Social Security Act 1986

Type Public General Act
Publication 1986-07-25
Last updated 2010-01-01
State In force
Department Statute Law Database
articles Not indexed
Reform history JSON API

(2A) An occupational pension scheme satisfies this subsection only if— (a) the requirements imposed by or by virtue of Schedule 1 to the Social Security Act 1986, modified under subsection (2B) below, are satisfied in its case; (b) it complies with section 40(1) below; and (c) the rules of the scheme applying to protected rights are framed so as to comply with the requirements of any regulations prescribing the form and content of rules of contracted-out schemes and with such other requirements as to form and content (not inconsistent with regulations) as may be imposed by the Occupational Pensions Board as a condition of contracting-out, either generally or in relation to a particular scheme. (2B) The modifications of Schedule 1 are— (a) that for the references to a personal pension scheme there shall be substituted references to an occupational pension scheme; (b) that for the references in paragraph 5 to minimum contributions there shall be substituted references to minimum payments and any payments by the Secretary of State under section 7 of the Social Security Act 1986; (c) that for paragraph 7(2) there shall be substituted— (2) The rules of the scheme may provide that a member’s protected rights are his rights under the scheme which derive from the payment of minimum payments (within the meaning of the Social Security Pensions Act 1975) together with any payments by the Secretary of State to the scheme under section 7 of this Act in respect of the member and any rights of the member to money purchase benefits which derive from protected rights (within the meaning of the Social Security Pensions Act 1975) under another occupational pension scheme or protected rights under a personal pension scheme which have been the subject of a transfer payment and such other rights as may be prescribed.; (d) that in paragraph 9— (i) for the reference to an occupational pension scheme there shall be substituted a reference to a personal pension scheme; and (ii) for the reference to a personal pension protected rights premium there shall be substituted a reference to a contracted-out protected rights premium; and (e) that paragraph 10 shall not apply to public service pension schemes. (2C) A contracting-out certificate shall state whether the scheme is contracted-out by virtue of subsection (2) or subsection (2A) above; and where a scheme satisfies both of those subsections the employers, in their application for a certificate, shall specify one of the subsections as the subsection by virtue of which they desire the scheme to be contracted-out. (2D) A scheme which has been contracted-out by virtue of one of those subsections may not become contracted-out by reason of the other, except in prescribed circumstances.

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6
  • (1) The words “which is not a money purchase contracted-out scheme” shall be inserted after the words “occupational pension scheme” in—
  • (a) section 33(1);
  • (b) section 36(1);
  • (c) section 40(3) and (4);
  • (d) section 41A(1);
  • (e) section 42(1);
  • (f) section 44(1);
  • (g) section 44A(1);
  • (h) section 45(1);
  • (j) section 51;
  • (k) paragraph 4(1) and (2) of Schedule 2.
  • (2) If section 9 above comes into force after this paragraph, the amendment to section 36(1) made by sub-paragraph (1) above shall be made in the subsection both as amended by section 9 above and as unamended.
  • (3) The words “or a money purchase contracted-out scheme” shall be inserted after the words “public service pension scheme” in—
  • (a) section 40(2);
  • (b) section 41(1);
  • (c) section 41E(1).
7

The following section shall be inserted after section 44—

(44ZA) (1) In the case of a scheme which is or has been a money purchase contracted-out scheme the Occupational Pensions Board may, for the event of, or in connection with, its ceasing to be contracted-out, approve any arrangements made or to be made in relation to the scheme, or for its purposes, for the preservation or transfer of protected rights under the scheme. (2) If the scheme ceases to be a contracted-out scheme (whether by being wound up or otherwise) and the Occupational Pensions Board either— (a) have withdrawn their approval of previously approved arrangements relating to it; or (b) have declined to approve arrangements relating to it, the Board may issue a certificate to that effect. (3) A certificate issued under subsection (2)(a) or (b) above shall be cancelled by the Board if they subsequently approve the arrangements. (4) If the scheme ceases to be a contracted-out scheme (whether by being wound up or otherwise), a state scheme premium shall be payable, except in prescribed circumstances,— (a) in respect of each earner whose protected rights under the scheme are not subject to approved arrangements and have not been disposed of so as to discharge the trustees or managers of the scheme under section 52C of or paragraph 16 of Schedule 1A to this Act; and (b) in respect of each person who has become entitled to receive a pension under the scheme giving effect to protected rights which are not subject to approved arrangements. (5) A premium under subsection (4) above may be referred to as a “contracted-out protected rights premium”. (6) A contracted-out protected rights premium shall be paid by the prescribed person, within the prescribed period, to the Secretary of State. (7) The amount of a contracted-out protected rights premium payable in respect of any person shall be the cash equivalent of the protected rights in question, calculated and verified in the prescribed manner. (8) Where a contracted-out protected rights premium is paid in respect of a person— (a) the rights whose cash equivalent is included in the premium shall be extinguished; and (b) section 29(2) and (2A) above and section 4 of the Social Security Act 1986 shall have effect in relation to that person and a widow or widower of that person as if any guaranteed minimum pension to which that person or any such widow or widower is treated as entitled under those provisions and which derives from the minimum payments, minimum contributions (within the meaning of the Social Security Act 1986) or transfer payment or payments from which those rights derive were reduced by the appropriate percentage. (9) In subsection (8) above “the appropriate percentage” means, subject to the following provisions of this section, $$XY×100,$where—(a) X = the amount of the premium together with, if the person in respect of whom it falls to be paid gives notice to the prescribed person within the prescribed period— (i) the cash equivalent, calculated and verified in the prescribed manner, and paid to the Secretary of State within the prescribed period, of any other rights which he has under the scheme and specifies in the notice; and (ii) the amount of any voluntary contribution paid to the Secretary of State within the prescribed period by, or in respect of, the person concerned; and(b) Y = the cost of providing any guaranteed minimum pension such as is mentioned in subsection (8) above.$ (10) If the appropriate percentage, as calculated under subsection (9) above would fall between two whole numbers, it is to be taken to be the lower number. (11) If it would be over 1000, it is to be taken to be 100. (12) The remainder after the reduction for which subsection (8) above provides— (a) if it would contain a fraction of 1p, is to be treated as the nearest lower whole number of pence; and (b) if it would be less than a prescribed amount, is to be treated as nil. (13) The power to make regulations conferred by subsections (7) and (9) above includes power to provide that cash equivalents are to be calculated and verified in such manner as may be approved in particular cases— (a) by prescribed persons; (b) by persons with prescribed professional qualifications or experience; or (c) by persons approved by the Secretary of State, and power to provide that they shall be calculated and verified in accordance with guidance prepared by a prescribed body. (14) The cost of providing the appropriate percentage of the guaranteed minimum pension shall be certified by the Secretary of State, and in calculating and certifying it the Secretary of State— (a) shall apply whichever of the prescribed actuarial tables (as in force at the time when the scheme ceases to be appropriate) is applicable in accordance with the regulations prescribing the tables; and (b) may make such adjustments as he thinks necessary for avoiding fractional amounts.

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8

In section 48 (guaranteed minimum pensions to be inalienable)—

  • (a) in subsection (1)—
  • (i) after the word “scheme”, in the first place where it occurs, there shall be inserted the words “or to payments giving effect to protected rights under such a scheme”; and
  • (ii) after the word “pension”, where it occurs in paragraphs (a) and (b), there shall be inserted the words “or those payments”; and
  • (b) in subsection (3), for the words from “any”, in the first place where it occurs, to “not” there shall be substituted the words “nothing whose assignment is or would be made void by that subsection shall”
9

In section 49 (supervision of schemes which have ceased to be contracted-out)—

  • (a) the following paragraph shall be substituted for subsection (1)(b)—

(b) there has not been a payment— (i) of a premium under section 44 above in respect of each person entitled to receive, or having accrued rights to, guaranteed minimum pensions under the scheme; or (ii) of a premium under section 44ZA above in respect of each person who has protected rights under it or is entitled to any benefit giving effect to protected rights under it;

;

  • (b) in subsection (2)(a), after the word “above” there shall be inserted the words “or, by virtue of subsections (2A) and (2B) of section 32 above, paragraph 10(1) of Schedule 1 to the Social Security Act 1986”; and
  • (c) in subsection (5), “32” shall be substituted for “33”.
10

At the end of subsection (3) of section 50 (alteration of rules of contracted-out schemes) there shall be added the words “or any person has protected rights under it or is entitled to any benefit giving effect to protected rights under it”.

