PART 2SOCIAL SECURITY BENEFITS AND PENSIONS

Rates or amounts of certain benefits under the Contributions and Benefits Act3.

(1)

From and including the respective dates specified in article 6—

(a)

the sums specified in paragraph (2) shall be increased; and

(b)

the sums specified in paragraph 3(a) and (b) of Part III of Schedule 4 to the Contributions and Benefits Act (age related addition – higher and middle rates) shall be reduced20,

so that Schedule 4 to the Contributions and Benefits Act (contributory periodical benefits, non-contributory periodical benefits, increases for dependants and rates of industrial injuries benefit), except paragraph 5 of Part III of that Schedule (guardian’s allowance), has effect as set out in Schedule 1 to this Order.

(2)

The sums mentioned in paragraph (1) are the sums specified in Parts I, III, IV and V of Schedule 4 to the Contributions and Benefits Act except, in—

(a)

Part III, the sums specified for age related addition (higher and middle rates) and age addition to a pension of any category and otherwise under section 79 of that Act;

(b)

Part IV, the sums specified in column (2) (increase for qualifying child); and

(c)

Part V, the sums specified for the increase in disablement pension for dependent children, widow’s pension (initial rate) and death benefit allowance in respect of children and qualifying young persons21.

Increase in rates or amounts of certain pensions and allowances under the Contributions and Benefits Act4.

(1)

The sums specified in paragraphs (2) to (5) shall be increased from and including the respective dates specified in article 6.

(2)

The sums falling to be calculated under paragraph 13(4) of Schedule 7 to the Contributions and Benefits Act (calculation of weekly rate of a beneficiary’s retirement allowance) shall be increased by 3.1 per cent.

(3)

In section 44(4) of the Contributions and Benefits Act22 (basic pension in a Category A retirement pension)—

(a)

for “£87.75” substitute “£90.45”; and

(b)

for “£97.65” substitute “£102.15”.

(4)

It is directed23 that the sums which are—

(a)

additional pensions in long-term benefits calculated by reference to any final relevant year earlier than the tax year 2010-2011;

(b)

increases in the rates of retirement pensions under Schedule 5 to the Contributions and Benefits Act24 (pension increase or lump sum where entitlement to retirement pension is deferred);

(c)

lump sums to which surviving spouses or civil partners will become entitled under paragraph 7A of that Schedule25 on becoming entitled to a Category A or Category B retirement pension (entitlement to lump sum where pensioner’s deceased spouse or civil partner has deferred entitlement); and

(d)

payable to a pensioner as part of their Category A or Category B retirement pension by virtue of an order made under section 126A of the Social Security Act 197526, section 63 of the Social Security Act 198627 or section 150(1)(e) of the Administration Act,

shall in each case be increased by 3.1 per cent.

(5)

The sums which, under—

(a)

section 55A of the Contributions and Benefits Act28, are shared additional pensions; and

(b)

paragraph 2 of Schedule 5A to the Contributions and Benefits Act29, are increases in the rates of such pensions,

shall in each case be increased by 3.1 per cent.

Increase in rates or amount of certain benefits under the Pension Schemes Act5.

(1)

It is directed30 that the sums specified in paragraph (2) shall be increased from and including the respective dates specified in article 6.

(2)

Sums which are payable by virtue of section 15(1) of the Pension Schemes Act (which provides for increases in a person’s guaranteed minimum pension if payment of their occupational pension is postponed after they attain pensionable age) to a person who is also entitled to a Category A or Category B retirement pension (including sums payable by virtue of section 17(2)31 and (3) of that Act), shall be increased by—

(a)

3.1 per cent. where the increase under section 15(1) is attributable to earnings factors for the tax year 1987-88 and earlier tax years32; and

(b)

0.1 per cent. where the increase under section 15(1) is attributable to earnings factors for the tax years 1988-89 to 1996-97 inclusive.

Dates on which sums specified for rates or amounts of benefits under the Contributions and Benefits Act or the Pension Schemes Act are changed by this Order6.

(1)

Paragraphs (2) to (9), which are subject to the provisions of paragraph (10), specify the date on which the changes made by this Order in the sums specified for rates or amounts of benefit under the Contributions and Benefits Act or the Pension Schemes Act shall take effect for each case.

