Welfare Reform and Pensions Act 1999 (c. 30)

(The document as of February, 2008)

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11 In section 80(5) (beneficiary's dependent children)--

(a) for "payable by virtue of subsection (1)(a) of section 37" substitute "or a widowed parent's allowance payable by virtue of section 37(1)(a) or (as the case may be) section 39A(2)(a)"; and

(b) for "subsection (2)(a), (b) or (c) of that section" substitute "section 37(2)(a), (b) or (c) or (as the case may be) section 39A(3)(a), (b) or (c)".

12 In section 150 (interpretation of provisions relating to Christmas bonus), in subsection (1)(c), after "allowance" insert ", widowed parent's allowance".

13 (1) Schedule 3 (contribution conditions for entitlement to benefit) is amended as follows.

(2) In paragraph 4(1) (contribution condition for widow's payment) and in the cross-heading preceding paragraph 4, for "widow's payment" and "Widow's payment" substitute "bereavement payment" and "Bereavement payment" respectively.

(3) In paragraph 5(1) (contribution conditions for widowed mother's allowance, widow's pension etc.), after "allowance," insert " a widowed parent's allowance, a bereavement allowance,"; and in the cross-heading preceding paragraph 5, after "allowance" insert ", widowed parent's allowance, bereavement allowance".

(4) In paragraph 7(1) and (3) (satisfaction of conditions in early years of contribution), for "widow's payment" substitute "bereavement payment".

(5) In paragraph 9 (satisfaction of condition where condition for short-term benefit satisfied)--

(a) for "a woman claims a widow's payment" substitute "a claim is made for a bereavement payment"; and

(b) for "widow's payment" (in the second place where it occurs) substitute "bereavement payment".

14 In Part IV of Schedule 4 (increases for dependants), after the entry relating to widowed mother's allowance insert--

" 4A. Widowed parent's allowance

11.35

--. "

Social Security Administration Act 1992 (c. 5)

15 The Administration Act is amended as follows.

16 In section 1(2)(a) (entitlement to benefit dependent on claim), for "widow's payment, she" substitute "bereavement payment, the person".

17 For section 3 (and the cross-heading preceding it) substitute--

" Bereavement benefits

3 Late claims for bereavement benefit where death is difficult to establish

(1) This section applies where a person's spouse has died or may be presumed to have died on or after the appointed day and the circumstances are such that--

(a) more than 12 months have elapsed since the date of death; and

(b) either--

(i) the spouse's body has not been discovered or identified or, if it has been discovered and identified, the surviving spouse does not know that fact; or

(ii) less than 12 months have elapsed since the surviving spouse first knew of the discovery and identification of the body.

(2) Where this section applies, notwithstanding that any time prescribed for making a claim for a bereavement benefit in respect of the death has elapsed, then--

(a) in any case falling within paragraph (b)(i) of subsection (1) above where it has been decided under section 8 of the [1998 c. 14.] Social Security Act 1998 that the spouse has died or is presumed to have died; or

(b) in any case falling within paragraph (b)(ii) of subsection (1) above where the identification was made not more than 12 months before the surviving spouse first knew of the discovery and identification of the body,

such a claim may be made or treated as made at any time before the expiration of the period of 12 months beginning with the date on which that decision was made or, as the case may be, the date on which the surviving spouse first knew of the discovery and identification.

(3) If, in a case where a claim for a bereavement benefit is made or treated as made by virtue of this section, the claimant would, apart from subsection (2) of section 1 above, be entitled to--

(a) a bereavement payment in respect of the spouse's death more than 12 months before the date on which the claim is made or treated as made; or

(b) any other bereavement benefit in respect of his or her death for a period more than 12 months before that date,

then, notwithstanding anything in that section, the surviving spouse shall be entitled to that payment or, as the case may be, to that other benefit (together with any increase under section 80(5) of the Contributions and Benefits Act).

(4) In subsection (1) above "the appointed day" means the day appointed for the coming into force of sections 54 to 56 of the Welfare Reform and Pensions Act 1999. "

Pension Schemes Act 1993 (c. 48)

18 (1) Section 46 of the Pension Schemes Act 1993 (effect of entitlement to guaranteed minimum pensions on payment of social security benefit) is amended as follows.

(2) In subsection (1), after "widowed mother's allowance" insert ", a widowed parent's allowance".

(3) In subsection (6)(b)(iii), for "or 48B" substitute ", 48B or 48BB".