11

In section 66(1) (interpretation)—

  • (a) the following definition shall be inserted before the definition of “guaranteed minimum pension”—
  • average salary benefits” means benefits the rate or amount of which is calculated by reference to a member’s average salary over the period of service on which the benefits are based;

;

  • (b) the following definitions shall be inserted after the definition of “long-term benefit”—
  • minimum payments” shall be construed in accordance with section 30 above;
  • money purchase benefits” in relation to an occupational pension scheme, means benefits the rate or amount of which is calculated by reference to a payment or payments made by a member of the scheme or by any other person in respect of a member, other than average salary benefits;
  • money purchase contracted-out scheme” means an occupational pension scheme which is contracted-out by virtue of satisfying section 32(2A) above;

;

  • (c) the following definition shall be inserted after the definition of “the principal Act”—
  • protected rights” has the meaning given by Schedule 1 to the Social Security Act 1986 with the substitution made by section 32(2B) above.

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12

In paragraph 2 of Schedule 3 (priority in bankruptcy etc.)—

  • (a) the following sub-paragraph shall be inserted after sub-paragraph (1)—

(1A) This Schedule applies to any sum owed on account of an employer’s minimum payments to a contracted-out scheme falling to be made in the period of twelve months immediately preceding the relevant date.

; and

  • (b) in sub-paragraph (2)—
  • (i) the words “or payments” shall be inserted after the word “contributions”; and
  • (ii) the words “or (1A)” shall be inserted after the words “sub-paragraph (1)”.

SCHEDULE 3

Social Security Act 1975 (c. 14)

1

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2

The following subsection shall be substituted for section 50(1)—

(1) Subject to the provisions of this Act, industrial injuries benefit shall be payable where an employed earner suffers personal injury caused after 4th July 1948 by accident arising out of and in the course of his employment, being employed earner's employment.

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3
  • (1) In subsection (1) of section 57 (disablement benefit) " 14 per cent." shall be substituted for " 1 per cent ".
  • (2) The following subsections shall be inserted after that subsection—

(1A) In the determination of the extent of an employed earner's disablement for the purposes of this section there may be added to the percentage of the disablement resulting from the relevant accident the assessed percentage of any present disablement of his resulting from any other accident after 4th July 1948 which arose out of and in the course of his employment being employed earner's employment, and in respect of which a disablement gratuity was not paid to him under this Act after a final assessment of his disablement. (1B) Subject to subsection (1C) below, where the assessment of disablement is a percentage between 20 and 100 which is not a multiple of 10, it shall be treated— (a) if it is a multiple of 5, as being the next higher percentage which is a multiple of 10; and (b) if it is not a multiple of 5, as being the nearest percentage which is a multiple of 10, and where it is a percentage of 14 or more but less than 20 it shall be treated as a percentage of 20. (1C) Where subsection (1A) above applies, subsection (1B) above shall have effect in relation to the aggregate percentage and not in relation to any percentage forming part of the aggregate.

.

  • (3) Subsection (5) of that section shall cease to have effect except in relation to cases where the claim for benefit was made before this paragraph comes into force.
  • (4) Subsection (6) shall have effect, except in relation to such cases, as if the words " Where disablement benefit is payable for a period, it shall be paid " were substituted for the words from the beginning to " payable ".
4

Sections 58 and 59 and 64 to 66 (unemployability supplement) shall cease to have effect, except in relation to beneficiaries in receipt of unemployability supplement immediately before this paragraph comes into force.

5
  • (1) The following section shall be inserted after section 59—

(59A) (1) Subject to the provisions of this Part of this Act, an employed earner shall be entitled to reduced earnings allowance if— (a) he is entitled to a disablement pension or would be so entitled if that pension were payable where disablement is assessed at not less than 1 per cent.; (b) as a result of the relevant loss of faculty, he is either— (i) incapable, and likely to remain permanently incapable, of following his regular occupation; and (ii) incapable of following employment of an equivalent standard which is suitable in his case, or is, and has at all times since the end of the period of 90 days referred to in section 57(4) above been, incapable of following that occupation or any such employment. (2) The Secretary of State may by regulations provide that in prescribed circumstances employed earner's employment in which a claimant was engaged when the relevant accident took place but which was not his regular occupation is to be treated as if it had been his regular occupation. (3) In subsection (1) above— (a) references to a person's regular occupation are to be taken as not including any subsidiary occupation, except to the extent that they fall to be treated as including such an occupation by virtue of regulations under subsection (2) above ; and (b) employment of an equivalent standard is to be taken as not including employment other than employed earner's employment; and in assessing the standard of remuneration in any employment, including a person's regular occupation, regard is to be had to his reasonable prospect of advancement. (4) For the purposes of this section a person's regular occupation is to be treated as extending to and including employment in the capacities to which the persons in that occupation (or a class or description of them to which he belonged at the time of the relevant accident) are in the normal course advanced, and to which, if he had continued to follow that occupation without having suffered the relevant loss of faculty, he would have had at least the normal prospects of advancement; and so long as he is, as a result of the relevant loss of faculty, deprived in whole or in part of those prospects, he is to be treated as incapable of following that occupation. (5) Regulations may for the purposes of this section provide that a person is not to be treated as capable of following an occupation or employment merely because of his working thereat during a period of trial or for purposes of rehabilitation or training or in other prescribed circumstances. (6) Reduced earnings allowance shall be awarded— (a) for such period as may be determined at the time of the award ; and (b) if at the end of that period the beneficiary submits a fresh claim for the allowance, for such further period as may be determined. (7) The award may not be for a period longer than the period to be taken into account under paragraph 4 or 4A of Schedule 8 to this Act. (8) Reduced earnings allowance shall be payable at a rate determined by reference to the beneficiary's probable standard of remuneration during the period for which it is granted in any employed earner's employments which are suitable in his case and which he is likely to be capable of following as compared with that in the relevant occupation, but in no case at a rate higher than 40 per cent, of the maximum rate of a disablement pension or at a rate such that the aggregate of disablement pension and reduced earnings allowance awarded to the beneficiary exceeds 140 per cent, of the maximum rate of a disablement pension. (9) In subsection (8) above " the relevant occupation " means— (a) in relation to a person who is entitled to reduced earnings allowance by virtue of regulations under subsection (2) above, the occupation in which he was engaged when the relevant accident took place; and (b) in relation to any other person who is entitled to reduced earnings allowance, his regular occupation within the meaning of subsection (1) above. (10) On any award except the first the probable standard of his remuneration shall be determined in such manner as may be prescribed ; and, without prejudice to the generality of this subsection, regulations may provide in prescribed circumstances for the probable standard of remuneration to be determined by reference— (a) to the standard determined at the time of the last previous award of reduced earnings allowance ; and (b) to scales or indices of earnings in a particular industry or description of industries or any other data relating to such earnings. (11) A person who— (a) attains pensionable age after this section comes into force; and (b) has retired from regular employment before that day; and (c) was entitled to reduced earnings allowance on the day immediately before he retired from regular employment, shall be treated as entitled as from the day on which he retires from regular employment to reduced earnings allowance at a rate not higher at any time than that at which the allowance was payable to him immediately before he retired from regular employment.

.

  • (2) Section 60 (increase of disablement pension for special hardship) shall cease to have effect.
  • (3) A person who—
  • (a) is over pensionable age on the day on which this paragraph comes into force ; and
  • (b) has retired from regular employment before that day ; and
  • (c) was entitled on the day immediately before that day to an increase under section 60,

shall be treated as entitled as from the day on which this paragraph comes into force to reduced earnings allowance at a rate not higher at any time than that at which the increase was payable to him immediately before that day.

  • (4) Where for any period commencing before 6th April 1987 a person is entitled both to reduced earnings allowance under section 59A and to an additional pension of a long-term benefit or, if the long-term benefit is invalidity pension, to either an invalidity allowance or an additional pension, or both, his reduced earnings allowance shall be reduced in respect of any part of the period falling on or after 6th April 1987 by the amount of any increase in the additional pension or invalidity allowance as the result of an order under section 63 above taking effect on or after that date.
  • (5) Where for any period commencing on or after 6th April 1987 a person is entitled as mentioned in sub-paragraph (4) above, his reduced earnings allowance shall be reduced by the amount of any additional pension or invalidity allowance to which he is entitled.
  • (6) Where a reduction falls to be made under sub-paragraph (4) or (5) above, the person to whom it falls to be made shall be entitled to reduced earnings allowance only if there is a balance after the reduction and, if there is such a balance, of an amount equal to it.
  • (7) Where the weekly rate of a benefit is reduced under section 29 of the Social Security Pensions Act 1975, there shall be subtracted from the amount which would otherwise fall to be deducted under sub-paragraph (4) or (5) above an amount equal to the reduction under that section.
  • (8) In the preceding sub-paragraphs references to an additional pension are references to that pension after any increase under section 9(3) of the Social Security Pensions Act 1975 but without any increase under Schedule 1, paragraphs 1 and 2, to that Act.
6

The following subsections shall be inserted after subsection (2) of section 61 (constant attendance allowance)—

(3) The Secretary of State may by regulations direct that any provision of section 35 above shall have effect, with or without modifications, in relation to increases of pension under this section. (4) In subsection (3) above " modifications " includes additions and omissions.