(2)

Subject to paragraph (3), any increases in the sums mentioned in articles 3, 4 and 12 for Category A and Category B retirement pension and graduated retirement benefit together with, where appropriate, any increases for dependants, shall take effect on 11th April 2011.

(3)

In the case of a person over pensionable age—

(a)

whose entitlement to a Category A retirement pension is deferred; and

(b)

for whom the rate of short-term incapacity benefit falls to be calculated in accordance with section 30B(3) of the Contributions and Benefits Act33,

any increases in the sums mentioned in articles 3, 4 and 12 for Category A and Category B retirement pension and graduated retirement benefit together with, where appropriate, any increases for dependants, shall take effect on 14th April 2011.

(4)

The increases in the sums mentioned in articles 4(4)(d) and 5(2) shall take effect on 11th April 2011.

(5)

Any increases in the sums specified for—

(a)

the rate of—

(i)

Category C and Category D retirement pension,

(ii)

attendance allowance, and

(iii)

carer’s allowance (except in a case where the Secretary of State has made arrangements for it to be paid on a Wednesday); and

(b)

any increases in—

(i)

Category C retirement pension and carer’s allowance referred to in sub-paragraph (a)(i) and (iii), and

(ii)

widowed mother’s allowance and widowed parent’s allowance,

in respect of dependants,

shall in all cases take effect on 11th April 2011.

(6)

Any increases in the sums specified for—

(a)

the rate of—

(i)

carer’s allowance in a case where the Secretary of State has made arrangements for it to be paid on a Wednesday,

(ii)

disablement benefit,

(iii)

maximum disablement gratuity under paragraph 9(2) of Schedule 7 to the Contributions and Benefits Act,

(iv)

industrial death benefit by way of widow’s and widower’s pension and allowance in respect of children and qualifying young persons34,

(v)

the maximum of the aggregate of weekly benefit payable for successive accidents, under section 107(1) of the Contributions and Benefits Act; and

(b)

any increases in—

(i)

the benefits referred to in heads (i), (iii) and (iv) of sub-paragraph (a) in respect of dependants, and

(ii)

disablement pension,

shall in all cases take effect on 13th April 2011.

(7)

In any case where a person’s weekly rate of Category A or Category B retirement pension falls to be increased under the provisions of section 47(1) or 48C(2) of the Contributions and Benefits Act35 by reference to the weekly rate of invalidity allowance or age addition to long-term incapacity benefit to which he was previously entitled, any increase in such sum shall take effect on 11th April 2011.

(8)

The changes in the sums specified for the rate of incapacity benefit and severe disablement allowance together with, where appropriate, any increases for dependants, shall take effect in all cases on 14th April 2011.

(9)

The increases in the sums falling to be calculated in accordance with paragraph 13(4) of Schedule 7 to the Contributions and Benefits Act (retirement allowance) shall take effect on 13th April 2011.

(10)

Any increases in the sums specified in articles 3 and 24(c), in so far as those sums are relevant for the purposes of establishing whether the rate of any benefit is not to be increased in respect of an adult dependant because the earnings of the dependant exceed a specified amount36, shall take effect—

(a)

except in a case where sub-paragraph (b) applies, on the first day of the first benefit week to commence for the beneficiary on or after 11th April 2011;

(b)

in a case where regulation 7(b) of the Computation of Earnings Regulations (date on which earnings are treated as paid) applies, on the first day of the first benefit week to commence for the beneficiary on or after 1st April 2011,

and for the purpose of this paragraph, “benefit week” has the same meaning as in regulation 2(1) of the Computation of Earnings Regulations.

Increase in rates of certain compensation and industrial diseases benefits in respect of employment before 5th July 19487.

From and including—

(a)

13th April 2011, for “£53.90” referred to in paragraph 2(6)(c) of Schedule 8 to the Contributions and Benefits Act37 (maximum weekly rate of lesser incapacity allowance supplementing workmen’s compensation);

(b)

14th April 2011, for that sum referred to in paragraph 6(2)(b) of that Schedule38 (industrial diseases benefit schemes: weekly rate of allowance payable where disablement is not total),

substitute “£55.55”.

Earnings Limits8.

In section 80(4) of the Contributions and Benefits Act39 (earnings limits in respect of child dependency increases)—

(a)

for “£200.00”, in both places where it occurs, substitute “£205.00”; and

(b)

for “£26.00” substitute “£27.00”.