Pensions Act 1995 (c. 26)

19 (1) Section 128 of the Pensions Act 1995 (additional pension: calculation of surpluses) is amended as follows.

(2) In subsection (4), after "subsections (5)" insert ", (5A)".

(3) After subsection (5) insert--

" (5A) This section has effect in the case of additional pension falling to be calculated under sections 44 and 45 of the Social Security Contributions and Benefits Act 1992 by virtue of section 39C(1) of that Act (widowed parent's allowance), including Category B retirement pension payable under section 48BB(2), if the pensioner's spouse--

(a) dies after 5th April 2000, and

(b) has not attained pensionable age on or before that date. "

(4) In subsection (6), for "or 48B(2)" substitute ", 48B(2) or 48BB(5)".

Part II Incapacity

Social Security Contributions and Benefits Act 1992 (c. 4)

20 The Contributions and Benefits Act has effect subject to the following amendments.

21 In section 21 (contribution conditions)--

(a) in subsection (1), after "other than" insert "short-term incapacity benefit under subsection (1)(b) of section 30A below," and for "30A below" substitute "subsection (5) of that section"; and

(b) in subsection (2), for "30A" substitute "30A(1)(a)".

22 In section 30B (incapacity benefit: rate), at the end add--

" (8) This section has effect subject to sections 30DD (reduction for pension payments) and section 30E (reduction for councillor's allowance) below. "

23 (1) Section 171A (test of incapacity for work) is amended as follows.

(2) After subsection (2) insert--

" (2A) In subsection (2)(a) above the reference to such information or evidence as is there mentioned includes information or evidence capable of being used for assisting or encouraging the person in question to obtain work or enhance his prospects of obtaining it. "

(3) In subsection (3) (requirement to have medical examination), for "a question arises as to" substitute "it falls to be determined".

(4) After subsection (4) add--

" (5) All information supplied in pursuance of this section shall be taken for all purposes to be information relating to social security. "

24 In section 171B(1) (the "own occupation test"), for "the test applicable is the own occupation test" substitute "the own occupation test is applicable in his case."

25 In section 176 (parliamentary control), in subsection (1)(a) (regulations subject to affirmative resolution procedure), after "section 28(3);" insert--

" section 30DD(5)(b) or (c); " .

Part III Abolition of severe disablement allowance

Social Security Contributions and Benefits Act 1992 (c. 4)

26 In section 90 of the Contributions and Benefits Act (beneficiaries under sections 68 and 70)--

(a) for the words from "rates" to "allowance, and" substitute "rate"; and

(b) for "the allowance in question" substitute "the allowance".

Criminal Justice Act 1991 (c. 53)

27 In section 24(4) of the Criminal Justice Act 1991 (recovery of fines etc. by deductions from income support), in the definition of "income support", for ", retirement pension or severe disablement allowance" substitute "or retirement pension".

Part IV Income support

Social Security Contributions and Benefits Act 1992 (c. 4)

28 In section 124(1)(f) of the Contributions and Benefits Act (entitlement to income support conditional on claimant and any partner not being entitled to an income-based jobseeker's allowance), after "the other member of the couple is not" insert ", and the couple are not,".

Part V Jobseeker's allowance

Jobseekers Act 1995 (c. 18)

29 (1) The Jobseekers Act 1995 is amended as follows.

(2) In section 4 (amount payable by way of a jobseeker's allowance), in each of subsections (6) and (8) (amount payable where claimant satisfies the contribution-based, and the income-based, conditions)--

(a) for "satisfies both the contribution-based conditions and the income-based conditions" substitute "is entitled to both a contribution-based jobseeker's allowance and an income-based jobseeker's allowance"; and

(b) after "the amount payable" insert "by way of a jobseeker's allowance".

(3) In section 8 (attendance, information and evidence)--

(a) in subsection (1)(a) (power of Secretary of State to specify place and time for claimant to attend), for "the Secretary of State" substitute "an employment officer"; and

(b) at the end add--

" (3) In subsection (1) "employment officer" means an officer of the Secretary of State or such other person as may be designated for the purposes of that subsection by an order made by the Secretary of State. "

(4) In section 17(1) (reduction of allowance payable to young persons), for "payable to" substitute "payable in respect of".

(5) In section 20(4) (allowance payable to claimant even though section 19 prevents payment to him), for "payable to" there shall be substituted "payable in respect of".

(6) In section 36(1) (orders to be made by statutory instrument unless made under specified provision), after "section" insert "8(3),".

