The Social Security Benefits Up-rating Order 1989

Type Statutory-Instrument
Publication 1989-01-10
State In force
Department Queen's Printer of Acts of Parliament
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Made: 10th January 1989

Coming into force

Now, therefore, the Secretary of State for Social Security, with the consent of the Treasury[^f00002] in exercise of the powers conferred upon him by section 63 of the Social Security Act 1986, and of all other powers enabling him in that behalf, hereby makes the following Order:

PART I — INTRODUCTION

Citation and commencement

1

Interpretation

2

In this Order, unless the context otherwise requires –

PART II — SOCIAL SECURITY BENEFITS

Alterations in rates or amounts of certain benefits under the 1975 Act

3

Increase of rates or amounts of certain benefits under the Pensions Act

4

Dates on which sums specified for rates or amounts of benefit under the 1975 Act or the Pensions Act are increased by this Order

5

Increase in rates of certain benefits under the Industrial Injuries and Diseases (Old Cases) Act 1975

6

In the Industrial Injuries and Diseases (Old Cases) Act 1975[^f00019] the sum of £24.75 referred to in section 2(6)(c) (maximum weekly rate of lesser incapacity allowance supplementing workmen’s compensation) and section 7(2)(b) (industrial diseases benefit schemes: weekly rate of allowance payable where disablement is not total) shall be increased; and from and including 12th April 1989 for that sum in section 2(6)(c), and from and including 13th April 1989 for that sum in section 7(2)(b), there shall be substituted the sum of £26.20.

Increase in rate of graduate retirement benefit and increments thereof

7

Sum specified for child benefit

8

In regulation 2 of the Child Benefit and Social Security (Fixing and Adjustment of Rates) Regulations 1976[^f00022] (weekly rates of child benefit) –

Statutory Sick Pay

9

Statutory Maternity Pay

10

The sum specified in regulation 6 of the Statutory Maternity Pay (General) Regulations 1986[^f00024] (lower rate of statutory maternity pay) shall be increased by the substitution for the sum of £34.25 of the sum of £36.25.

Earnings Limits

11

Statutory Sick Pay transitional provision

12

Where in relation to statutory sick pay a period of entitlement as between an employer and an employee is running at 6th April 1989 and the employee’s normal weekly earnings under the contract of service with that employer are not less than, or treated for the purpose of section 7(1) of the Social Security and Housing Benefits Act 1982 as not less than £79.50, they shall be treated as not less than £84.00 for the remainder of that period.

PART III — FAMILY CREDIT, INCOME SUPPORT AND HOUSING BENEFIT

Family Credit

13

In the Family Credit Regulations –

Sums prescribed for the purpose of Family Credit

14

The sums prescribed in Schedule 4 to the Family Credit Regulations (determination of maximum family credit), shall be increased as from 11th April 1989; and Schedule 4 shall accordingly have effect as set out in Schedule 2 to this Order.

Applicable amounts for Income Support

15

Income Support Transitional Protection

16

Sums which are special transitional additions to income support payable in accordance with regulation 15 of the Income Support (Transitional) Regulations 1987[^f00026] shall be increased by 4.7 per cent. of their amount apart from this Order.

The Relevant Sum for Income Support

17

In section 23(5)(b) of the 1986 Act[^f00027] (trade disputes: the relevant sum) the substituted sum is £18.50.

Applicable amounts for housing benefit (Housing Costs)

18

Applicable amounts for housing benefit (Community Charge rebates)

19

Transitional

20

Nothing in this Order shall affect the rate at which family credit is payable under any award running at 11th April 1989.

PART IV — REVOCATIONS

Revocations

21

Articles 2 to 10 of and the Schedule to the Social Security Benefits Up-rating (No. 2) Order 1987[^f00028] are hereby revoked in relation to any particular case as from the date on which the rates or amounts of benefit specified in relation to any benefit mentioned in Part II of this Order takes effect in relation to that case.