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7

Section 62 (increase during hospital treatment) shall cease to have effect, except in relation to a period during which a person is receiving medical treatment as an in-patient in a hospital or similar institution and which—

  • (a) commenced before the corning into force of this paragraph ; or
  • (b) commenced after it but within a period of 28 days from the end of the period during which he last received an increase of benefit under that section in respect of such treatment for the relevant injury or loss of faculty.
8

The following provisions (which all relate to industrial death benefit)—

  • (a) sections 67 and 68 ;
  • (b) sections 70 to 75 ; and
  • (c) Schedule 9,

shall cease to have effect.

9
  • (1) This paragraph shall have effect in relation to widows who on the day before paragraph 8 above comes into force are entitled to death benefit under section 67.
  • (2) A widow who is entitled to a pension at the initial rate specified in Schedule 4, Part V, paragraph 13(a) shall be treated as satisfying the conditions of entitlement to a widow's allowance specified in subsection (1) of section 24 and her entitlement to the allowance under that section shall, subject to the proviso to subsection (2) of that section, continue for so long as she would have been entitled to a pension under section 67 at the initial rate.
  • (3) A widow who—
  • (a) is not entitled to a pension at the initial rate but has one or more dependent children ; or
  • (b) is pregnant on the day before paragraph 8 above comes into force,

shall be treated as satisfying the conditions of entitlement to a widowed mother's allowance under section 25 and her entitlement to the allowance shall, subject to the proviso to subsection (3) of that section, continue for so long as she satisfies either of the conditions specified in paragraph (a) or (b) of subsection (1) of that section.

  • (4) A widow who—
  • (a) is under 60 ; and
  • (b) has no dependent child ; and
  • (c) does not fall to be treated as entitled to a widow's allowance or a widowed mother's allowance,

shall be treated as satisfying the conditions of entitlement to a widow's pension under section 26 and the pension shall be payable for any period during which she satisfies the provisions of subsection (3) of that section.

  • (5) Subject to sub-paragraph (6) below, the rate of a widow's pension under sub-paragraph (4) above shall be—
  • (a) in the case of a widow who was entitled to an allowance under section 70 after her husband died, but has ceased to be so entitled, the rate for a widow of the age she was when she so ceased;
  • (b) in the case of a widow who was not so entitled, the rate for a widow of the age she was when her late husband died,

and for the purposes of this subsection a woman who was under the age of 40 at the relevant time shall be treated as having been of the age of 40 at that time.

  • (6) The rate of pension for a widow who is entitled under section 68(2) to a pension at the higher permanent rate specified in Schedule 4, Part V, paragraph 13(b), shall be the rate specified in section 13 of the Social Security Pensions Act 1975 and shall be that rate notwithstanding anything in subsection (3) of that section.
  • (7) Regulations may provide that a widow who on the day before paragraph 8 above comes into force is entitled to death benefit under section 67 shall be entitled to a prescribed benefit at a prescribed rate.
  • (8) In this paragraph " dependent child " means a child in respect of whom the widow is entitled to child benefit if one of the conditions specified in section 43(1) is for the time being satisfied with respect to the child and the child is either—
  • (a) a son or daughter of the widow and her late husband ; or
  • (b) a child in respect of whom her late husband was immediately before his death entitled to child benefit; or
  • (c) if the widow and her late husband were residing together immediately before his death, a child in respect of whom she was then entitled to child benefit.
10

In any case where—

  • (a) an employed earner who is married dies as a result—
  • (i) of a personal injury of a kind mentioned in section 50(1); or
  • (ii) of a disease or injury such as is mentioned in section 76(1);
  • (b) the contribution conditions are not wholly satisfied in respect of him;

those conditions shall be taken to be satisfied for the purposes of his widow's entitlement to—

  • (i) a widow's allowance or widow's payment;
  • (ii) a widowed mother's allowance ;
  • (iii) a widow's pension ; or
  • (iv) a Category B retirement pension at the same weekly rate as her widow's pension.
11

Section 69 (widower's death benefit) shall cease to have effect, except in relation to widowers in receipt of death benefit immediately before this paragraph comes into force.

12

The Secretary of State may by regulations provide for the payment of prescribed amounts in prescribed circumstances to persons who immediately before the repeal of sections 71 to 73 were entitled to any benefit by virtue of any of those sections, but in determining the amount which is to be payable in any case or class of cases the Secretary of State may take into account—

  • (a) the extent to which the weekly rate of industrial death benefit has been modified in that case or class of cases by virtue of section 74 ;
  • (b) the age of the beneficiary and of any person or persons formerly maintained by the deceased ; and
  • (c) the length of time that entitlement to the benefit would have been likely to continue if those sections had not been repealed.
13

In section 77 (regulations as to industrial diseases) the following subsections shall be inserted after subsection (3)—

(4) The regulations may also provide— (a) that in the determination of the extent of an employed earner's disablement resulting from a prescribed disease or injury there may be added to the percentage of that disablement the assessed percentage of any present disablement of his resulting from— (i) any accident after 4th July 1948 arising out of and in the course of his employment, being employed earner's employment; (ii) any other prescribed disease or injury due to the nature of that employment and developed after 4th July 1948, and in respect of which a disablement gratuity was not paid to him under this Act after a final assessment of his disablement; and (b) that in the determination of the extent of an employed earner's disablement for the purposes of section 57 above there may be added to the percentage of disablement resulting from the relevant accident the assessed percentage of any present disablement of his resulting from any prescribed disease or injury due to the nature of his employment and developed after 4th July 1948 and in respect of which a disablement gratuity was not paid to him under this Act after a final assessment of his disablement (5) Where the regulations make provision such as is mentioned in subsection (4) above and also make provision corresponding to subsection (1B) of section 57 above, they may also make provision to the effect that the corresponding provisions shall have effect in relation to the aggregate percentage and not in relation to any percentage forming part of the aggregate.

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14

In section 108 (disablement questions)—

  • (a) in subsection (1) the following words shall be added at the end, but not as part of paragraph (b)—

but questions relating to the aggregation of percentages of disablement resulting from different accidents are not disablement questions.

; and

  • (b) the following subsection shall be inserted after subsection (4)—

(4A) In the case of a claimant for disablement benefit the adjudication officer may refer to one or more adjudicating medical practitioners for determination any question as to the extent of any present disablement of his resulting from an accident other than the accident which is the basis of the claim.

.

15

In Schedule 8 (assessment of extent of disablement)—

  • (a) paragraph 4 shall be renumbered as sub-paragraph (1) of that paragraph; and
  • (b) the following sub-paragraph shall be inserted after that sub-paragraph—

(2) Where— (a) the assessed extent of a claimant's disablement amounts to 13 per cent, or less ; (b) it seems likely that the assessed extent of a claimant's disablement will be aggregated with the assessed extent of any present disablement of his and the likely aggregate amounts to 13 per cent, or less, the period to be taken into account by the assessment of the disablement shall not end earlier than any date by which it seems likely that the extent of the disablement or the aggregate will be at least 1 per cent.

.

Industrial Injuries and Diseases (Old Cases) Act 1975 (c. 16)

16

For the purposes of section 159 and of section 7 of the Industrial Injuries and Diseases (Old Cases) Act 1975 paragraph 4 of this Schedule shall be deemed not to have been enacted.

Pneumoconiosis etc. (Workers’ Compensation) Act 1979 (c. 41)

17
  • (1) Section 2 of the Pneumoconiosis etc. (Workers’ Compensation) Act 1979 (conditions of entitlement to lump sum payments) shall be amended as follows.
  • (2) At the end of subsection (1)(a) there shall be added the words “or, subject to subsection (3A) below, would be payable to him in respect of it but for his disablement amounting to less than the appropriate percentage”.
  • (3) At the end of subsection (2)(b) there shall be added the words

or, subject to subsection (3A) below, would have been so payable to him— (i) but for his disablement amounting to less than the appropriate percentage; or (ii) but for his not having claimed the benefit; or (iii) but for his having died before he had suffered from the disease for the appropriate period

.

