2021 No. 1319
Social Security

The State Pension Debits and Credits (Revaluation) Order 2021

Made
Laid before Parliament
Coming into force in accordance with article 1(2)
The Secretary of State for Work and Pensions has reviewed the general level of prices in Great Britain in accordance with section 148AD(1) of the Social Security Administration Act 19921.
The Secretary of State has had regard to the earlier orders under that section, and it appears to the Secretary of State that relevant debits or credits have not, during the review period, maintained their value in relation to the general level of prices2.
Accordingly the Secretary of State makes the following Order in exercise of the powers conferred by sections 148AD(2) and (3) and 189(1) and (4) of the Social Security Administration Act 19923.

Citation and commencement1.

(1)

This Order may be cited as the State Pension Debits and Credits (Revaluation) Order 2021.

(2)

This Order comes into force on—

(a)

22nd December 2021 for the purpose of making an award on a claim for a state pension under regulation 15(1) of the Social Security (Claims and Payments) Regulations 1987 (advance notice of retirement and claim for and award of pension)4 to a person who reaches pensionable age5 on or after 12th April 2022; and

(b)

11th April 2022 for all other purposes.

(3)

In this article “a state pension” means a state pension under Part 1 of the Pensions Act 2014.

Increase in the amount of relevant debits or credits2.

For the purposes of paragraph 3 of each of Schedules 8 and 10 to the Pensions Act 2014 (pension sharing: appropriate weekly rate and reduction), the amount of relevant debits or credits for the tax year specified in the first column of the table set out in the Schedule to this Order is to be increased by the percentage of their amount specified in the corresponding entry in the second column.

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

Guy Opperman
Parliamentary Under Secretary of State
Department for Work and Pensions

SCHEDULEPercentage increase of the amounts of relevant debits or credits for the specified tax years

Article 2

Tax year

Percentage increase

2016-2017

12.3

2017-2018

11.1

2018-2019

7.9

2019-2020

5.4

2020-2021

3.6

2021-2022

3.1

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

This Order is made following a review under section 148AD(1) of the Social Security Administration Act 1992 (c. 5) (revaluation of new state pension debits and credits).

Article 2 of this Order revalues debits and credits under section 49A(2) of the Welfare Reform and Pensions Act 1999 (c. 30) in accordance with the increase in the general level of prices.

Under paragraph 3 of each of Schedules 8 and 10 to the Pensions Act 2014 (c. 19) debits to which a person is subject (under section 14 of the Pensions Act 2014) and credits to which a person is entitled (under section 13 of the Pensions Act 2014) are revalued by the percentage specified by the last order under section 148AD to come into force before the person reached pensionable age. Pensionable age has the meaning given by the rules in paragraph 1 of Schedule 4 to the Pensions Act 1995 (c. 26).

Article 1(2) ensures that the revaluation of relevant debits or credits will apply to persons reaching pensionable age on or after 12th April 2022, including those who make an advance claim for a state pension under regulation 15(1) of the Social Security (Claims and Payments) Regulations 1987 (S.I. 1987/1968).

A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sector is foreseen.