National Insurance Act 1965

Part I — Insured Persons and Contributions

Insured persons.

Description and classification of insured persons.

1

Contributions.

Source of funds.

2

For the purpose of providing the funds required for paying benefit under this Act and for making any other payments which under this Act are to be made out of the National Insurance Fund, contributions shall be payable by insured persons, by employers and out of moneys provided by Parliament in accordance with sections 3 to 7 of this Act.

Flat-rate contributions by insured persons and employers.

3

Subject to the provisions of this Act—

• (a) every employed person of any description set out in column 1 of Part I of Schedule 1 to this Act shall be liable to pay weekly contributions at the rate set out in relation to that description—

• (i) unless his employment is a non-participating employment, in column 2 of the said Part I; or

• (ii) if his employment is a non-participating employment, in column 3 of the said Part I;

• (b) every employer of an employed person of any description set out in column 1 of Part II of the said Schedule 1, or of any person of any such description who is to be treated by virtue of the said Part II as an employed person, shall be liable to pay weekly contributions in respect of that person at the rate set out in relation to that description—

• (i) unless that person's employment is a non-participating employment, in column 2 of the said Part II; or

• (ii) if that person's employment is a non-participating employment, in column 3 of the said Part II;

• (c) every self-employed person of any description set out in column 1 of Part III of the said Schedule 1 shall be liable to pay weekly contributions at the rate set out in relation to that description in column 2 of the said Part III;

• (d) every non-employed person of any description set out in column 1 of Part IV of the said Schedule 1 shall be liable to pay weekly contributions at the rate set out in relation to that description in column 2 of the said Part IV.

Graduated contributions by employed persons and employers.

4

• (1) Subject to the provisions of this Act, where in any income tax week there is made to or for the benefit of a person over the age of eighteen a payment on account of his remuneration in any one employment of an amount exceeding nine pounds (or the equivalent amount for remuneration not paid weekly), then if the employment was an employed contributor's employment and is not at the time of the payment a non-participating employment and that person either is under pensionable age or has not retired from regular employment—

• (a) he shall be liable to pay a graduated contribution based on that payment; and

• (b) his employer in the employment shall be liable to pay such a contribution in respect of him; and

• (c) the amount of the graduated contribution payable by each of them shall be four and a quarter per cent. of the amount, up to nine pounds, by which that payment exceeds nine pounds (or of the equivalent amount for remuneration not paid weekly).

• (2) In relation to graduated contributions, references in this Act to remuneration shall be taken to include, and to include only, any emoluments assessable to income tax under Schedule E (other than pensions), being emoluments from which tax under that Schedule is deductible, but shall apply to a payment of any such remuneration whether or not tax in fact falls to be deducted from that payment.

• (3) Except in so far as regulations otherwise provide, the graduated contributions payable in any income tax week in respect of a person's remuneration shall be determined—

• (a) by aggregating, and treating as a single payment of remuneration in one employment, all payments made in that week on account of remuneration in the same employment, or in any two or more employments under the same employer, except any employment such that graduated contributions are not payable in respect of it;

• (b) by apportioning between the employments any single payment of remuneration in two or more employments under different employers, and (subject to the foregoing paragraph) treating as separate payments the parts apportioned to each employment.

• (4) Where a person in any income tax year is paid remuneration from two or more employments, and the graduated contributions paid by him in respect of that remuneration exceed the prescribed amount, the excess—

• (a) shall for the purposes of the powers conferred by section 14 of this Act be treated as representing contributions of the wrong class paid in error; and

• (b) shall for the purpose of any right under this Act to benefit be treated as not properly payable.

• (5) For the purpose of graduated contributions, any sums deducted (whether for contributions, for income tax or otherwise) from any payment of remuneration which is or would but for the deduction be made shall, except in so far as regulations otherwise provide, be treated as paid on account of the remuneration; and for the purpose aforesaid any payment of remuneration shall be disregarded in so far as it is directed by regulations to be treated as coming from sums comprised in a previous payment of remuneration or to be otherwise excluded from the computation of a person's remuneration.

• (6) Provision shall be made by regulations for determining the graduated contributions payable where the whole or part of a person's remuneration in any employment is not paid weekly (and accordingly for determining the equivalent amounts mentioned in subsection (1) of this section), and may include provision for modifying subsection (3) of this section; and regulations may also, for the purpose of graduated contributions, make provision as to the intervals at which a person's remuneration or any part of it is to be treated as paid where it is not all paid at the same intervals of a week or longer and in the amounts due for those or for corresponding intervals.

• (7) Regulations may also in relation to graduated contributions make provision—

• (a) for calculating the amounts payable according to a prescribed scale or otherwise adjusting them so as to avoid fractional amounts or otherwise facilitate computation ; and

• (b) for requiring that the liability in respect of a payment made in an income tax week, in so far as it depends on any conditions as to a person's age or retirement, shall be determined as at the beginning of the week or as at the end of it; and

• (c) for securing that liability is not avoided or reduced by an employer following in the payment of persons employed any practice which is abnormal for their employments.

Automatic increases in contributions.