  • (4) In subsection (3) the following definitions shall be inserted before the definition of “death benefit”—
  • the appropriate percentage” means, in the case of any disease, the percentage specified in subsection (1) of section 57 of the Social Security Act 1975 or, if regulations have been made under section 77 of that Act specifying a different percentage in relation to that disease, the percentage specified in the regulations;
  • the appropriate period” means, in the case of any disease, the period specified in subsection (4) of the said section 57 or, if regulations have been made under the said section 77 specifying a different period in relation to that disease, the period specified in the regulations;

.

  • (5) The following subsection shall be inserted after that subsection—

(3A) No amount is payable under this Act in respect of disablement amounting to less than 1 per cent.

.

SCHEDULE 4

PART I — Provisions Supplementary to Part V

Recovery of amounts paid by way, of statutory maternity pay

1

Regulations shall make provision—

  • (a) entitling, except in prescribed circumstances, any person who has made a payment of statutory maternity pay to recover the amount so paid by making one or more deductions from his contributions payments ; and
  • (b) for the payment, in prescribed circumstances, by the Secretary of State or by the Commissioners of Inland Revenue on behalf of the Secretary of State, of sums to persons who are unable so to recover the whole, or any part, of any payments of statutory maternity pay which they have made ;
  • (c) giving any person who has made a payment of statutory maternity pay a right, except in prescribed circumstances, to an amount, determined in such manner as may be prescribed—
  • (i) by reference to secondary Class 1 contributions paid in respect of statutory maternity pay ; or
  • (ii) by reference to secondary Class 1 contributions paid in respect of statutory sick pay ; or
  • (iii) by reference to the aggregate of secondary Class 1 contributions paid in respect of statutory maternity pay and secondary Class 1 contributions paid in respect of statutory sick pay ;
  • (d) providing for the recovery, in prescribed circumstances, of the whole or any part of any such amount from contributions payments ;
  • (e) for the payment, in prescribed circumstances, by the Secretary of State or by the Commissioners of Inland Revenue on behalf of the Secretary of State, of the whole or any part of any such amount.
2

Regulations under paragraph 1 above may, in particular provide for any deduction made in accordance with the regulations to be disregarded for prescribed purposes.

3

The power to make regulations conferred by paragraph 5 of Schedule 1 to the Social Security Act 1975 (power to combine collection of contributions with collection of income tax) shall include power to make such provision as the Secretary of State considers expedient in consequence of any provision made by or under this Schedule.

4

Provision made in regulations under paragraph 5 of Schedule 1, by virtue of paragraph 3 above, may in particular require the inclusion—

  • (a) in returns, certificates and other documents ; or
  • (b) in any other form of record ;

which the regulations require to be kept or produced or to which those regulations otherwise apply, of such particulars relating to statutory maternity pay or deductions or payments made by virtue of paragraph 1 above as may be prescribed by those regulations.

5

Where, in accordance with any provision of regulations made under this Schedule, an amount has been deducted from an employer's contributions payments, the amount so deducted shall (except in such cases as may be prescribed) be treated for the purposes of any provision made by or under any enactment in relation to primary or secondary Class 1 contributions as having been—

  • (a) paid (on such date as may be determined in accordance with the regulations); and
  • (b) received by the Secretary of State,

towards discharging the employer's liability in respect of such contributions.

Provision of information by women and their employers and / or former employers

6

A woman shall provide the person who is liable to pay her statutory maternity pay—

  • (a) with evidence as to her pregnancy and the expected date of confinement in such form and at such time as may be prescribed ; and
  • (b) where she commences work after her confinement but within the maternity pay period, with such additional information as may be prescribed.
7

Where a woman asks an employer or former employer of hers to provide her with a written statement, in respect of a period before the request is made, of one or more of the following—

  • (a) the weeks within that period which he regards as weeks in respect of which he is liable to pay statutory maternity pay to the woman ;
  • (b) the reasons why he does not so regard the other weeks in that period ; and
  • (c) his opinion as to the amount of statutory maternity pay to which the woman is entitled in respect of each of the weeks in respect of which he regards himself as liable to make a payment,

the employer or former employer shall, to the extent to which the request was reasonable, comply with it within a reasonable time.

8

Regulations—

  • (a) may require employers to maintain such records in connection with statutory maternity pay as may be prescribed ;
  • (b) may provide for—
  • (i) any woman claiming to be entitled to statutory maternity pay; or
  • (ii) any other person who is a party to proceedings arising under this Act relating to statutory maternity pay,

to furnish to the Secretary of State, within a prescribed period, any information required for the determination of any question arising in connection therewith ; and

  • (c) may require persons who have made payments of statutory maternity pay to furnish to the Secretary of State such documents and information, at such time, as may be prescribed.

Provision of information by Secretary of State

9

Where the Secretary of State considers that it is reasonable for information held by him to be disclosed to a person liable to make payments of statutory maternity pay for the purpose of enabling that person to determine—

  • (a) whether a maternity pay period exists in relation to a woman who is or has been an employee of his; and
  • (b) if it does, the date of its commencement and the weeks in it in respect of which he may be liable to pay statutory maternity pay,

he may disclose the information to that person.

Statutory maternity pay to count as remuneration for purposes of Social Security Act 1975

10

For the purposes of section 3 of the Social Security Act 1975 (meaning of " earnings"), any sums paid to, or for the benefit of, a woman in satisfaction (whether in whole or in part) of any entitlement of hers to statutory maternity pay shall be treated as remuneration derived from employed earner's employment.

Relationship with benefits and other payments etc.

11

Any day which falls within the maternity pay period shall not be treated for the purposes of the Social Security Act 1975 or the Social Security Pensions Act 1975 as a day of unemployment or of incapacity for work for the purpose of determining whether it forms part of a period of interruption of employment.

12
  • (1) Subject to sub-paragraphs (2) and (3) below, any entitlement to statutory maternity pay shall not affect any right of a woman in relation to remuneration under any contract of service(" contractual remuneration ").
  • (2) Subject to sub-paragraph (3) below—
  • (a) any contractual remuneration paid to a woman by an employer of hers in respect of a week in the maternity pay period shall go towards discharging any liability of that employer to' pay statutory maternity pay to her in respect of that week ; and
  • (b) any statutory maternity pay paid by an employer to a woman who is an employee of his in respect of a week in the maternity pay period shall go towards discharging any liability of that employer to pay contractual remuneration to her in respect of that week.
  • (3) Regulations may make provision as to payments which are, and those which are not, to be treated as contractual remuneration for the purposes of sub-paragraphs (1) and (2) above.

PART II — Amendments of Social Security Act 1975

13

For sections 22 and 23 there shall be substituted—

(22) (1) A woman shall be entitled to a maternity allowance at the weekly rate specified in relation thereto in Schedule 4, Part I, paragraph 4, if— (a) she satisfies the condition specified in section 46(2)(c) of the Social Security Act 1986; and (b) she has been engaged in employment as an employed or self-employed earner for at least 26 weeks in the 52 weeks immediately preceding the 14th week before the expected week of confinement; and (c) she satisfies the contribution condition for a maternity allowance specified in Schedule 3, Part I, paragraph 3 ; and (d) she is not entitled to statutory maternity pay for the same week in respect of the same pregnancy. (2) Subject to the following provisions of this section, a maternity allowance shall be payable for the period ("the maternity allowance period") which, if she were entitled to statutory maternity pay, would be the maternity 'pay period under section 47 of the Social Security Act 1986. (3) Regulations may provide— (a) for disqualifying a woman for receiving a maternity allowance if— (i) during the maternity allowance period she does any work in employment as an employed or self-employed earner or fails without good cause to observe any prescribed rules of behaviour ; or (ii) at any time before she is confined she fails without good cause to attend for, or submit herself to, any medical examination required in accordance with the regulations ; (b) that this section and Schedule 3, Part I, paragraph 3 shall have effect subject to prescribed modifications in relation to cases in which a woman has been confined and— (i) has not made a claim for a maternity allowance in expectation of that confinement (other than a claim which has been disallowed) ; or (ii) has made a claim for maternity allowance in expectation of that confinement (other than a claim which has been disallowed), but she was confined more than 11 weeks before the expected week of confinement. (4) Any day which falls within the maternity allowance period shall be treated for the purposes of this Part of this Act as a day of incapacity for work. (5) Where for any purpose of this Part of this Act or of regulations it is necessary to calculate the daily rate of a maternity allowance— (a) Sunday or such other day in each week as may be prescribed shall be disregarded ; and (b) the amount payable by way of that allowance for any other day shall be taken as £th of the weekly rate of the allowance. (6) In this section " confinement" and " confined " are to be construed in accordance with section 50 of the Social Security Act 1986. (7) The fact that the mother of a child is being paid maternity allowance shall not be taken into consideration by any court in deciding whether to order payment of expenses incidental to the birth of the child.

