Social Security Act 1989 (c. 24)

(The document as of February, 2008)

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(a) sections 1 and 2 (which are superseded by this section) shall cease to have effect; and

(b) in section 3 (constitution of central advisory committee) for the words "under this Act" there shall be substituted the words "under section 25 of the Social Security Act 1989".

General and supplementary provisions

26 Pre-consolidation amendments

(1) The enactments mentioned in Schedule 7 to this Act shall have effect subject to the amendments there specified, being amendments designed to facilitate, or otherwise desirable in connection with, the consolidation of enactments relating to social security or pensions.

(2) The amendment by that Schedule of any provision contained in any enactment by virtue of any order or regulations shall not be taken to have prejudiced any power to make further orders or regulations revoking or amending that provision.

27 Application to the Crown

The provisions of section 22 above and Schedule 4 to this Act shall apply in relation to the making of a compensation payment by the Crown as they apply in relation to the making of such a payment by any other compensator, within the meaning of that section.

28 Financial provisions

(1) There shall be paid out of money provided by Parliament--

(a) any expenses incurred under this Act by a Minister of the Crown; and

(b) any increase attributable to the provisions of this Act in the sums payable out of such money under any other Act.

(2) There shall be paid out of the National Insurance Fund into the Consolidated Fund, at such times and in such manner as the Treasury may direct, such sums as the Secretary of State may estimate (in accordance with any directions given by the Treasury) to be the amount of the administrative expenses incurred by him under sections 1 to 4, 6, 7, 9 to 12 and 22 above, excluding any category of expenses or payments which the Treasury may direct, or any enactment may require, to be excluded from the Secretary of State's estimates under this subsection.

(3) Any sums paid to the Secretary of State in pursuance of section 22 above shall be paid--

(a) into the Consolidated Fund, to the extent that the Secretary of State estimates that those sums relate to payments out of money provided by Parliament; and

(b) into the National Insurance Fund, to the extent that he estimates that they relate to payments out of that Fund.

(4) Any expenses of the Secretary of State in making payments under paragraph 4, 16 or 18 of Schedule 4 to this Act shall be paid--

(a) out of money provided by Parliament, to the extent that the Secretary of State estimates that those payments relate to sums paid into the Consolidated Fund; and

(b) out of the National Insurance Fund, to the extent that he estimates that they relate to sums paid into that Fund.

(5) There shall be paid into the Consolidated Fund any increase by virtue of this Act in the sums so payable by virtue of any other Act.

29 Regulations and orders: general provisions

(1) Subject to the following provisions of this section, subsections (1) to (3A) of section 166 of the principal Act shall apply in relation to any power conferred by any provision of this Act to make regulations or an order as they apply in relation to any power conferred by that Act to make regulations or an order, but as if for references to that Act there were substituted references to this Act.

(2) A statutory instrument containing (whether alone or with other provisions)--

(a) the first regulations made under section 17 of the principal Act by virtue of section 10 above, or

(b) the first regulations made by virtue of section 12 above, or

(d) the first regulations prescribing relevant benefits for the purposes of section 22 above, or

(e) the first regulations made under section 59B(7) of the principal Act (retirement allowance) by virtue of paragraph 8(6) of Schedule 1 to this Act, or

(f) the first regulations made under section 2 of the [1988 c. 7.] Social Security Act 1988 (reduced earnings allowance etc) by virtue of paragraph 8(7) of that Schedule, or

(g) the first regulations under paragraph 4 of Schedule 4 to this Act, or

(h) any regulations under paragraph 21(2) of that Schedule,

shall not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.

(3) All regulations and orders made under this Act, other than those to which subsection (2) above applies and orders under section 33 below, shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(4) Section 167(3) of the principal Act and section 83(4) of the 1986 Act (regulations subject to negative resolution) shall not apply in relation to any regulations contained in a statutory instrument which falls within subsection (2) above by virtue of paragraph (a), (b) or (c) of that subsection.

(5) Any power to make--

(a) regulations prescribing relevant benefits for the purposes of section 22 above, or

(b) regulations under paragraph 4 of Schedule 4 to this Act,

shall be exercisable with the consent of the Treasury.

(6) A power conferred by this Act to make any regulations or order, where the power is not expressed to be exercisable with the consent of the Treasury, shall if the Treasury so direct be exercisable only in conjunction with them.