(7) In paragraph 10(2) of Schedule 1 (allowance payable to claimant even though payment to him has been suspended), for "payable to" there shall be substituted "payable in respect of".

Part VI Maternity allowance

Social Security Contributions and Benefits Act 1992 (c. 4)

30 The Contributions and Benefits Act has effect subject to the following amendments.

31 (1) Section 21 (contribution conditions) is amended as follows.

(2) In subsection (1), after "30A below" insert ", maternity allowance under section 35 below".

(3) In subsection (2), omit the entry relating to maternity allowance.

(4) In subsection (4), omit ", other than maternity allowance,".

32 In section 176(1)(c) (parliamentary control), after "section 28(2)" insert--

" section 35A(7); " .

Part VII Retirement pensions

Social Security Contributions and Benefits Act 1992 (c. 4)

33 In section 48A of the Contributions and Benefits Act (category B retirement pension for married person), after subsection (4) insert--

" (4A) Subsection (4) above shall have effect with the omission of the words from "plus" to the end if the pensioner is not the widow or widower of the person by virtue of whose contributions the pension is payable. "

Part VIII Administration of benefits

34 (1) In each of the provisions of the Administration Act to which this paragraph applies--

(a) any reference to a person authorised to exercise any function of a relevant authority relating to housing benefit or council tax benefit shall include a reference to a person providing services to a relevant authority which relate to such a benefit; and

(b) any reference to the exercise of any function relating to such a benefit shall include a reference to the provision of any services so relating.

(2) This paragraph applies to the following provisions of the Administration Act--

(a) section 110A (appointment of inspectors by authorities administering housing benefit or council tax benefit);

(b) sections 122C, 122D and 122E (supply of information in connection with administration of housing benefit or council tax benefit);

(d) section 182B (information about redirection of post); and

(e) Schedule 4 (persons covered by offence relating to unauthorised disclosures).

(3) In this paragraph "relevant authority" means an authority administering housing benefit or council tax benefit.

Section 73.

SCHEDULE 9 New threshold for primary Class 1 contributions

Part I New primary threshold

Earnings limits and thresholds for Class 1 contributions

1 For section 5 of the Contributions and Benefits Act substitute--

" 5 Earnings limits and thresholds for Class 1 contributions

(1) For the purposes of this Act there shall for every tax year be--

(a) the following for primary Class 1 contributions--

(i) a lower earnings limit,

(ii) a primary threshold, and

(iii) an upper earnings limit; and

(b) a secondary threshold for secondary Class 1 contributions.

Those limits and thresholds shall be the amounts specified for that year by regulations which, in the case of those limits, shall be made in accordance with subsections (2) and (3) below.

(2) The amount specified as the lower earnings limit for any tax year shall be an amount equal to or not more than 99p less than--

(a) the sum which at the beginning of that year is specified in section 44(4) below as the weekly rate of the basic pension in a Category A retirement pension; or

(b) that sum as increased by any Act or order passed or made before the beginning of that year and taking effect before 6th May in that year.

(3) The amount specified as the upper earnings limit for any tax year shall be an amount which either--

(a) is equal to 7 times the sum which is the primary threshold for that year; or

(b) exceeds or falls short of 7 times that sum by an amount not exceeding half that sum.

(4) Regulations may, in the case of each of the limits or thresholds mentioned in subsection (1) above, prescribe an equivalent of that limit or threshold in relation to earners paid otherwise than weekly (and references in this or any other Act to "the prescribed equivalent", in the context of any of those limits or thresholds, are accordingly references to the equivalent prescribed under this subsection in relation to such earners).

(5) The power conferred by subsection (4) above to prescribe an equivalent of any of those limits or thresholds includes power to prescribe an amount which exceeds, by not more than £1.00, the amount which is the arithmetical equivalent of that limit or threshold.

(6) Regulations under this section shall be made by the Treasury. "

Liability for Class 1 contributions

2 For section 6 of the Contributions and Benefits Act substitute--

" 6 Liability for Class 1 contributions

(1) Where in any tax week earnings are paid to or for the benefit of an earner over the age of 16 in respect of any one employment of his which is employed earner's employment--

(a) a primary Class 1 contribution shall be payable in accordance with this section and section 8 below if the amount paid exceeds the current primary threshold (or the prescribed equivalent); and

(b) a secondary Class 1 contribution shall be payable in accordance with this section and section 9 below if the amount paid exceeds the current secondary threshold (or the prescribed equivalent).

