The Social Security Pensions (Low Earnings Threshold) Order 2012

Made: 26th January 2012

Laid before Parliament: 31st January 2012

Coming into force: 6th April 2012

The Secretary of State makes the following Order in exercise of the powers conferred on him by section 148A(3) and (4) of the Social Security Administration Act 1992[^f00002].

Citation and commencement

1

This Order may be cited as the Social Security Pensions (Low Earnings Threshold) Order 2012 and shall come into force on 6th April 2012.

Low earnings threshold

2

For the purposes of the Social Security Contributions and Benefits Act 1992[^f00003], it is directed that the low earnings threshold[^f00004] for the tax years following the tax year 2011-2012 shall be £14,700.

Signed

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

Steve Webb — Minister of State — Department for Work and Pensions — 26th January 2012

Explanatory note

(This note is not part of the Order)

EXPLANATORY NOTE

The low earnings threshold is the amount by reference to which the surplus earnings bands are determined for the purpose of calculating the additional pension (the state second pension) in a state retirement pension.

This Order is made following a review by the Secretary of State under section 148A (revaluation of low earnings threshold) of the Social Security Administration Act 1992 (c. 5) of the general level of earnings in Great Britain with a view to determining whether, and if so by how much, the amount of the low earnings threshold for the purposes of the Social Security Contributions and Benefits Act 1992 (c. 4) should be increased for future tax years.

As a result of that review, it appears to the Secretary of State that the general level of earnings during the period from 1st October 2010 to 30th September 2011 has increased by 1.8%.

This Order directs that the low earnings threshold for the tax years following 2011 – 2012 shall be £14,700. The threshold for the tax year 2011 – 2012 was directed to be £14,400 by virtue of the Social Security Pensions (Low Earnings Threshold) Order 2011 (S.I. 2011/477).

A full impact assessment has not been produced for this instrument as it has no new impact on the private sector or civil society organisations.

Footnotes

[^f00001]: 1992 c. 5. Section 148A was inserted by section 33(1) of the Child Support, Pensions and Social Security Act 2000 (c. 19).

[^f00002]: The amount of the threshold to be increased by this Order is the amount specified in section 148A(5).

[^f00003]: 1992 c. 4.

[^f00004]: See section 44A of the Social Security Contributions and Benefits Act 1992 (c. 4) as inserted by section 30(3) of the Child Support, Pensions and Social Security Act 2000 (c. 19).