SCHEDULE 1 — SCHEDULE 4 TO THE 1975 ACT AS AMENDED BY THIS ORDER

SCHEDULE 2 — SCHEDULE 4 TO THE FAMILY CREDIT REGULATIONS AS AMENDED BY THIS ORDER

SCHEDULE 3 — PART I OF SCHEDULE 2 TO THE INCOME SUPPORT REGULATIONS AS AMENDED BY THIS ORDER

SCHEDULE 4 — PART IV OF SCHEDULE 2 TO THE INCOME SUPPORT REGULATIONS AS AMENDED BY THIS ORDER

SCHEDULE 5 — APPLICABLE AMOUNTS OF PERSONS IN RESIDENTIAL CARE AND NURSING HOMES

PART I — SUMS SPECIFIED IN SCHEDULE 4 TO THE INCOME SUPPORT REGULATIONS WHICH ARE INCREASED

(1) (2) (3)
Paragraph in Schedule 4 Specified Sum Substituted Sum
£ £
6(1)(a), (b), (c), (e)(ii) and (f) 130.00 weekly 140.00 weekly
(1)(d) 160.00 weekly 165.00 weekly
6(1)(e)(i) 190.00 weekly 200.00 weekly
7(a) 185.00 weekly 195.00 weekly
7(b) 200.00 weekly 205.00 weekly
7(c), (d)(ii) and (f) 185.00 weekly 190.00 weekly
7(d)(i) and (e) 230.00 weekly 235.00 weekly
11 17.50 23.00
13(a) and (b) 9.55 weekly 10.05 weekly
13(c) 6.20 weekly 7.00 weekly
13(d) 5.30 weekly 6.05 weekly
13(e) 3.45 weekly 4.10 weekly

PART II — OTHER SUMS SPECIFIED IN SCHEDULE 4 TO THE INCOME SUPPORT REGULATIONS

Paragraph in Schedule 4 Specified Sum
2(2)(b)(i) daily £1.10
2(2)(b)(ii) daily £1.55
2(2)(b)(iii) daily £1.55
6(2) weekly £155.00

SCHEDULE 6 — APPLICABLE AMOUNTS OF PERSONS IN HOSTELS

PART I — SUMS SPECIFIED IN SCHEDULE 5 TO THE INCOME SUPPORT REGULATIONS WHICH ARE INCREASED

(1) (2) (3)
Paragraph in Schedule 7 Specified Weekly Sum Substituted Weekly Sum
£ £
11(a) 11.50 13.25
11(b) and (c) 10.30 11.95
11(d) 6.20 7.00
11(e) 5.30 6.05
11(f) 3.45 4.10

PART II — OTHER SUMS SPECIFIED IN SCHEDULE 5 TO THE INCOME SUPPORT REGULATIONS

Paragraph in Schedule 5 Specified Sum
£
2(b)(i) daily 1.10
2(b)(ii) and (iii) daily 1.55
5(a) and (b)[^f00035] weekly 70.00
7 lower rate 17.50
higher rate 35.00
9 35.00

SCHEDULE 7 — APPLICABLE AMOUNTS IN SPECIAL CASES

PART I — SUMS SPECIFIED IN SCHEDULE 7 TO THE INCOME SUPPORT REGULATIONS WHICH ARE INCREASED

(1) (2) (3)
Paragraph in column (2) of Schedule 7 Specified Weekly Sum Substituted Weekly Sum
£ £
1(a), (b), (c)(i) and (d), 2 and 3 8.25 8.70
1(c)(ii) 16.50 17.40
10A[^f00036] 41.15, 32.90 and 8.25 respectively 43.60, 34.90 and 8.70 respectively
10B 41.15, 32.90 and 8.25 respectively 43.60, 34.90 and 8.70 respectively
10C[^f00037] 41.15, 32.90 and 8.25 respectively 43.60, 34.90 and 8.70 respectively
13(1) 41.15, 32.90 and 8.25 respectively 43.60, 34.90 and 8.70 respectively
13(2) 8.25 8.70
18(b) and (c) 8.25 8.70