Statutory Sick Pay9.

In section 157(1) of the Contributions and Benefits Act40 (rate of payment of statutory sick pay) for “£79.15” substitute “£81.60”.

Statutory Maternity Pay10.

In regulation 6 of the Statutory Maternity Pay (General) Regulations 198641 (prescribed rate of statutory maternity pay) for “£124.88” substitute “£128.73”.

Ordinary and Additional Statutory Paternity Pay, and Statutory Adoption Pay11.

(1)

In the Statutory Paternity Pay and Statutory Adoption Pay (Weekly Rates) Regulations 200242—

(a)

in regulation 2(a) (weekly rate of payment of statutory paternity pay) for “£124.88” substitute “£128.73”; and

(b)

in regulation 3(a) (weekly rate of payment of statutory adoption pay) for “£124.88” substitute “£128.73”.

(2)

In regulation 2(a) of the Additional Statutory Paternity Pay (Weekly Rates) Regulations 201043 (weekly rate of payment of additional statutory paternity pay) for “£124.88” substitute “£128.73”.

Increase in rate of graduated retirement benefit12.

(1)

In section 36(1) of the National Insurance Act 196544 (graduated retirement benefit)—

(a)

the sum of 11.53 pence shall be increased by 3.1 per cent.; and

(b)

from and including 11th April 2011 the reference in that provision to that sum shall have effect as a reference to 11.89 pence.

(2)

The sums which are the increases of graduated retirement benefit under Schedule 2 to the Social Security (Graduated Retirement Benefit) (No. 2) Regulations 197845 (increases for deferred retirement) shall be increased by 3.1 per cent.

(3)

The sums which are lump sums to which surviving spouses or civil partners will become entitled under Schedule 1 to the Social Security (Graduated Retirement Benefit) Regulations 200546 (increases of graduated retirement benefit and lump sums) shall be increased by 3.1 per cent.

(4)

The sums which are the additions under section 37(1) of the National Insurance Act 1965 (additions for widows and widowers) shall be increased by 3.1 per cent.

Increase in rates of Disability Living Allowance13.

In regulation 4 of the Social Security (Disability Living Allowance) Regulations 199147 (rate of benefit)—

(a)

in paragraph (1)(a) for “£71.40” substitute “£73.60”;

(b)

in paragraph (1)(b) for “£47.80” substitute “£49.30”;

(c)

in paragraph (1)(c) for “£18.95” substitute “£19.55”;

(d)

in paragraph (2)(a) for “£49.85” substitute “£51.40”; and

(e)

in paragraph (2)(b) for “£18.95” substitute “£19.55”.

Rates of age addition14.

(1)

Subject to paragraph (2), in regulation 10(2) of the Social Security (Incapacity Benefit) Regulations 199448 (increase in rate of incapacity benefit where beneficiary is under prescribed age on the qualifying date)—

(a)

in sub-paragraph (a) for “£18.65” substitute “£19.25”; and

(b)

in sub-paragraph (b) for “£9.35” substitute “£9.65”.

(2)

In the case of a claimant entitled to long-term incapacity benefit, the sums specified in regulation 10(2)(a) and (b)49 shall be reduced to “£13.80” and “£5.60” respectively.

Rates of transitional invalidity allowance15.

(1)

Subject to paragraph (2), in regulation 18(2) of the Social Security (Incapacity Benefit) (Transitional) Regulations 199550 (rate of long-term incapacity benefit in transitional cases)—

(a)

in sub-paragraph (a) for “£18.65” substitute “£19.25”;

(b)

in sub-paragraph (b) for “£12.00” substitute “£12.40”; and

(c)

in sub-paragraph (c) for “£6.00” substitute “£6.20”.

(2)

In the case of a claimant entitled to long-term incapacity benefit—

(a)

the sums specified in regulation 18(2)(a) and (b)51 shall be reduced to “£13.80” and “£7.10” respectively; and

(b)

the sum specified in regulation 18(2)(c) shall be increased to “£5.60”.

Rates of bereavement benefits16.

In the Rate of Bereavement Benefits Regulations 201052—

(a)

in regulation 2 (rate of widowed mother’s allowance and widow’s pension) for “£97.65” substitute “£100.70”; and

(b)

in regulation 3 (rate of widowed parent’s allowance and bereavement allowance) for “£97.65” substitute “£100.70”.