Search Legislation

The Social Security Revaluation of Earnings Factors Order 2024

 Help about what version

What Version

  • Latest available (Revised)
  • Original (As made)

Status:

This is the original version (as it was originally made). This item of legislation is currently only available in its original format.

Statutory Instruments

2024 No. 284

SOCIAL SECURITY

The Social Security Revaluation of Earnings Factors Order 2024

Made

4th March 2024

Laid before Parliament

6th March 2024

Coming into force

6th April 2024

In accordance with section 148(2) of the Social Security Administration Act 1992(1), 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 148(2) of that Act, that earnings factors(3) 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.

Accordingly, the Secretary of State makes this Order in exercise of the powers conferred by sections 148(3) and (4) and 189(4) and (5) of the Social Security Administration Act 1992(4).

Citation, commencement and extent

1.—(1) This Order may be cited as the Social Security Revaluation of Earnings Factors Order 2024 and comes into force on 6th April 2024.

(2) This Order extends to England and Wales and Scotland.

Revaluation of earnings factors

2.  Earnings factors for the tax years specified in the Schedule to this Order in so far as they are relevant—

(a)to the calculation of—

(i)the additional pension in the rate of any long-term benefit; or

(ii)any guaranteed minimum pension(5); or

(b)to any other calculation required under Part 3 of the Pension Schemes Act 1993 (schemes that were contracted-out etc. and effects on members’ state scheme rights)(6) (including that Part as modified by or under any other enactment),

are directed(7) to be increased by the percentage of their amount shown opposite those tax years in that Schedule.

Rounding of fractional amounts

3.  Where any earnings factor relevant to the calculation specified in article 2(a)(i), as increased in accordance with this Order, would not but for this article be expressed as a whole number of pounds, it is to 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 authority of the Secretary of State for Work and Pensions

Paul Maynard

Parliamentary Under Secretary of State

Department for Work and Pensions

4th March 2024

Article 2

SchedulePercentage increase of earnings factors for specified tax years

Tax yearPercentage increase
1978-19791115.4
1979-1980972.7
1980-1981796.2
1981-1982650.6
1982-1983581.7
1983-1984533.0
1984-1985486.1
1985-1986449.8
1986-1987404.9
1987-1988370.1
1988-1989332.5
1989-1990290.3
1990-1991263.8
1991-1992230.4
1992-1993210.2
1993-1994195.4
1994-1995186.6
1995-1996174.5
1996-1997167.0
1997-1998154.3
1998-1999143.1
1999-2000133.3
2000-2001119.5
2001-2002111.0
2002-2003102.3
2003-200495.3
2004-200588.2
2005-200680.7
2006-200774.8
2007-200867.9
2008-200961.2
2009-201056.3
2010-201154.5
2011-201251.0
2012-201348.3
2013-201445.7
2014-201544.4
2015-201642.3
2016-201739.5
2017-201835.9
2018-201932.0
2019-202028.4
2020-202123.4
2021-202220.3
2022-202315.1
2023-20247.6

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 applies to earnings factors relevant to the calculation of additional pension in 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) (“the 1993 Act”). Article 2 provides that, for those purposes, earnings factors for the tax years specified in the Schedule to this Order are to be increased by the percentage of their amount specified in that Schedule; the effect is that earnings factors for those years are revalued at 2023-2024 earnings levels.

Accruals of additional state pension ended with the introduction of new state pension on 6th April 2016. Revaluation of earnings factors is still required for inherited additional state pension in certain circumstances (see sections 48B and 51 of the Social Security Contributions and Benefits Act 1992 (c. 4) (“the Contributions and Benefits Act”)).

The percentages specified in this Order for the tax years from and including 2000-2001 are used in the revaluation of old state scheme pension debits and credits (awarded under section 49(1) of the Welfare Reform and Pensions Act 1999 (c. 30)) in accordance with sections 13 and 14 of, and paragraph 2(6) of each of Schedules 8 and 10 to, the Pensions Act 2014 (c. 19). The percentage specified for 2015-2016 is used to increase flat rate accrual amounts of additional state pension in accordance with paragraphs 4(2), 8(4) and 9(4) of Schedule 4B to the Contributions and Benefits Act.

Accruals of guaranteed minimum pensions ended on 6th April 1997 by virtue of section 14(8) of the 1993 Act. Revaluation of earnings factors is still required for guaranteed minimum pensions which are not yet in payment.

Article 3 of this Order 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 Contributions and Benefits Act, rounding is not required for the purpose of calculating guaranteed minimum pensions.

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.

(1)

1992 c. 5 (“the Administration Act”). Section 148(2) was amended by section 37 of the Child Support, Pensions and Social Security Act 2000 (c. 19) (“the 2000 Act”).