PART II — OTHER SUMS SPECIFIED IN SCHEDULE 7 TO THE INCOME SUPPORT REGULATIONS

Paragraph in column (2) of Schedule 7 Specified Sum
7 Nil
8(a) Nil
16 80 per cent.
17 Nil

SCHEDULE 8 — OTHER APPLICABLE AMOUNTS SPECIFIED IN THE INCOME SUPPORT REGULATIONS

Provisions in Income Support Regulations Specified Sum
Regulation 22(1) Weekly applicable amount to be reduced by a sum equivalent to 40 per cent. of the relevant amount.
Regulation 22(2)[^f00038] £200.
Regulation 22(2) Weekly applicable amount to be reduced by a sum equivalent to 20 per cent. of the relevant amount.
Regulation 71(1)(a)(i) 90 per cent. of the amount applicable, or as the case may be, of the relevant amount.
Regulation 71(1)(b)(i) 90 per cent. of the amount so reduced, or as the case may be, of the relevant amount.
Regulation 71(1)(c)(i) 90 per cent. of the amount in respect of personal expenses.
Regulation 71(1)(c)(iii) 80 per cent. of the applicable amount in special cases.
Regulation 71(1)(d)(a) 90 per cent. of the applicable amount.
Schedule 3, paragraph 7(1)(a) and (b)(i) and (2) (penultimate line) 100 per cent. of the eligible interest.
Schedule 3, paragraph 7(1)(b)(ii), (2)(a) and (6) 50 per cent. of the eligible interest.
Schedule 3, paragraph 8(2) £500
Schedule 3, paragraph 9(5)(a)(ii) and (b)(ii) 20 per cent. of eligible rates.

SCHEDULE 9 — PART I OF SCHEDULE 2 TO THE HOUSING BENEFIT REGULATIONS AS AMENDED BY THIS ORDER

SCHEDULE 10 — PART IV OF SCHEDULE 2 TO THE HOUSING BENEFIT REGULATIONS AS AMENDED BY THIS ORDER

SCHEDULE 11 — PART II OF SCHEDULE 1 TO THE COMMUNITY CHARGE REBATES REGULATIONS AS AMENDED BY THIS ORDER

SCHEDULE 12 — PART IV OF SCHEDULE 1 TO THE COMMUNITY CHARGE REBATES REGULATIONS AS AMENDED BY THIS ORDER

Signed

Signed by authority of the Secretary of State for Social Security.

Skelmersdale — Parliamentary Under-Secretary of State, — Department of Social Security — 4th January 1989

We consent,

D. Lightbown — David Maclean — Two of the Lords Commissioners of Her Majesty’s Treasury — 10th January 1989

Explanatory note

(This note is not part of the Order)

This Order, a draft of which has been laid before and approved by resolution of each Houseof Parliament, is made as a consequence of a review under section 63(1) of the Social Security Act 1986 (“the 1986 Act”) and includes details of the sums mentioned in that section.

Part I relates to citation, commencement and interpretation. Part II relates to non-means tested benefits. Article 3 alters the benefits and increases of benefit (except age addition) specified in Parts I, III, IV and V of Schedule 4 to the Social Security Act 1975 (“the 1975 Act”). Article 4 increases the rates and amounts of certain benefits under Part II of the Social Security Pensions Act 1975 (“the Pensions Act”) (including increases of Category A or B retirement pensions payable by reference to the increases of increments in guaranteed minimum pensions payable by virtue of section 35(6) of that Act); article 5 specifies the dates from which the sums specified for rates or amounts of benefit under the 1975 Act or the Pensions Act are altered. Article 6 increases the rates laid down in the Industrial Injuries and Diseases (Old Cases) Act 1975 for the maximum weekly rate of lesser incapacity allowance supplementing workmen’s compensation and the weekly rate of allowance under the Industrial Diseases Schemes where disablement is not total. Article 7 increases the rate of graduated retirement pension under the National Insurance Act 1965.