(7) Nothing in this section applies to orders of the Occupational Pensions Board under Schedule 5 to this Act.

30 Interpretation

(1) In this Act, unless the context otherwise requires--

"the 1973 Act" means the [1973 c. 38.] Social Security Act 1973;
"the 1982 Act" means the [1982 c. 24.] Social Security and Housing Benefits Act 1982;
"the 1986 Act" means the [1986 c. 50.] Social Security Act 1986;
"Commissioner" has the same meaning as it has in the principal Act;
"the Old Cases Act" means the [1975 c. 16.] Industrial Injuries and Diseases (Old Cases) Act 1975;
"the Pensions Act" means the [1975 c. 60.] Social Security Pensions Act 1975;
"prescribe" means prescribe by regulations;
"the principal Act" means the [1975 c. 14.] Social Security Act 1975;
"regulations" means regulations made by the Secretary of State.

(2) In this Act references to Great Britain include references to the territorial waters of the United Kingdom adjacent to Great Britain.

31 Minor and consequential amendments, repeals and transitional provisions

(1) The enactments mentioned in Schedule 8 to this Act shall have effect with the amendments there specified (being minor amendments and amendments consequential on provisions of this Act).

(2) The enactments mentioned in Schedule 9 to this Act (which include some that are spent or of no further practical utility) are repealed to the extent specified in the third column of that Schedule.

(3) The Secretary of State may by regulations make--

(a) such transitional provision,

(b) such consequential provision, or

as he considers necessary or expedient in preparation for or in connection with the coming into force of any provision of this Act or the operation of any enactment repealed or amended by a provision of this Act during any period when the repeal or amendment is not wholly in force.

32 Corresponding provision for Northern Ireland

An Order in Council under paragraph 1(1)(b) of Schedule 1 to the [1974 c. 28.] Northern Ireland Act 1974 (legislation for Northern Ireland in the interim period) which states that it is made only for purposes corresponding to those of this Act--

(a) shall not be subject to paragraph 1(4) and (5) of that Schedule (affirmative resolution of both Houses of Parliament); but

(b) shall be subject to annulment in pursuance of a resolution of either House of Parliament.

33 Short title, commencement and extent

(1) This Act may be cited as the Social Security Act 1989; and this Act, other than section 25, and the Social Security Acts 1975 to 1988 may be cited together as the Social Security Acts 1975 to 1989.

(2) Apart from the provisions specified in subsection (3) below, this Act shall come into force on such day as the Secretary of State may by order appoint; and different days may be so appointed for different provisions or different purposes of the same provision.

(3) The provisions referred to in subsection (2) above are the following--

(a) sections 2, 3, 4, 6, 14 to 20, 28, 29, 30, 31(3), 32 and this section;

(b) Schedule 2;

(d) paragraphs 6 to 8, 14 and 16 to 21 of Schedule 6 (and section 24 so far as relating to those paragraphs);

(e) paragraphs 2 to 7, 13 and 15 of Schedule 7 (and section 26 so far as relating to those paragraphs);

(f) paragraphs 1, 4 to 6, 8 to 13, 17 and 18 of Schedule 8 (and section 31 so far as relating to those paragraphs);

(g) the repeals in Schedule 9 to the extent that they are consequential on any provision specified in paragraphs (a) to (f) above (and section 31 so far as relating to those repeals).

(4) Where any enactment repealed or amended by this Act extends to any part of the United Kingdom, the repeal or amendment extends to that part.

(5) Paragraph 12 of Schedule 4 does not extend to Scotland.

(6) Sections 25, 31(3), 32 and this section extend to Northern Ireland.

(7) Except as provided by this section, this Act does not extend to Northern Ireland.

SCHEDULES

Section 7

SCHEDULE 1 Abolition of Earnings Rule Etc.

Category A and Category B retirement pensions

1 In section 27 of the principal Act, subsections (3), (4) and (5) (retirement from regular employment) shall cease to have effect.

2 (1) In section 30 of that Act, in subsection (3) (election to be treated as if entitlement to retirement pension had not commenced) the following shall cease to have effect--

(a) in paragraph (a) the words "retired from regular employment or has otherwise"; and

(b) the words "retired or".

