2014 No. 369
Social Security

The Social Security Pensions (Flat Rate Accrual Amount) Order 2014

Made
Laid before Parliament
Coming into force
In accordance with section 148AA(1) (revaluation of flat rate accrual amount) of the Social Security Administration Act 19921, the Secretary of State has reviewed the general level of earnings obtaining in Great Britain.

It appears to the Secretary of State that the general level of earnings has increased during the review period.

The Secretary of State makes the following Order in exercise of the powers conferred by sections 148AA(3) to (6) and 189(1), (4) and (5) of the Social Security Administration Act 19922.

Citation and commencement1.

This Order may be cited as the Social Security Pensions (Flat Rate Accrual Amount) Order 2014 and shall come into force on 6th April 2014.

Flat Rate Accrual Amount2.

For the purpose of paragraph 13(2) of Schedule 4B to the Social Security Contributions and Benefits Act 19923, the flat rate accrual amount for the tax year beginning 6th April 2014 and subsequent tax years shall be £92.00.

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

Steve Webb
Minister of State,
Department for Work and Pensions
EXPLANATORY NOTE
(This note is not part of the Order)

This Order is made following a review by the Secretary of State under section 148AA(1) of the Social Security Administration Act 1992 (c. 5) of the general level of earnings in Great Britain with a view to determining whether, and if so by how much, the general level of earnings has increased during the period from 1st October 2012 to 30th September 2013. As a result of that review, it appears to the Secretary of State that the general level of earnings during that period has increased by 0.9%. This Order therefore directs, in accordance with section 148AA(4) of that Act, that the flat rate accrual amount for the tax year beginning 6th April 2014, and subsequent tax years, shall be £92.00.

The flat rate accrual amount is a flat rate cash amount of additional pension which applies to accruals in the first earnings band under Schedule 4B to the Social Security Contributions and Benefits Act 1992 (c.4). This method of calculation of additional pension applies from the flat rate introduction year, which by virtue of the Social Security Pensions (Flat Rate Introduction Year) Order 2011 (S.I. 2011/2953) is the tax year beginning 6th April 2012.

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