.

14

The following paragraph shall be substituted for paragraph 3 of Part I of Schedule 3—

(3) The contribution condition for a maternity allowance is— (a) that the claimant must in respect of at least 26 weeks in the 52 weeks immediately preceding the 14th week before the expected week of confinement have actually paid contributions of a relevant class ; and (b) in the case of Class 1 contributions, that they were not secondary contributions and were not paid at the reduced rate.

.

PART III — Abolition of Maternity Pay and Winding-up of Maternity Pay Fund

15

The provisions of Part III of the Employment Protection (Consolidation) Act 1978 shall cease to have effect so far as they relate to maternity pay.

16

A woman who is entitled to maternity pay on the corning into force of paragraph 15 above shall continue to be so entitled notwithstanding that paragraph; but a woman who continues to be entitled to maternity pay by virtue of this paragraph shall not be entitled to statutory maternity pay in respect of any week as respects which she is entitled to maternity pay.

17
  • (1) The assets and liabilities of the Maternity Pay Fund (including, in particular, liabilities of the Secretary of State in respect of sums advanced under section 38 of the Employment Protection (Consolidation) Act 1978 or claims under section 39 or 40 of that Act) immediately before the relevant date shall become assets and liabilities of the National Insurance Fund ; and on that date the Maternity Pay Fund shall cease to exist.
  • (2) Not later than such date as the Treasury may direct the Secretary of State shall prepare an account in such form as the Treasury may direct showing the state of the Maternity Pay Fund on the relevant date.
  • (3) The Secretary of State shall send to the Comptroller and Auditor General a copy of the account prepared under sub-paragraph (2) above; and the Comptroller and Auditor General shall examine, certify and report on the account and lay copies of it and of his report before each House of Parliament.
  • (4) In this paragraph " the relevant date " means such date in the period of 12 months ending on 5th April 1988 as the Secretary of State may, with the consent of the Treasury, determine.

SCHEDULE 5

Part I — Amendment of Enactments

Social Security Act 1973 (c. 38)

1

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Social Security Act 1975 (c. 14)

2

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3

The following subsection shall be substituted for subsection (1) of section 96 of that Act (review of certain decisions of Secretary of State)—

(1) Subject to subsection (2) below, the Secretary of State may review any decision given by him on any question within section 93(1) above if— (a) new facts have been brought to his notice; or (b) he is satisfied that the decision— (i) was given in ignorance of some material fact; (ii) was based on a mistake as to some material fact; or (iii) was erroneous in point of law.

.

4

The following subsections shall be substituted for subsection (2) of section 98 of that Act (claims and questions to be submitted to adjudication officer)—

(2) Subsection (1) above does not apply to any question which falls to be determined otherwise than by an adjudication officer. (2A) If— (a) a person submits a question relating to the age, marriage or death of any person ; and (b) it appears to the adjudication officer that the question may arise if the person who has submitted it to him submits a claim for benefit, the adjudication officer may determine the question.

.

5

The following subsection shall be substituted for subsection (2) of section 99 of that Act (decision of adjudication officer)—

(2) Subject to section 103 below (reference of special questions), the adjudication officer may decide a claim or question himself or refer it to a social security appeal tribunal.

.

6

In section 100 of that Act (appeal to social security appeal tribunal)—

  • (a) in subsection (1), the words " adversely to the claimant" shall be omitted;
  • (b) in subsection (2), for the words from " notified " to the end there shall be substituted the words " given any such notification of a decision and of his right of appeal under this section as may be prescribed. " ;
  • (c) for the words from the beginning of subsection (3) to the end of paragraph (b) there shall be substituted the words " Where in connection with the decision of the adjudication officer there has arisen any question which under or by virtue of this Act falls to be determined otherwise than by an adjudication officer " ;
  • (d) the following subsection shall be substituted for subsection (4)—

(4) Regulations may make provision as to the manner in which, and the time within which, appeals are to be brought.

;

  • (e) the following subsection shall be substituted for subsection (7)—

(7) Where an adjudication officer has determined that any amount is recoverable under or by virtue of section 27 or 53 of the Social Security Act 1986 (over payments) any person from whom he has determined that it is recoverable shall have the same right of appeal to a social security appeal tribunal as a claimant.

.

7
  • (1) At the end of subsection (1) of section 101 of that Act (appeal from tribunal to Commissioner) there shall be added the words " on the ground that the decision of the tribunal was erroneous in point of law. ".
  • (2) The following paragraph shall be substituted for paragraph (d) of subsection (2) of that section—

(d) a person from whom it is determined that any amount is recoverable under or by virtue of section 27 or 53 of the Social Security Act 1986.

.

  • (3) The following subsections shall be substituted for subsection (5) of that section—

(5) Where the Commissioner holds that the decision was erroneous in point of law— (a) he shall have power— (i) to give the decision which he considers the tribunal should have given, if he can do so without making fresh or further findings of fact; or (ii) if he considers it expedient, to make such findings and to give such decision as he considers appropriate in the light of them ; and (b) in any other case he shall refer the case to a tribunal with directions for its determination. (5A) No appeal lies under this section without the leave— (a) of the person who was the chairman of the tribunal when the decision was given or, in a case prescribed by regulations, the leave of some other chairman of a social security appeal tribunal; or (b) subject to and in accordance with regulations, of a Commissioner. (5B) Regulations may make provision as to the manner in which, and the time within which, appeals are to be brought and applications made for leave to appeal.

.

8

The following subsection shall be substituted for subsection (2) of section 102 of that Act (question first arising on appeal)—

(2) Subsection (1) above does not apply to any question which under or by virtue of this Act falls to be determined otherwise than by an adjudication officer.

.

9

The following section shall be substituted for section 103 of that Act—

(103) (1) Subject to subsection (2) below— (a) if on consideration of any claim or question an adjudication officer is of opinion that there arises any question which under or by virtue of this Act falls to be determined otherwise than by an adjudication officer, he shall refer the question for such determination; and (b) if on consideration of any claim or question a social security appeal tribunal or a Commissioner is of opinion that any such question arises, the tribunal or Commissioner shall direct it to be referred by an adjudication officer for such determination. (2) The person or tribunal making the reference shall then deal with any other question as if the referred question had not arisen. (3) The adjudication officer, tribunal or Commissioner may— (a) postpone the reference of, or dealing with, any question until other questions have been determined ; (b) in cases where the determination of any question disposes of a claim or any part of it make an award or decide that an award cannot be made, as to the claim or that part of it, without referring or dealing with, or before the determination of, any other question.

.

10

In section 104 of that Act (review of decisions of adjudication officers, tribunals or Commissioner)—

  • (a) the following subsection shall be substituted for subsection (1)—

(1) Any decision under this Act of an adjudication officer, a social security appeal tribunal or a Commissioner may be reviewed at any time by an adjudication officer, or, on a reference by an adjudication officer, by a social security appeal tribunal, if— (a) the officer or tribunal is satisfied that the decision was given in ignorance of, or was based on a mistake as to, some material fact; or (b) there has been any relevant change of circumstances since the decision was given; or (c) the decision was based on a decision of a question which under or by virtue of this Act falls to be determined otherwise than by an adjudication officer, and the decision of that question is revised, but regulations may provide that a decision may not be reviewed on the ground mentioned in paragraph (a) above unless the officer or tribunal is satisfied as mentioned in that paragraph by fresh evidence.

;

  • (b) in subsection (1A), the words " in prescribed circumstances " shall cease to have effect;
  • (c) the following subsection shall be inserted after subsection (3)—

(3A) Regulations may provide for enabling or requiring, in prescribed circumstances, a review under this section notwithstanding that no application under subsection (2) has been made.

; and

  • (d) the following subsection shall be added after subsection (4)—

(5) Regulations— (a) may prescribe what are, or are not, relevant changes of circumstances for the purposes of subsection (1)(b) above; and (b) may make provision restricting the payment of any benefit, or any increase of benefit, to which a person would, but for this subsection, be entitled by reason of a review in respect of any period before the review.

.

11
  • (1) In section 106(1) of that Act (review of decision of Attendance Allowance Board) in paragraph (b) before the word " within " there shall be inserted the words " on an application made ".
  • (2) The following paragraph shall be inserted after that paragraph—

(bb) without an application review such a determination on any ground within the prescribed period ;

.

12

In section 107(6) of that Act (declaration that accident is an industrial accident)—

  • (a) the words " or was not" shall be inserted after the words " accident was " ; and
  • (b) the words " by fresh evidence " and paragraph (b) shall cease to have effect.
13

In section 109(3) of that Act (medical appeals and references) after the words " by a medical appeal tribunal," there shall be inserted the words " or, if the adjudication officer is of the opinion that any such decision ought to be so considered, ".