(2) For subsection (5) of that section (advance notice of retirement) there shall be substituted the following--

" (5) In any case where--

(a) a person claims a Category A or Category B retirement pension, and

(b) the date specified in the claim as the date on which entitlement to the pension is to commence falls after the date when the claim was made,

such a pension may be awarded as from the date so specified but, if so awarded, shall be conditional on the person's not ceasing to be entitled to the pension in consequence of any election under subsection (3) above. "

(3) Subsection (6)(a) of that section (power to vary 5 year period in sections 27(5) and 30(1)) shall cease to have effect.

Deferred entitlement to retirement pension

3 (1) In Schedule 1 to the Pensions Act (deferred retirement) for the words from the beginning of the Schedule to "age" in paragraph 1 there shall be substituted--

" SCHEDULE 1 Increase of Pension Where Entitlement is Deferred

Increase of pension where pensioner's entitlement is deferred

1 Where a person's entitlement to a Category A or Category B retirement pension is deferred, " .

(2) In paragraph 2 of that Schedule, in sub-paragraph (1), for the words "period of deferment" there shall be substituted the words "period of enhancement".

(3) For sub-paragraph (2) of that paragraph (definitions) there shall be substituted--

" (2) In this Schedule--

"incremental period" means any period of six days which are treated by regulations as days of increment for the purposes of this Schedule in relation to the person and the pension in question; and
"the period of enhancement", in relation to that person and that pension, means the period which--

(a) begins on the same day as the period of deferment in question; and

(b) ends on the same day as that period or, if earlier, on the day before the fifth anniversary of the beginning of that period. "

(4) In sub-paragraph (3) of that paragraph, for the words "if he had retired on attaining pensionable age" there shall be substituted the words "if his entitlement had not been deferred".

(5) In sub-paragraph (5) of that paragraph, for the words "period of deferment" in both places where they occur there shall be substituted the words "period of enhancement".

(6) In sub-paragraph (6) of that paragraph, for the words "if he had retired from regular employment" there shall be substituted the words "if his entitlement had not been deferred".

(7) In paragraph 3 of that Schedule--

(a) for the words "period of deferment" there shall be substituted the words "period of enhancement"; and

(b) for the words "if he had retired from regular employment" there shall be substituted the words "if his entitlement to the pension had commenced".

(8) In the heading preceding paragraph 4 of that Schedule, for the words "deferred retirement" there shall be substituted the words "deferred entitlement"; and in that paragraph--

(a) in sub-paragraph (1)(b)(ii) for the words "if he had retired on the date of" there shall be substituted the words "if his period of deferment had ended on the day before", and

(b) in sub-paragraph (2)(c)(ii) for the words "if she had retired on the date of " there shall be substituted the words "if her period of deferment had ended on the day before".

(9) In paragraph 5 of that Schedule (married women) for sub-paragraphs (1) and (2) there shall be substituted--

" 5 (1) For the purposes of paragraphs 1 to 3 above in their application to a Category B retirement pension to which a married woman is entitled by virtue of her husband's contributions, a married woman who would have become entitled to such a pension on an earlier day if her husband's entitlement to his Category A retirement pension had not been deferred shall be treated as having (in addition to any other period of enhancement) a period of enhancement which begins on that earlier day and ends on the same day as her husband's period of enhancement.

(2) The reference in sub-paragraph (1) above to the day on which the woman's husband's period of enhancement ends shall, where the marriage is terminated before that day, be construed as a reference to the day on which the marriage is terminated. "

(10) In sub-paragraph (3) of that paragraph--

(a) for the words "if he had retired on attaining pensionable age" there shall be substituted the words "if his entitlement had not been deferred"; and

(b) for the words "if she and her husband had so retired" there shall be substituted the words "if neither her nor her husband's entitlement to a retirement pension had been deferred".

(11) In Schedule 20 to the principal Act (glossary of expressions) there shall be inserted at the appropriate places--

" "Deferred" and "period of deferment" (in relation to entitlement to a Category A or Category B retirement pension)

See section 12 of the Pensions Act. "

" "Period of deferment" (in relation to a Category A or Category B retirement pension)

See "deferred" and "period of deferment" above. "

Unemployment and sickness benefit

4 (1) In section 14 of the principal Act, in subsection (2) (conditions of entitlement for unemployment and sickness benefit) for paragraphs (b) and (c) there shall be substituted--

" (b) on that day the person--

(i) is over pensionable age, but not more than five years over that age; and

(ii) would be entitled to a Category A retirement pension (section 28) if his entitlement had not been deferred or if he had not made an election under section 30(3) below; or

(i) is over pensionable age, but not more than five years over that age; and

(ii) would be entitled to a Category B retirement pension by virtue of the contributions of his deceased spouse, but for any such deferment or election. "

(2) In subsection (6) of that section (rate of benefit: disregard of certain increases) the words following paragraph (c) shall cease to have effect.