(2) No primary or secondary Class 1 contribution shall be payable in respect of earnings if a Class 1B contribution is payable in respect of them.

(3) Except as may be prescribed, no primary Class 1 contribution shall be payable in respect of earnings paid to or for the benefit of an employed earner after he attains pensionable age, but without prejudice to any liability to pay secondary Class 1 contributions in respect of any such earnings.

(4) The primary and secondary Class 1 contributions referred to in subsection (1) above are payable as follows--

(a) the primary contribution shall be the liability of the earner; and

(b) the secondary contribution shall be the liability of the secondary contributor;

but nothing in this subsection shall prejudice the provisions of paragraph 3 of Schedule 1 to this Act relating to the manner in which the earner's liability falls to be discharged.

(5) Except as provided by this Act, the primary and secondary Class 1 contributions in respect of earnings paid to or for the benefit of an earner in respect of any one employment of his shall be payable without regard to any other such payment of earnings in respect of any other employment of his.

(6) Regulations may provide for reducing primary or secondary Class 1 contributions which are payable in respect of persons to whom Part XI of the Employment Rights Act 1996 (redundancy payments) does not apply by virtue of section 199(2) or 209 of that Act.

(7) Regulations under this section shall be made by the Treasury. "

Notional payment of primary Class 1 contribution where earnings not less than lower earnings limit

3 After section 6 of the Contributions and Benefits Act insert--

" 6A Notional payment of primary Class 1 contribution where earnings not less than lower earnings limit

(1) This section applies where in any tax week earnings are paid to or for the benefit of an earner over the age of 16 in respect of any one employment of his which is employed earner's employment and the amount paid--

(a) is not less than the current lower earnings limit (or the prescribed equivalent), but

(b) does not exceed the current primary threshold (or the prescribed equivalent).

(2) Subject to any prescribed exceptions or modifications--

(a) the earner shall be treated as having actually paid a primary Class 1 contribution in respect of that week, and

(b) those earnings shall be treated as earnings upon which such a contribution has been paid,

for any of the purposes mentioned in subsection (3) below.

(3) The purposes are--

(a) the purposes of section 14(1)(a) below;

(b) the purposes of the provisions mentioned in section 21(5A)(a) to (c) below;

(d) any purposes relating to jobseeker's allowance.

(4) Regulations may provide for any provision of this Act which, in whatever terms, refers--

(a) to primary Class 1 contributions being payable by a person, or

(b) otherwise to a person's liability to pay such contributions,

to have effect for the purposes of this section with any prescribed modifications.

(5) Except as may be prescribed, nothing in this section applies in relation to earnings paid to or for the benefit of an employed earner after he attains pensionable age.

(6) Except as provided by this Act, this section applies in relation to earnings paid to or for the benefit of an earner in respect of any one employment of his irrespective of any other such payment of earnings in respect of any other employment of his.

(7) Regulations under this section shall be made by the Treasury. "

Calculation of primary Class 1 contributions

4 For section 8 of the Contributions and Benefits Act substitute--

" 8 Calculation of primary Class 1 contributions

(1) Where a primary Class 1 contribution is payable as mentioned in section 6(1)(a) above, the amount of that contribution shall be the primary percentage of so much of the earner's earnings paid in the tax week, in respect of the employment in question, as--

(a) exceeds the current primary threshold (or the prescribed equivalent); and

(b) does not exceed the current upper earnings limit (or the prescribed equivalent);

but this subsection is subject to regulations under section 6(6) above and sections 116 to 120 below and to section 41 of the Pensions Act (reduced rates of Class 1 contributions for earners in contracted-out employment).

(2) For the purposes of this Act the primary percentage shall be 10 per cent; but the percentage is subject to alteration under sections 143 and 145 of the Administration Act. "

Calculation of secondary Class 1 contributions

5 For section 9 of the Contributions and Benefits Act substitute--

" 9 Calculation of secondary Class 1 contributions

(1) Where a secondary Class 1 contribution is payable as mentioned in section 6(1)(b) above, the amount of that contribution shall be the secondary percentage of so much of the earnings paid in the tax week, in respect of the employment in question, as exceeds the current secondary threshold (or the prescribed equivalent).

(2) For the purposes of subsection (1) above, the secondary percentage shall be 12.2 per cent; but the percentage is subject to alteration under sections 143 and 145 of the Administration Act.