(2)

Section 148(7) of the Administration Act was amended by paragraph 27 of Schedule 8 to the Pension Schemes Act 1993 (c. 48) (“the 1993 Act”). Section 148(7)(b) provides that orders under section 21 (revaluation of earnings factors) of the Social Security Pensions Act 1975 (c. 60) are to be treated as orders under section 148. Relevant orders are therefore S.I. 1979/832, 1980/728, 1981/598, 1982/607, 1983/655, 1984/581, 1985/688, 1986/809, 1987/861, 1988/867, 1989/805, 1990/1412, 1991/1108, 1992/1102, 1993/1159, 1994/1105, 1995/1070, 1996/1133, 1997/1117, 1998/1137, 1999/1235, 2000/1365, 2001/631, 2002/519, 2003/517, 2004/262, 2005/216, 2006/496, 2007/781, 2008/730, 2009/608, 2010/470, 2011/475, 2012/187, 2013/527, 2014/367, 2015/187, 2016/205, 2017/287, 2018/271, 2019/376, 2020/193, 2021/267, 2022/216 and 2023/266.

(3)

See in respect of additional pensions sections 22 and 23 of the Social Security Contributions and Benefits Act 1992 (c. 4) (“the Contributions and Benefits Act”). Section 22 was amended by paragraph 22 of Schedule 2 to the Jobseekers Act 1995 (c. 18), paragraph 61 of Schedule 7 to the Social Security Act 1998 (c. 14) (“the 1998 Act”), section 30(1) of the 2000 Act, paragraph 7 of Schedule 1 to the National Insurance Contributions Act 2002 (c. 19) (“the 2002 Act”), paragraph 9(3) and (4) of Schedule 3 to the Welfare Reform Act 2007 (c. 5), section 12(1) of, and paragraphs 9 and 33 of Schedule 1 to, the Pensions Act 2007 (c. 22), section 3(2) of, and paragraph 2 of Schedule 1 to, the National Insurance Contributions Act 2008 (c. 16) (“the 2008 Act”) and paragraph 6 of Schedule 12, and paragraph 5 of Schedule 16, to the Pensions Act 2014 (c. 19) (“the 2014 Act”). Section 23 was amended by paragraph 36 of Schedule 8 to the 1993 Act, section 134(1) of the Pensions Act 1995 (c. 26) (“the 1995 Act”), paragraph 8 of Schedule 1 to the 2002 Act and paragraph 3(2) and (3) of Schedule 1 to the 2008 Act. See also in respect of guaranteed minimum pensions section 14 of the 1993 Act, as amended by paragraph 27 of Schedule 5, and Part 3 of Schedule 7, to the 1995 Act, paragraph 38 of Schedule 1 to the Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2), paragraph 22(1) and (3) of Schedule 11 to the Proceeds of Crime Act 2002 (c. 29) and paragraphs 1 and 15 of Schedule 13 to the 2014 Act. See also paragraphs 4(2), 8(4) and 9(4) of Schedule 4B to the Contributions and Benefits Act under which flat rate accrual amounts of additional state pension are to be increased by reference to the percentage figure specified for 2015-2016 in orders under section 148 of the Administration Act. Schedule 4B was inserted by paragraph 1 of Schedule 2 to the Pensions Act 2007 and relevant amendments were made by S.I. 2016/224. See also paragraph 2(6) of each of Schedules 8 and 10 to the 2014 Act under which old state scheme pension debits and credits are to be increased by reference to percentage figures specified in orders under section 148 of the Administration Act.

(4)

Relevant amendments to section 189 of the Administration Act are made by section 86 of, and paragraph 109 of Schedule 7, and Schedule 8, to, the 1998 Act and S.I. 2013/252.

(5)

Earnings factors for any year after 1996-1997 are not relevant to the calculation of any guaranteed minimum pension: section 14(8) of the 1993 Act as amended by paragraph 27(b) of Schedule 5 to the 1995 Act.

(7)

See section 148(4) of the Administration Act.

Back to top

Options/Help

Print Options

Close

Legislation is available in different versions:

Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.

Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.

Close

Opening Options

Different options to open legislation in order to view more content on screen at once

Close

Explanatory Memorandum

Explanatory Memorandum sets out a brief statement of the purpose of a Statutory Instrument and provides information about its policy objective and policy implications. They aim to make the Statutory Instrument accessible to readers who are not legally qualified and accompany any Statutory Instrument or Draft Statutory Instrument laid before Parliament from June 2004 onwards.

Close

More Resources

Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • correction slips
  • links to related legislation and further information resources
Close

More Resources

Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as made version that was used for the print copy
  • correction slips

Click 'View More' or select 'More Resources' tab for additional information including:

  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • links to related legislation and further information resources