Invalidity pension

5 (1) In section 15 of that Act (invalidity pension) in subsection (1)(b)(ii) for the words "and not having retired from regular employment" there shall be substituted the words ",but not more than five years over it,".

(2) For subsection (2) of that section (additional conditions for those over pensionable age) there shall be substituted--

" (2) The conditions of this subsection are that on that day--

(a) the person would be entitled to a Category A retirement pension (section 28) if his entitlement had not been deferred or if he had not made an election under section 30(3) below; or

(b) the person would be entitled to a Category B retirement pension by virtue of the contributions of his deceased spouse, but for any such deferment or election. "

(3) In subsection (6)(a) of that section (regulations making provision for persons over pensionable age corresponding to section 50A) the words "but have not retired from regular employment" shall cease to have effect.

Category C retirement pension

6 In section 39(1)(b) of that Act (Category C pension for retired woman over pensionable age whose husband is entitled to such a pension) the words "and has retired from regular employment" shall cease to have effect.

Increases for dependants

7 Section 48(2) and (3) of that Act (application of earnings rule in connection with increase of Category A pension in respect of dependants) shall cease to have effect.

Industrial injuries benefit

8 (1) In section 50A of that Act (sickness benefit in respect of industrial injury) in subsection (3)(b) for the words "but has not retired from regular employment" there shall be substituted the words "but who is not for the time being entitled to a Category A or Category B retirement pension."

(2) In section 59B of that Act (retirement allowance etc) in subsection (1)--

(a) in paragraph (b), for the words from the beginning to "from" there shall be substituted the words "gives up";

(b) in paragraph (c), for the words "retired or is deemed to have retired" there shall be substituted the words "gave up such employment"; and

(c) in the words following that paragraph, for the words from "retires" onwards there shall be substituted the words "gives up regular employment and may become entitled to it again only if he returns to regular employment."

(3) In subsection (3) of that section (duration of entitlement) for the words "Unless he makes an election in accordance with regulations under section 30(3) above" there shall be substituted the words "Unless he returns to regular employment".

(4) For subsection (4) of that section there shall be substituted--

" (4) If he returns to regular employment, his entitlement to retirement allowance shall cease on the day on which he does so; but he may again become entitled to reduced earnings allowance or, if he again gives up regular employment, retirement allowance. "

(5) In subsection (5) of that section (rate of benefit) for paragraph (a) there shall be substituted--

" (a) 25 per cent. of the weekly rate at which he was last entitled to reduced earnings allowance; or " .

(6) After subsection (6) of that section there shall be inserted--

" (7) Regulations may--

(a) make provision with respect to the meaning of "regular employment" for the purposes of this section; and

(b) prescribe circumstances in which, and periods for which, a person is or is not to be regarded for those purposes as having given up, or returned to, such employment.

(8) Regulations under subsection (7) above may, in particular--

(a) provide for a person to be regarded--

(i) as having given up, or as not having returned to, regular employment, notwithstanding that he is or intends to be an earner; or

(ii) as having returned to, or as not having given up, regular employment, notwithstanding that he has or may have one or more days of interruption of employment; and

(b) prescribe circumstances in which a person is or is not to be regarded as having given up, or returned to, regular employment by reference to--

(i) the level or frequency of his earnings during a prescribed period; or

(ii) the number of hours for which he works during a prescribed period calculated in a prescribed manner. "

(7) In section 2 of the [1988 c. 7.] Social Security Act 1988, for subsection (8) (which provides that no retired person over pensionable age shall be entitled to reduced earnings allowance except under subsection (4) of that section) there shall be substituted--

" (8) Subsection (4) above shall, in prescribed circumstances, cease to apply in the case of a person who is engaged in regular employment; and, subject to regulations, any subsequent entitlement of his to reduced earnings allowance or retirement allowance shall be determined as if that subsection had never been enacted.

(8A) In subsection (8) above, "regular employment" has the same meaning as it has in section 59B of the Social Security Act 1975 (retirement allowance) and regulations may prescribe circumstances in which a person is or is not to be regarded as engaged in such employment. "

(8) Subsection (9) of that section (definitions relating to retirement) shall cease to have effect.

