2014 No. 367
Social Security

The Social Security Revaluation of Earnings Factors Order 2014

Made
Laid before Parliament
Coming into force
In accordance with section 148(2) (revaluation of earnings factors) of the Social Security Administration Act 19921, the Secretary of State has reviewed the general level of earnings obtaining in Great Britain.
The Secretary of State has concluded, having regard to earlier orders made under section 1482, that earnings factors3 for the relevant tax years have not, during the period taken into account for that review, maintained their value in relation to the general level of earnings.
The Secretary of State makes the following Order in exercise of the powers conferred by sections 148(3) and (4) and 189(1), (4) and (5) of the Social Security Administration Act 19924.

Citation and commencement1.

This Order may be cited as the Social Security Revaluation of Earnings Factors Order 2014 and shall come into force on 6th April 2014.

Revaluation of earnings factors2.

The earnings factors for tax years specified in the Schedule to this Order in so far as they are relevant—

(a)

to the calculation—

(i)

of the additional pension in the rate of any long-term benefit, or

(ii)

of any guaranteed minimum pension5; or

(b)

to any other calculation required under Part 3 of the Pension Schemes Act 19936 (including that Part as modified by or under any other enactment),

are directed to be increased for those tax years by the percentage of their amount shown opposite those tax years in that Schedule.

Rounding of fractional amounts3.

Where any earnings factor relevant to the calculation specified in article 2(a)(i) of this Order, as increased in accordance with this Order, would not but for this article be expressed as a whole number of pounds, it shall be so expressed by rounding down any fraction of a pound less than one half and rounding up any other fraction of a pound.

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

Steve Webb
Minister of State,
Department for Work and Pensions

SCHEDULEPercentage increase of earnings factor for specified tax years

Article 2

Tax year

Percentage increase

1978-1979

741.7

1979-1980

642.9

1980-1981

520.7

1981-1982

419.8

1982-1983

372.1

1983-1984

338.4

1984-1985

305.9

1985-1986

280.8

1986-1987

249.7

1987-1988

225.6

1988-1989

199.5

1989-1990

170.3

1990-1991

151.9

1991-1992

128.8

1992-1993

114.8

1993-1994

104.6

1994-1995

98.5

1995-1996

90.1

1996-1997

84.9

1997-1998

76.1

1998-1999

68.4

1999-2000

61.6

2000-2001

52.0

2001-2002

46.2

2002-2003

40.1

2003-2004

35.3

2004-2005

30.3

2005-2006

25.2

2006-2007

21.1

2007-2008

16.3

2008-2009

11.6

2009-2010

8.3

2010-2011

7.0

2011-2012

4.6

2012-2013

2.7

2013-2014

0.9

EXPLANATORY NOTE
(This note is not part of the Order)

This Order is made following a review under section 148 (revaluation of earnings factors) of the Social Security Administration Act 1992 (c. 5).

This Order directs that the earnings factors relevant to the calculation of the additional pension in the rate of any long-term benefit or of any guaranteed minimum pension, or to any other calculation required under Part 3 of the Pension Schemes Act 1993 (c. 48), are to be increased for the tax years specified in the Schedule to the Order by the percentage of their amount specified in that Schedule.

The percentages specified in this Order for the tax years from and including 2000 – 2001 are also relevant for the purposes of revaluing state scheme pension debits and credits in accordance with sections 45B(6), 55A(5) and 55B(6) of the Social Security Contributions and Benefits Act 1992 (c. 4).

The percentage for the tax year 2013 – 2014 is 0.9%. The percentages for earlier tax years have been increased so that the earnings factors for those years are revalued at 2013 – 2014 earning levels.

This Order also provides for rounding fractional amounts for earnings factors relevant to the calculation of the additional pension in the rate of any long-term benefit. By virtue of section 23(2) of the Social Security Contributions and Benefits Act 1992 (c. 4), rounding is not required for the purpose of the calculation of any guaranteed minimum pension.

A full impact assessment has not been produced for this instrument as it has no impact on the private sector or civil society organisations.