14

In section 110 of that Act (review of medical decisions)—

  • (a) in subsection (1), the words " by fresh evidence " shall cease to have effect; and
  • (b) the following subsections shall be inserted after that subsection—

(1A) Any decision under this Part of this Act of an adjudicating medical practitioner may be reviewed at any time by such a practitioner if he is satisfied that the decision was erroneous in point of law. (1B) Regulations may provide that a decision may not be reviewed under subsection (1) above unless the adjudicating medical practitioner is satisfied as mentioned in that subsection by fresh evidence.

.

15

In section 112 of that Act (appeal etc. on question of law to Commissioner)—

  • (a) in subsection (1), the following paragraph shall be inserted before paragraph (a)—

(za) an adjudication officer ; or

; and

  • (b) in subsection (3), for the words from " without the leave " to " and regulations" there shall be substituted—

without the leave— (a) of the person who was the chairman of the medical appeal tribunal when the decision was given or, in a case prescribed by regulations, the leave of some other chairman of a medical appeal tribunal; or (b) subject to and in accordance with regulations, of a Commissioner, and regulations

.

16

In section 114 of that Act (regulations as to determination of questions)—

  • (a) the following subsections shall be inserted after subsection (2A)—

(2B) Regulations under subsection (1) above may provide for the review by the Secretary of State of decisions on questions determined by him. (2C) The Lord Chancellor may by regulations provide— (a) for officers authorised— (i) by the Lord Chancellor ; or (ii) in Scotland, by the Secretary of State, to determine any question which is determinable by a Commissioner and which does not involve the determination of any appeal, application for leave to appeal or reference; (b) for the procedure to be followed by any such officer in determining any such question; (c) for the manner in which determinations of such questions by such officers may be called in question. (2D) A determination which would have the effect of preventing an appeal, application for leave to appeal or reference being determined by a Commissioner is not a determination of the appeal, application or reference for the purposes of subsection (2C) above.

; and

  • (b) subsections (3) and (4) shall cease to have effect.
17

The following subsection shall be inserted after section 166(5) of that Act (regulations)—

(5A) Where the Lord Chancellor proposes to make regulations under this Act it shall be his duty to consult the Lord Advocate with respect to the proposal.

.

18

In paragraph 2(2) of Schedule 12 to that Act (appointment of members of medical appeal tribunals) for the words " Secretary of State " there shall be substituted the word " President ".

19

In Schedule 13 to that Act (provision which may be made by procedure regulations)—

  • (a) the following paragraph shall be inserted after paragraph 1—

(1A) Provision as to the striking out of proceedings for want of prosecution.

;

  • (b) in paragraph 10, for the words from " the determination " to the end there shall be substituted the words " a determination. ".
20

In Schedule 20 to that Act (glossary of expressions), for the definition of " Regulations " there shall be substituted the following definition—

"Regulations" In relation to regulations with respect to proceedings before the Commissioners (whether for the determination of any matter or for leave to appeal to or from the Commissioners) and to regulations under section 114(2C) above regulations made by the Lord Chancellor under this Act and in relation to other regulations, regulations made by the Secretary of State under this Act.

.

Part II — Questions for Determination by the Secretary of State

The questions referred to in section 52(2) above are—

SCHEDULES 6, 7

Interpretation

1
  • (1) In this Schedule " qualifying benefit" means—
  • (a) any of the following benefits under the Social Security Act 1975.—
  • (i) a retirement pension;
  • (ii) an invalidity pension ;
  • (iii) a widowed mother's allowance or widow's pension ;
  • (iv) a severe disablement allowance;
  • (v) an invalid care allowance;
  • (vi) an industrial death benefit by way of widow's or widower's pension;
  • (b) an attendance allowance ;
  • (c) an unemployability supplement or allowance ;
  • (d) a war disablement pension ;
  • (e) a war widow's pension;
  • (f) income support.
  • (2) In this Schedule—
  • " attendance allowance " means— an attendance allowance under section 35 of the Social Security Act 1975 ; an increase of disablement pension under section 61 or 63 of that Act (increases in respect of the need for constant attendance); a payment under regulations made in exercise of the power in section 159(3X6) of that Act (constant attendance allowance and an increase for exceptionally severe disablement for certain pre-1948 cases) ; an increase of allowance under Article 8 of the Pneumoconiosis, Byssinosis and Miscellaneous Diseases Benefit Scheme 1983 (constant attendance allowance for certain persons to whom that Scheme applies) or under the corresponding provision of any Scheme which may replace that Scheme ; an allowance in respect of constant attendance on account of disablement for which a person is in receipt of war disablement pension, including an allowance in respect of exceptionally severe disablement;
  • " married couple " and " unmarried couple" are to be construed in accordance with Part II of this Act and any regulations made under it.
  • " pensionable age " means— in the case of a man, the age of 65 ; in the case of a woman, the age of 60 ;
  • " retirement pension " includes graduated retirement benefit, if paid periodically ;
  • " unemployability supplement or allowance " means— an unemployability supplement payable under section 58 of the Social Security Act 1975 by virtue of paragraph 4 of Schedule 3 to this Act; or any corresponding allowance payable— by virtue of section 7(3)(a) of the Industrial Injuries and Diseases (Old Cases) Act 1975 ; by way of supplement to retired pay or pension exempt from income tax under section 365(1) of the Income and Corporation Taxes Act 1970; under the Personal Injuries (Emergency Provisions) Act 1939 ; or by way of supplement to retired pay or pension under the Polish Resettlement Act 1947 ; and each of the following expressions, namely "attendance allowance ", " unemployability supplement or allowance", " war disablement pension" and "war widow's pension", includes any payment which the Secretary of State accepts as being analogous to it.
  • (3) In this Schedule " the relevant week ", in relation to any year, means the week beginning with the first Monday in December or such other week as may be specified in an order made by the Secretary of State.

Entitlement

2
  • (1) Any person who in any year—
  • (a) is present or ordinarily resident in the United Kingdom or any other member state at any time during the relevant week; and
  • (b) is entitled to a payment of a qualifying benefit in respect of a period which includes a day in that week or is to be treated as entitled to a payment of a qualifying benefit in respect of such a period,

shall, subject to the following provisions of this Schedule, be entitled to payment under this sub-paragraph in respect of that year.

  • (2) Subject to the following provisions of this Schedule, any person who is a member of a married or unmarried couple and is entitled to a payment under sub-paragraph (1) above in respect of a year shall also be entitled to payment under this sub-paragraph in respect of that year if—
  • (a) both members of the couple have attained pensionable age not later than the end of the relevant week ; and
  • (b) the other member of the couple satisfies the condition mentioned in sub-paragraph (1)(a) above; and
  • (c) either—
  • (i) he is entitled or treated as entitled, in respect of the other member of the couple to an increase in the payment of the qualifying benefit; or
  • (ii) the only qualifying benefit to which he is entitled is income support.
  • (3) A payment under sub-paragraph (1) or (2) above—
  • (a) is to be made by the Secretary of State ; and
  • (b) is to be of £10 or such larger sum as the Secretary of State may by order specify.
  • (4) Where the only qualifying benefit to which a person is entitled is income support, he shall not be entitled to a payment under sub-paragraph (1) above unless he has attained pensionable age not later than the end of the relevant week.
  • (5) Only one sum shall be payable in respect of any person.
3
  • (1) For the purposes of paragraph 2 above the Channel Islands, the Isle of Man and Gibraltar shall be treated as though they were part of the United Kingdom.
  • (2) A person shall be treated for the purposes of paragraph 2(1)(b) above as entitled to a payment of a qualifying benefit if he would be so entitled—
  • (a) in the case of a qualifying benefit other than income support—
  • (i) but for the fact that he or, if he is a member of a married or unmarried couple, the other member is entitled to receive some other payment out of public funds ;
  • (ii) but for the operation of section 30(1) of the Social Security Act 1975 ;
  • (iii) but for the fact that he has not made a claim for the payment;
  • (b) in the case of income support, but for the fact that his income or, if he is a member of a married or unmarried couple, the income of the other member of the couple was exceptionally of an amount which resulted in his having ceased to be entitled to income support.
  • (3) A person shall be treated for the purposes of paragraph 2(2)(c)(i) above as entitled in respect of the other member of the couple to an increase in a payment of qualifying benefit if he would be so entitled—
  • (a) but for the fact that he or the other member is entitled to receive some other payment out of public funds ;
  • (b) but for the operation of any provision of section 30(1), 45(2) or (2A) or 66(4) of the Social Security Act 1975 or any regulations made under section 66(3) of that Act whereby entitlement to benefit is affected by the amount of a person's earnings in a given period ; or
  • (c) but for such terms as are mentioned in sub-paragraph (2)(a)(iii) above ; or
  • (d) but for the fact that he has not made a claim for the increase.
  • (4) For the purposes of paragraph 2 above a person shall be deemed not to be entitled to a payment of a war disablement pension unless not later than the end of the relevant week—
  • (a) he has attained the age of 70 in the case of a man or 65 in the case of a woman ; or
  • (b) he is treated under section 27(3) of the Social Security Act 1975 as having retired from regular employment.
  • (5) A sum payable under paragraph 2 above shall not be treated as benefit for the purposes of any enactment or instrument under which entitlement to the relevant qualifying benefit arises or is to be treated as arising.
  • (6) A payment and the right to receive a payment—
  • (a) under paragraph 2 above or any enactment corresponding to it in Northern Ireland ; or
  • (b) under regulations relating to widows which are made by the Secretary of State under any enactment relating to police and which contain a statement that the regulations provide for payments corresponding to payments under that paragraph,