Category B retirement pension for widower

9 (1) In section 8 of the Pensions Act, in subsection (1) (conditions of entitlement for widower's Category B pension) the words "who has retired from regular employment" shall cease to have effect.

(2) For subsection (3) of that section (period of entitlement) there shall be substituted--

" (3) Subject to the provisions of the principal Act, a man shall become entitled to a Category B retirement pension on the day on which the conditions of entitlement become satisfied in his case and his entitlement shall continue throughout his life. "

Invalidity pensions for widows and widowers

10 (1) In section 15 of that Act, in subsection (5) (disentitlement to widow's invalidity pension)--

(a) for the words "and has retired from regular employment" there shall be substituted the words "and is entitled to a Category A or Category B retirement pension"; and

(b) for the words "she retires from regular employment, having attained" there shall be substituted the words "she has attained".

(2) In section 16 of that Act, in subsection (5) (disentitlement to widower's invalidity pension)--

(a) for the words "and has retired from regular employment" there shall be substituted the words "and is entitled to a Category A or Category B retirement pension"; and

(b) for the words "he retires from regular employment, having attained" there shall be substituted the words "he has attained".

Occupational and personal pensions

11 In section 29 of that Act (contracted-out rates of benefit) in subsection (2) (circumstances in which a person is treated as entitled to a guaranteed minimum pension) before the word "if" in each of the places where it occurs there shall be inserted respectively "(a)", "(b)" and "(c)"; and at the end of that subsection there shall be inserted the words " or

(d) if its commencement had not been postponed, as mentioned in section 33(3) below. "

Section 19.

SCHEDULE 2 Persons Employed in Social Security Administration or Adjudication

Part I The Specified Persons

Government departments

A civil servant in--

(a) the Department of Social Security;

(b) the Department of Employment;

The Inland Revenue

A member or officer of the Commissioners of Inland Revenue.

Adjudication officers

The Chief Adjudication Officer.

An adjudication officer.

Adjudicating bodies

The clerk to, or other officer or member of the staff of, any of the following bodies--

(a) a social security appeal tribunal;

(b) the Attendance Allowance Board;

(d) a vaccine damage tribunal;

(e) a Pensions Appeal Tribunal constituted under the [1943 c. 39.] Pensions Appeal Tribunals Act 1943.

The Occupational Pensions Board

The chairman or deputy chairman of the Occupational Pensions Board.

A member of that Board.

A member of the staff of that Board.

The Social Fund

The Social Fund Commissioner.

A social fund officer.

A social fund inspector.

A member of any staff employed in connection with the Social Fund.

Former statutory bodies and officers

An officer or other member of the staff of--

(a) the former Supplementary Benefits Commission;

(b) the former National Assistance Board.

A benefit officer.

An insurance officer.

Part II Construction of References to Government Departments Etc

1 (1) The reference in Part I of this Schedule to the Department of Social Security includes a reference to--

(a) the former Department of Health and Social Security,

(b) the former Ministry of Pensions and National Insurance,

(d) any other former government department,

but, in the case of paragraphs (a) and (d) above, only to the extent that the functions carried out in the former department related to social security or to occupational or personal pension schemes or to war pensions.

(2) In sub-paragraph (1) above--

"occupational pension scheme" has the meaning given by section 66(1) of the Pensions Act;
"personal pension scheme" has the meaning given by section 84(1) of the 1986 Act; and
"war pension" has the meaning given by section 25(4) of this Act.

2 The reference in Part I of this Schedule to the Department of Employment is a reference to that Department only to the extent that the functions carried out in it relate to unemployment benefit or income support or related to the former supplementary benefit.

3 The reference in Part I of this Schedule to the Lord Chancellor's Department is a reference to that Department only to the extent that the functions carried out relate to functions of the Chief Social Security Commissioner or any other Social Security Commissioner.

4 The reference in Part I of this Schedule to the Commissioners of Inland Revenue is a reference to those Commissioners only to the extent that the functions carried out by them or any officer of theirs relate to--

(a) any of the following aspects of social security--

(i) National Insurance contributions,

(ii) statutory sick pay,

(iii) statutory maternity pay, or

(b) the tax treatment of occupational or personal pension schemes, as defined in paragraph 1(2) above.

Section 21.

SCHEDULE 3 Adjudication

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