PART 2SOCIAL SECURITY BENEFITS AND PENSIONS

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 7.

(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 0.5 per cent.

(3)

In section 44(4) of the Contributions and Benefits Act28 (basic pension in a Category A retirement pension)—

(a)

for “£109.50” substitute “£110.05”; and

(b)

for “£134.25” substitute “£137.60”.

(4)

It is directed29 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 2020-2021;

(b)

increases in the rates of retirement pensions under Schedule 5 to the Contributions and Benefits Act30 (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 Schedule31 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 197532, section 63 of the Social Security Act 198633 or section 150(1)(e) of the Social Security Administration Act 1992,

shall in each case be increased by 0.5 per cent.

(5)

The sums which, under—

(a)

section 55A and 55AA of the Contributions and Benefits Act34, are shared additional pensions; and

(b)

paragraph 2 of Schedule 5A to the Contributions and Benefits Act35, are increases in the rates of such pensions,

shall in each case be increased by 0.5 per cent.