shall be disregarded for all purposes of income tax and for the purposes of any enactment or instrument under which regard is had to a person's means.

Administration of payments

4
  • (1) A determination by the competent authority that a person is entitled or not entitled to payment of a qualifying benefit in respect of a period which includes a day in the relevant week shall be conclusive for the purposes of paragraph 2 above; and in this sub-paragraph " competent authority " means, in relation to a payment of any description of qualifying benefit, an authority who ordinarily determines whether a person is entitled to such a payment
  • (2) Any question arising under this Schedule other than one determined or falling to be determined under sub-paragraph (1) above shall be determined by the Secretary of State whose decision shall except as provided by the following sub-paragraph be final.
  • (3) The Secretary of State may reverse a decision under sub-paragraph (2) above on new facts being brought to his notice or if he is satisfied that the decision was given in ignorance of, or was based on a mistake as to, some material fact.

SCHEDULE 7

Interpretation

1

In this Schedule—

  • " the former National Insurance Acts" means the National Insurance Act 1946 and the National Insurance Act 1965 ; and
  • " the former Industrial Injuries Acts " means the National Insurance (Industrial Injuries) Act 1946 and the National Insurance (Industrial Injuries) Act 1965.

Prevention of duplication of payments

2

Section 27 above shall have effect in relation to supplementary benefit as it has effect in relation to income support.

Claims and Payments

3
  • (1) Section 51 above shall have effect in relation to the benefits specified in sub-paragraph (2) below as it has effect in relation to the benefits to which it applies by virtue of subsection (2).
  • (2) The benefits mentioned in sub-paragraph (1) above are benefits under—
  • (a) the former National Insurance Acts ;
  • (b) the former Industrial Injuries Acts ;
  • (c) the National Assistance Act 1948 ;
  • (d) the Supplementary Benefit Act 1966 ;
  • (e) the Supplementary Benefits Act 1976 ;
  • (f) the Family Income Supplements Act 1970.

Adjudication

4
  • (1) Section 52(3) above shall have effect for the purposes of the benefits specified in paragraph 3(2) above as it has effect for the purposes of benefit under the Social Security Act 1975.
  • (2) Procedure regulations made under section 115 of the Social Security Act 1975 by virtue of sub-paragraph (1) above may make different provision in relation to each of the benefits specified in paragraph 3(2) above.

Overpayments

5
  • (1) Section 53 above shall have effect in relation to the benefits specified in paragraph 3(2) above as it has effect in relation to the benefits to which it applies by virtue of subsection (10).
  • (2) The reference to housing benefit in section 29(4) includes a reference to housing benefits under Part II of the Social Security and Housing Benefits Act 1982.
6

Section 56 above shall have effect as if the benefit Acts included—

  • (a) the National Assistance Act 1948 ;
  • (b) the Supplementary Benefit Act 1966 ;
  • (c) the Supplementary Benefits Act 1976 ;
  • (d) the Family Income Supplements Act 1970.

Inspection

7

Section 58 above shall have effect as if the benefit Acts included the Acts mentioned in paragraph 6(c) and (d) above.

Up-rating

8

Section 63 above shall have effect as if the sums mentioned in subsection (1) included sums payable by way of benefit under—

  • (a) the Family Income Supplements Act 1970 ;
  • (b) the Supplementary Benefits Act 1976 ; and
  • (c) Part II of the Social Security and Housing Benefits Act 1982.

SCHEDULE 8

Social Security Act 1975 (c. 14)

1

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2
  • (1) In subsection (2) of section 13 (contribution conditions and the earnings factor) for the words from "from" to "above" there shall be substituted the words "in respect of each tax year from those of his earnings upon which primary Class 1 contributions have been paid or treated as paid and from Class 2 and Class 3 contributions".
  • (2) In subsection (3) of that section, for the words from " primary " to the end there shall be substituted the words " earnings upon which primary Class 1 contributions are paid at the reduced rate ".
  • (3) In subsection (4), for the words " contributions of any class " there shall be substituted the words " earnings or Class 2 or Class 3 contributions ".
  • (4) In subsection (5)—
  • (a) for the word " contributions ", in the first place where it occurs, there shall be substituted the words " earnings or Class 2 or Class 3 contributions " ;
  • (b) paragraph (a) shall be omitted ; and
  • (c) few the words from " shall be derived " to the end of the subsection there shall be substituted the words "may be derived—
  • (i) from earnings upon which primary Class 1 contributions have been paid or treated as paid ;
  • (ii) from earnings which have been credited ;
  • (iii) from contributions of different classes paid or credited in the same tax year;
  • (iv) by any combination of the methods mentioned in sub-paragraphs (i) to (iii) above.".
  • (5) The following subsection shall be inserted after subsection (5A)—

(5B) Regulations may provide for requiring persons to maintain, in such form and manner as may be prescribed, records of such earnings paid by them as are relevant for the purpose of calculating earnings factors, and to retain such records for so long as may be prescribed.

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  • (6) In subsection (6)(c)—
  • (a) for the words " person's contribution of any class or classes " there shall be substituted the word " person " ;
  • (b) for the words " those contributions" there shall be substituted the words " his earnings upon which primary Class 1 contributions have been paid or treated as paid and from his Class 2 and Class 3 contributions ".
3
  • (1) The following paragraph shall be substituted for sub-paragraph (2)(b) of paragraph 1 (unemployment and sickness benefit) of Schedule 3 (contribution conditions)—

(b) the earnings factor derived— (i) in the case of unemployment benefit, from earnings upon which primary Class 1 contributions have been paid or treated as paid; and (ii) in the case of sickness benefit, from such earnings or from Class 2 contributions, must be not less than that year's lower earnings limit multiplied by 25.

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  • (2) In sub-paragraph (3)(a) of that paragraph, after the word " class " there shall be inserted the words " or been credited with earnings ".
  • (3) The following paragraph shall be substituted for sub-paragraph (3)(b)—

(b) the earnings factor derived— (i) in the case of unemployment benefit, from earnings upon which primary Class 1 contributions have been paid or treated as paid or from earnings credited ; and (ii) in the case of sickness benefit, from such earnings or from Class 2 contributions, must be not less than that year's lower earnings limit multiplied by 50.

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  • (4) In sub-paragraph (1)(b) of paragraph 4 of that Schedule for the words " those contributions " there shall be substituted the words " earnings upon which primary Class 1 contributions have been paid or treated as paid and from Class 2 and Class 3 contributions ".
  • (5) In sub-paragraph (2)(b) of paragraph 5 of that Schedule (widowed mother's allowance, widow's pension and retirement pensions) for the words " those contributions " there shall be substituted the words " earnings upon which such of those contributions as are primary Class 1 contributions were paid or treated as paid and any Class 2 or Class 3 contributions ".
  • (6) The following paragraph shall be substituted for sub-paragraph (3)(b) of that paragraph—

(b) in the case of each of those years, the earnings factor derived from— (i) any earnings upon which such of those contributions as are primary Class 1 contributions were paid or treated as paid or earnings credited ; and (ii) any Class 2 or Class 3 contributions for the year, must be not less than the qualifying earnings factor for the year.

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  • (7) In paragraph 8(3) (satisfaction of certain contribution conditions in early years of contribution) for the words " his contributions of a relevant class " there shall be substituted the words " the aggregate of his earnings upon which primary Class 1 contributions were paid or treated as paid and from Class 2 contributions ".