Article 8 provides for the weekly rate of one-parent benefit to be increased. Article 9increases the weekly rate of statutory sick pay payable as from 6th April 1989. Article 10 increases the lower rate of statutory maternity pay and article 11 specifies earnings limits forretirement pension and child dependency increases. Article 12 is a transitional provision relating to statutory sick pay.

Part III of the Order relates to family credit, income support and housing benefit. Article 13 sets out the component rates of the applicable amount for family credit purposes. Article 14 and Schedule 2 specify the maximum amount payable by way of family credit for an adult, child or young person.

Article 15 states the amount of sums relevant to the applicable amount for the purposes of income support. Article 15(3) and Schedule 3 set out the personal allowances; article 15(5) and Schedule 4 set out the premiums; article 15(8) and (9) set out the amounts relevant to the beneficiaries in residential care and nursing homes; article 15(10) and (11) and Schedule 6 set out the amounts relevant to those beneficiaries residing in hostels; article 15(12) and Schedule 10 set out the amounts relevant to special cases; and article 15(14) and Schedule 8 set out other miscellaneous amounts. Article 16 provides for the percentage increase of sums payable by way of special transitional additions to income support. Article 17 states the sum by which any income support of a person involved in a trade dispute is reduced.

Article 18 states the amount of the sums relevant to the applicable amount for the purposes of housing benefit. Article 18(7) and Schedule 9 set out the personal allowances and article 18(9) and Schedule 10 set out the premiums.

Article 19 states the amount of the sums relevant to the applicable amount for the purposes of community charge rebates in Scotland specified in the Housing Benefit (Community Charge Rebates) (Scotland) Regulations 1988. Article 19(4) and Schedule 11 set out the personal allowances and article 19(6) and Schedule 12 the premiums. Article 20 is a transitional provision relating to family credit. Article 21 contains revocations.

In accordance with section 63(11) of the Social Security Act 1986, a copy of the report of the Government Actuary (Cm.537) giving his opinion on the likely effect on the National Insurance Fund of the making of this Order was laid before Parliament with the draft Order.

Footnotes

[^f00001]: 1986 c. 50; section 63(7) was amended by the Social Security Act 1988 (c. 7), Schedule 5, and section 63(10) was modified by regulation 2 of the Social Security Act 1986 (Consequential) Amendment Regulations 1988 (S.I. 1988/961).

[^f00002]: See section 83(5) of the Social Security Act 1986.

[^f00003]: See Regulation 2(1) of S.I. 1987/1967, as amended by regulation 2(a) of S.I. 1988/1445.

[^f00004]: 1975 c. 14.

[^f00005]: 1975 c. 60.

[^f00006]: S.I. 1987/1973, the relevant amending instrument is S.I. 1988/660.

[^f00007]: S.I. 1987/1967, the relevant amending instruments are S.I. 1988/663, 910, 999, 1228, 1445.

[^f00008]: S.I. 1987/1971, the relevant amending instrument is S.I. 1988/1444.

[^f00009]: S.I. 1988/1890.

[^f00010]: Schedule 4 was amended by section 21(1) and (2) of, and Schedules 4 and 5 to, the Child Benefit Act 1975 (c. 61), section 22(2) of, and paragraphs 62 and 63 of Schedule 4 to, the Social Security Pensions Act 1975, paragraph 13 of Schedule 1 to the Social Security Act 1979 (c. 18) and the Social Security Benefits Up-rating (No. 2) Order 1987 (S.I. 1987/1978).

[^f00011]: See section 23(2) and (3) of the Social Security Pensions Act 1975 (c. 60), as amended by the Social Security Act 1986, Schedule 10, paragraph 91.

[^f00012]: Section 126A was inserted by section 12 of the Social Security Act 1979 (c. 18) and repealed by the Social Security Act 1986, section 86, Schedule 11.

