another person for a significant portion of the day (whether during a single period or a number of periods); or

(ii)he cannot prepare a cooked main meal for himself if he has the ingredients;

(b)he is so severely disabled physically or mentally that, by day, he requires from another person—

(i)frequent attention throughout the day in connection with his bodily functions; or

(ii)continual supervision throughout the day in order to avoid substantial danger to himself or others; or

(c)he is so severely disabled physically or mentally that, at night,—

(i)he requires from another person prolonged or repeated attention in connection with his bodily functions; or

(ii)in order to avoid substantial danger to himself or others he requires another person to be awake for a prolonged period or at frequent intervals for the purpose of watching over him.

(2)Subject to the following provisions of this section, a person shall not be entitled to the care component of a disability living allowance unless—

(a)throughout—

(i)the period of 3 months immediately preceding the date on which the award of that component would begin; or

(ii)such other period of 3 months as may be prescribed,

he has satisfied or is likely to satisfy one or other of the conditions mentioned in subsection (1)(a) to (c) above; and

(b)he is likely to continue to satisfy one or other of those conditions throughout—

(i)the period of 6 months beginning with that date; or

(ii)(if his death is expected within the period of 6 months beginning with that date) the period so beginning and ending with his death.

(3)Three weekly rates of the care component shall be prescribed.

(4)The weekly rate of the care component payable to a person for each week in the period for which he is awarded that component shall be—

(a)the highest rate, if he falls within subsection (2) above by virtue of having satisfied or being likely to satisfy both the conditions mentioned in subsection (1)(b) and (c) above throughout both the period mentioned in paragraph (a) of subsection (2) above and that mentioned in paragraph (b) of that subsection;

(b)the middle rate, if he falls within that subsection by virtue of having satisfied or being likely to satisfy one or other of those conditions throughout both those periods; and

(c)the lowest rate in any other case.

(5)For the purposes of this section, a person who is terminally ill, as defined in section 66(2) above, and makes a claim expressly on the ground that he is such a person, shall be taken—

(a)to have satisfied the conditions mentioned in subsection (1)(b) and (c) above for the period of 3 months immediately preceding the date of the claim, or, if later, the first date on which he is terminally ill (so however that the care component shall not be payable by virtue of this paragraph for any period preceding that date); and

(b)to satisfy or to be likely to satisfy those conditions [F323for so much of the period for which he is terminally ill as does not fall before the date of the claim].

(6)For the purposes of this section in its application to a person for any period in which he is under the age of 16—

(a)sub-paragraph (ii) of subsection (1)(a) above shall be omitted; and

(b)neither the condition mentioned in sub-paragraph (i) of that paragraph nor any of the conditions mentioned in subsection (1)(b) and (c) above shall be taken to be satisfied unless—

(i)he has requirements of a description mentioned in subsection (1)(a), (b) or (c) above substantially in excess of the normal requirements of persons of his age; or

(ii)he has substantial requirements of any such description which younger persons in normal physical and mental health may also have but which persons of his age and in normal physical and mental health would not have.

(7)Subject to subsections (5) and (6) above, circumstances may be prescribed in which a person is to be taken to satisfy or not to satisfy such of the conditions mentioned in subsection (1)(a) to (c) above as may be prescribed.

(8)Regulations may provide that a person shall not be paid any amount in respect of a disability living allowance which is attributable to entitlement to the care component for a period when he is a person for whom accommodation is provided—

(a)in pursuance of Article 5, 7, 15 or 36 of the M11Health and Personal Social Services (Northern Ireland) Order 1972; or

(b)in circumstances in which the cost is, or may be, borne wholly or partly out of public or local funds, in pursuance of those enactments or of any other enactment relating to persons under disability or to young persons or to education or training.

Textual Amendments

Marginal Citations

73 The mobility component.N.I.

(1)Subject to the provisions of this Act, a person shall be entitled to the mobility component of a disability living allowance for any period in which he is over [F324the relevant age] and throughout which—

(a)he is suffering from physical disablement such that he is either unable to walk or virtually unable to do so;

(b)he falls within subsection (2) below;

(c)he falls within subsection (3) below; or

(d)he is able to walk but is so severely disabled physically or mentally that, disregarding any ability he may have to use routes which are familiar to him on his own, he cannot take advantage of the faculty out of doors without guidance or supervision from another person most of the time.

[F325(1A)In subsection (1) above “the relevant age” means—

(a)in relation to the conditions mentioned in paragraph (a),

(b)or (c) of that subsection, the age of 3;

(b)in relation to the conditions mentioned in paragraph (d) of that subsection, the age of 5.