Social Security Pensions Act 1975 (c. 60)

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6

In subsection (1) of section 5 of that Act (voluntary contributions) after the word " from " there shall be inserted the words " earnings upon which Class 1 contributions have been paid or treated as paid or from Class 2 ".

7
  • (1) In section 6 (rate of Category A retirement pension)—
  • (a) in subsection (5), for the words " contributions actually paid by him in respect of that year " there shall be substituted the words " earnings upon which primary Class 1 contributions were paid or treated as paid in respect of that year and earnings factors derived from Class 2 and Class 3 contributions actually paid in respect of it " ; and
  • (b) subsection (5A) shall be omitted.
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10

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Social Security (Miscellaneous Provisions) Act 1977 (c. 5)

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SCHEDULE 9

Part I — . . .

1

After section 112 of the Social Security (Northern Ireland) Act 1975 there shall be inserted the following section—

(112A) (1) Subject to this section, an appeal lies to a Commissioner from any decision of a medical appeal tribunal on the ground that the decision is erroneous in point of law, at the instance of— (a) an adjudication officer; or (b) the claimant; or (c) a trade union of which the claimant was a member at the time of the relevant accident or, in a case relating to severe disablement allowance, at the prescribed time ; or (d) the Department. (2) Subsection (1) above, as it applies to a trade union, applies also to any other association which exists to promote the interests and welfare of its members. (3) No appeal lies under subsection (1) above without the leave— (a) of the person who was the chairman of the medical appeal tribunal when the decision was given or, in a case prescribed by regulations, the leave of some other chairman of a medical appeal tribunal; or (b) subject to and in accordance with regulations, of a Commissioner, and regulations may make provision as to the manner in which, and the time within which, appeals are to be brought and applications made for leave to appeal. (4) Where a question of law arises in a case before a medical appeal tribunal, the tribunal may refer that question to a Commissioner for his decision. (5) On any such appeal or reference, the question of law arising for the decision of the Commissioner and the facts on which it arises shall be submitted for his consideration in the prescribed manner; and the medical appeal tribunal on being informed in the prescribed manner of his decision on the question of law shall give, confirm or revise their decision on the accordingly. (6) No appeal lies under subsection (1) from a decision of a medical appeal tribunal given before the date of the coming into operation of Part I of Schedule 9 to the Social Security Act 1986.

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Part II — Transfer of Functions Relating to Commissioners

2
  • (1) In this Part—
  • the Commissioners” means the Chief and other Social Security Commissioners for Northern Ireland;
  • the Department”, except in the expression “the Department of Finance and Personnel”, means the Department of Health and Social Services for Northern Ireland.
  • (2) The references in paragraphs 3(1)(b) and 4 to service by any person as a Commissioner include references to service treated as service as a Commissioner under paragraph 5(2) of Schedule 10 to the Social Security (Northern Ireland) Act 1975 (service under former enactments).
3
  • (1) The following functions of the Department are hereby transferred to the Lord Chancellor—
  • (a) the functions of the Department under paragraphs 4, 6 and 7 of Schedule 10 to the Social Security (Northern Ireland) Act 1975 (payment of remuneration, expenses, and pensions of the Commissioners);
  • (b) the functions of the Department under the provisions of the Judicial Pensions Act (Northern Ireland) 1951 (lump sums and widow’s and children’s pensions) and paragraph 3 of Schedule 3 to the Administration of Justice Act 1973 (increase of certain widow’s and children’s pensions) so far as those provisions apply to service by any person as a Commissioner;
  • (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • (d) the making, under or for the purposes of the enactments mentioned in sub-paragraph (2) below, of regulations with respect to proceedings before the Commissioners, whether for the determination of any matter or for leave to appeal to or from the Commissioners.
  • (2) The enactments referred to in sub-paragraph (1)(d) above are—
  • (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • (h) Article 6 of the Forfeiture (Northern Ireland) Order 1982;
  • (j) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
  • (1) The functions of the Department of Finance and Personnel, so far as they relate to the functions transferred by paragraph 3 above, are hereby transferred to the Treasury.
  • (2) The functions of the Department of Finance and Personnel under the Judicial Pensions Act (Northern Ireland) 1951, so far as it applies to service by any person as a Commissioner, are hereby transferred to the Treasury.
5

The functions of the Secretary of State under paragraph 7(5) of Schedule 10 to the Social Security (Northern Ireland) Act 1975 (power of Secretary of State to require person retired on medical grounds to resume duties of Commissioner) are hereby transferred to the Lord Chancellor.

6

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7

Regulations made by the Lord Chancellor by virtue of this Part of this Schedule shall be subject to annulment in pursuance of a resolution of either House of Parliament in like manner as a statutory instrument and section 5 of the Statutory Instruments Act 1946 shall apply accordingly.

8
  • (1) Enactments and instruments passed or made before the coming into operation of this Part of this Schedule shall have effect, so far as may be necessary for the purpose or in consequence of the transfers effected by this Part as if—
  • (a) references to the Department or to the Secretary of State were references to the Lord Chancellor; and
  • (b) references to the Department of Finance and Personnel were references to the Treasury; and
  • (c) references to moneys appropriated by Measure of the Northern Ireland Assembly were references to money provided by Parliament and references to the Consolidated Fund of Northern Ireland were references to the Consolidated Fund of the United Kingdom.
  • (2) This Part of this Schedule shall not affect the validity of anything done (or having effect as done) by or in relation to the Department, the Department of Finance and Personnel or the Secretary of State before the coming into operation of this Part, and anything which at the time of the coming into operation of this Part is in process of being done by or in relation to either of those Departments or the Secretary of State may, if it relates to a function transferred by this Part, be continued by or in relation to the Lord Chancellor or the Treasury, as the case may require.
  • (3) Anything done (or having effect as done) by the Department, the Department of Finance and Personnel or the Secretary of State for the purpose of a function transferred by this Part of this Schedule, if in force at the coming into operation of this Part, shall have effect, as far as required for continuing its effect after the coming into operation of this Part, as if done by the Lord Chancellor or by the Treasury, as the case may require.
  • (4) The amendments specified in Part III of this Schedule are without prejudice to the generality of this paragraph.

Part III — Consequential Amendments

Judicial Pensions Act (Northern Ireland) 1951 (c. 20) (N.I.)

9

In section 16 of the Judicial Pensions Act (Northern Ireland) 1951 (recommendation required for payments conditional on eligibility for Commissioners’ pensions) for the words “Department of Health and Social Services” there shall be substituted the words “Lord Chancellor”.

Social Security (Northern Ireland) Act 1975 (c. 15)

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  • (1) In paragraphs 4, 6 and 7 of Schedule 10 to the Social Security (Northern Ireland) Act 1975 (payment of remuneration, expenses and pensions of the Commissioners)—
  • (a) for the word “Department” in each place where it occurs (except in the expression “Department of Finance”) there shall be substituted the words “Lord Chancellor”;
  • (b) for the words “Department of Finance” in each place where they occur there shall be substituted the word “Treasury”.
  • (2) In sub-paragraph (1) of the said paragraph 6 for the words “moneys appropriated by Measure of the Northern Ireland Assembly” there shall be substituted the words “money provided by Parliament”.
  • (3) In sub-paragraph (5) of the said paragraph 7 for the words “Secretary of State” there shall be substituted the words “Lord Chancellor”.

Social Security Act 1980 (c. 30)

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12

In paragraph 21 of Schedule 3 to that Act (regulations in Northern Ireland corresponding to regulations in Great Britain made by the Secretary of State not requiring prior submission to Social Security Advisory Committee), after the words "Secretary of State" there shall be inserted the words " or the Lord Chancellor ".

Forfeiture (Northern Ireland) Order 1982 (S.I. 1982/1082 (N.I. 14))

13

In Article 6(2) of the Forfeiture (Northern Ireland) Order 1982 (regulations for purposes of determinations by Social Security Commissioner), for the words “Department of Health and Social Services” there shall be substituted the words “Lord Chancellor”.

SCHEDULE 10

Part I — Pensions

Social Security Act 1973 (c. 38)

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The Social Security Act 1973 shall be amended as follows.

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Social Security Act 1975 (c. 14)

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Social Security Pensions Act 1975 (c. 60)

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The Social Security Pensions Act 1975 shall be amended as follows.

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Employment Protection (Consolidation) Act 1978 (c. 44)

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National Assistance Act 1948 (c.29)

32
  • (1) In subsection (3) of section 22 of the National Assistance Act 1948 (charges to be made for local authority accommodation) for the words “(apart from any supplementation of his resources which he will receive under the Supplementary Benefits Act 1976” there shall be substituted the words “(disregarding income support)”.
  • (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
33

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