[^f00013]: Section 14(6) is amended by the Social Security Pensions Act 1975 (c. 60), section 65(1), Schedule 4, paragraph 39)) and the Social Security Act 1979 (c. 18), section 21(4), Schedule 3, paragraph 6; and section 15(4) is amended by the Social Security Pensions Act 1975, section 65(1), Schedule 4, paragraph 40(c) and the Social Security Act 1979, section 21(4), Schedule 3, paragraph 7.

[^f00014]: Widow’s allowance was replaced as from 11th April 1988 by Widow’s Payment (section 36(1) and (2) of the Social Security Act 1986 (c. 50)) except in the case of widows whose husbands died before that date (regulation 2 of S.I. 1987/1692).

[^f00015]: Child’s special allowance was abolished except for existing beneficiaries as from 6th April 1987 (section 40 of the Social Security Act 1986).

[^f00016]: Repealed by the Social Security Act 1986 (c. 50), section 86, Schedule 11; but saved in certain circumstances by S.I. 1986/1561, regulation 13.

[^f00017]: Repealed, except for existing beneficiaries, by the Social Security Act 1986;see section 39, Schedule 3, paragraph 4.

[^f00018]: Section 28(7) is amended by the Social Security (No. 2) Act 1980 (c. 39), section 3(3).

[^f00019]: 1975 c. 16. Sections 2(6)(c) and 7(2)(b) were amended by the Social Security Benefits Up-rating (No. 2) Order 1987 (S.I. 1987/1978).

[^f00020]: 1965 c. 51. Section 36 was repealed by the Social Security Act 1973 (c. 38) but subsection (1) is now continued in force by regulation 3 of the Social Security (Graduated Retirement Benefit) (No. 2) Regulations 1978 (S.I. 1978/393) in the modified form set out in the Schedule to those Regulations as amended by article 6 of the Social Security Benefits Up-rating (No. 2) Order 1987 (S.I. 1987/1978).See also regulation 2 of those Regulations.

[^f00021]: S.I. 1978/393.

[^f00022]: S.I. 1976/1267; the relevant amending instruments are S.I. 1977/1328, 1980/110, 1985/1243, 1986/1172 and 1987/1978.

[^f00023]: 1982 c. 24; section 7(1) was substituted by regulation 2 of the Statutory Sick Pay (Rate of Payment) Regulations 1987 (S.I. 1987/33).

[^f00024]: S.I. 1986/1960.

[^f00025]: Section 41(2B) was inserted by the Health and Social Security Act 1984 (c. 48), section 13, Schedule 5, paragraph 3(c).

[^f00026]: S.I. 1987/1969; additions to income support may be included in the Order under section 63 of the Social Security Act 1986 by virtue of the modification made by regulation 2 of S.I. 1988/961.

[^f00027]: Stated in accordance with the Social Security Act 1986 (c. 50), section 23(7).

[^f00028]: S.I. 1987/1978.

[^f00029]: Section 16(2) was amended by paragraph 10 of Schedule 1 to the Social Security Act 1979 (c. 18).

[^f00030]: Part 1A was inserted in Schedule 4 as from 11th April 1988 by section 36(2) of the Social Security Act 1986 (c. 50); S.I. 1987/1096, article 2(4), Schedule.

[^f00031]: Section 35(3) was amended by section 2(4) of the Social Security Act 1979.

[^f00032]: Paragraph 5A was inserted by section 12(2) of the Social Security Act 1985 (c. 53).

[^f00033]: Amended by S.I. 1988/1228, regulation 9.

[^f00035]: Substituted as from 10th April 1989 by S.I. 1988/1455, Schedule 1, paragraph 7(c).

[^f00036]: Paragraphs 10A and 10B were inserted by regulation 33(bv) of S.I. 1988/663 and paragraph 10A was amended by regulation 21(b) of S.I. 1988/2022.

[^f00037]: Inserted by regulation 22(c) of S.I. 1988/2022.

[^f00038]: Inserted by S.I. 1988/633, regulation 25(b).

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