(3) Subsection (1) above is subject to regulations under section 6(6) above and sections 116 to 120 below and to section 41 of the Pensions Act. "

Part II Reduced contributions in respect of members of contracted-out schemes

Reduced rates for members of salary related contracted-out schemes

6 (1) Section 41 of the [1993 c. 48.] Pension Schemes Act 1993 is amended as follows.

(2) In subsection (1), for "(1C)" substitute "(1E)".

(3) For subsections (1A) to (1C) substitute--

" (1A) The amount of any primary Class 1 contribution in respect of the earnings shall be reduced by an amount equal to 1.6 per cent of the relevant part of the earnings ("Amount R1").

(1B) The amount of any secondary Class 1 contribution in respect of the earnings shall be reduced by an amount equal to 3 per cent of the relevant part of the earnings ("Amount R2").

(1C) The aggregate of Amounts R1 and R2 shall be set off--

(a) first against the aggregate amount which the secondary contributor is liable to pay in respect of the contributions mentioned in subsections (1A) and (1B); and

(b) then (as to any balance) against any amount which the secondary contributor is liable to pay in respect of any primary or secondary Class 1 contribution in respect of earnings--

(i) paid to or for the benefit of any other employed earner (whether in contracted-out employment or not), and

(ii) in relation to which the secondary contributor is such a contributor;

and in this subsection any reference to a liability to pay an amount in respect of a primary Class 1 contribution is a reference to such a liability under paragraph 3 of Schedule 1 to the Social Security Contributions and Benefits Act 1992.

(1D) If--

(a) any balance remains, and

(b) the secondary contributor makes an application for the purpose to the Inland Revenue,

the Inland Revenue shall, in such manner and at such time (or within such period) as may be prescribed, pay to the secondary contributor an amount equal to the remaining balance.

But regulations may make provision for the adjustment of an amount that would otherwise be payable under this subsection so as to avoid the payment of trivial or fractional amounts.

(1E) If the Inland Revenue pay any amount under subsection (1D) which they are not required to pay, they may recover that amount from the secondary contributor in such manner and at such time (or within such period) as may be prescribed. "

Reduced rates for members of money purchase contracted-out schemes

7 (1) Section 42A of the Pension Schemes Act 1993 is amended as follows.

(2) In subsection (1), for "(3)" substitute "(2D) and (3)".

(3) For subsections (2) to (2B) substitute--

" (2) The amount of any primary Class 1 contribution in respect of the earnings shall be reduced by an amount equal to the appropriate flat-rate percentage of the relevant part of the earnings ("Amount R1").

(2A) The amount of any secondary Class 1 contribution in respect of the earnings shall be reduced by an amount equal to the appropriate flat-rate percentage of the relevant part of the earnings ("Amount R2").

(2B) The aggregate of Amounts R1 and R2 shall be set off--

(a) first against the aggregate amount which the secondary contributor is liable to pay in respect of the contributions mentioned in subsections (2) and (2A); and

(b) then (as to any balance) against any amount which the secondary contributor is liable to pay in respect of a primary or secondary Class 1 contribution in respect of earnings--

(i) paid to or for the benefit of any other employed earner (whether in contracted-out employment or not), and

(ii) in relation to which the secondary contributor is such a contributor;

(2C) If--

(a) any balance remains, and

(b) the secondary contributor makes an application for the purpose to the Inland Revenue,

the Inland Revenue shall, in such manner and at such time (or within such period) as may be prescribed, pay to the secondary contributor an amount equal to the remaining balance.

But regulations may make provision for the adjustment of an amount that would otherwise be payable under this subsection so as to avoid the payment of trivial or fractional amounts.

(2D) If the Inland Revenue pay any amount under subsection (2C) which they are not required to pay, they may recover that amount from the secondary contributor in such manner and at such time (or within such period) as may be prescribed. "

Payments by Inland Revenue out of and into National Insurance Fund

8 (1) Section 177 of the [1993 c. 48.] Pension Schemes Act 1993 is amended as follows.

(2) In subsection (2)(za), for "section 42A(3)" substitute "section 41(1D) or section 42A(2C) or (3)".

(3) In subsection (7)(a), for "42A(5) or" substitute "41(1E), 42A(2D) or (5) or".

Part III National Health Service allocation

9 (1) Section 162 of the Administration Act is amended as follows.

(2) In subsection (5)--

(a) in paragraph (a), for "the lower earnings limit" substitute "the primary threshold"; and

(b) in paragraph (b), before "earnings" insert "total".

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