5

• (1) Subject to subsection (2) of this section, in each of the three years 1970, 1975 and 1980 the rates of contribution payable by insured persons and employers shall be increased (for that and subsequent years) as follows:—

• (a) beginning with the first Monday in April—

• (i) an addition of fivepence per week shall be made to the rate of each contribution payable under section 3(a)(i) or (b)(i) of this Act or payable by a boy or girl under the age of eighteen under section 3(c) or (d) of this Act; and

• (ii) an addition of tenpence per week shall be made to the rate of any other contribution payable under the said section 3 ; and

• (b) beginning with 6th April, an addition of a quarter percent, shall be made to the rate at which graduated contributions are calculated on the relevant amount of remuneration.

• (2) If the Minister with the consent of the Treasury by order so directs, the foregoing subsection shall have effect in relation to the increases to be made in any of the three years specified therein with the substitution for the references to fivepence, to tenpence and to a quarter of references to any less amounts specified by the order.

Variation of rates of flat-rate contributions to stabilise employment.

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• (1) Where it appears to the Treasury expedient so to do with a view to maintaining a stable level of employment, they may by order direct that contributions under section 3 of this Act, instead of being paid at the rates set out in Schedule 1 thereto, shall, for such periods as may be specified by or determined in accordance with the order, be paid at such higher or lower rates as may be so specified or determined, so, however, that an order under this section shall not provide for increasing or reducing the rate of any contribution as an employed person and the rate of the corresponding employer's contribution by different amounts.

• (2) Contributions payable in accordance with any order under this section shall be deemed for the purposes of this Act to be contributions payable in accordance with the relevant provisions of the said section 3 and Schedule 1.

Exchequer supplements.

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• (1) Subject to the provisions of this Act, there shall be paid out of moneys provided by Parliament, in such manner and at such times as the Treasury may determine, for each of the following contributions, being contributions under section 3 of this Act, the amount (hereafter in this Act referred to as " the Exchequer supplement") hereinafter respectively specified, that is to say—

• (a) for each contribution as an employed person of any description set out in column 1 of Part I of Schedule 1 to this Act, an amount equal to one quarter of the contribution for the time being set out in relation to that description in column 2 of the said Part I;

• (b) for each contribution as the employer of an employed person of any description set out in column 1 of Part II of the said Schedule 1, or of any person of any such description who is to be treated by virtue of the said Part II as an employed person, an amount equal to one quarter of the contribution for the time being set out in relation to that description in column 2 of the said Part II;

• (c) for each contribution as a self-employed or non employed person, an amount equal to one third of the contribution,

so, however, that the aggregate amount paid in any financial year for the Exchequer supplements in respect of contributions paid in that year shall not be less than one hundred and seventy million pounds.

• (2) For the purposes of the foregoing subsection, the number of contributions of any class paid in any period shall be estimated in such manner as the Treasury may determine.

Supplementary provisions with respect to contributions.

Payment, number and class of contributions.

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• (1) Subject to the provisions of this Act and of any regulations, no person shall be entitled to pay any contribution under this Act other than a contribution which he is liable to pay.

• (2) If any employer or insured person fails to pay at or within the time prescribed for the purpose any contribution which he is liable under this Act to pay, he shall be liable on summary conviction to a fine not exceeding ten pounds.

• (3) Apart from any graduated contribution—

• (a) a person shall not be liable to pay more than one contribution as an insured person for any contribution week; and

• (b) not more than one employer's contribution shall be payable in respect of any person for any contribution week.

• (4) Subject to the subsequent provisions of this section, an insured person shall be deemed for the purposes of the provisions of this Part of this Act relating to contributions to be—

• (a) an employed person as respects any contribution week during any part of which he is an employed person ;

• (b) a self-employed person as respects any contribution week during any part of which he is a self-employed person and during no part of which he is an employed person;

• (c) a non-employed person as respects any contribution week during no part of which he is either an employed or a self-employed person.

• (5) Where as respects any employed contributor's employment—

• (a) no services are rendered by an employed person in any contribution week; and

• (b) no remuneration is paid wholly or partly in respect of any day in that week other than a day on which he either—

• (i) is incapable of work and would but for the incapacity have been working; or

• (ii) does not work in a normal week,

then that employment shall, in relation to that week, be disregarded for the purposes of subsections (3) and (4) of this section; and regulations may provide as respects any period during which no services are rendered by an employed person that for the purposes of this subsection any payments which he receives or is entitled (whether conditionally or not) to receive in any prescribed circumstances are or are not to be deemed to be remuneration paid in respect of any day in that period.

• (6) Regulations may provide for disregarding for the purposes of subsections (3) to (5) of this section any employment in which a person engages or continues to be engaged solely or mainly for the purpose of acquiring or preserving a right or a larger right to benefit.

Contributions by persons under age of sixteen.

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Any person who on his entry into insurance is or was under the age of sixteen shall not be liable to pay a contribution as a non-employed person for any period before his attaining the age of sixteen ; and—

• (a) regulations may provide for crediting contributions to him for periods before his attaining that age, being periods for which he would have been liable to pay contributions as a non-employed person but for this section or, in the case of a period of absence from Great Britain, but for this section and any regulations made under section 103 of this Act;

• (b) for the purpose of calculating the yearly average of the contributions paid by or credited to him—

• (i) he shall not be deemed to attain or to have attained school leaving age before the date on which he attains the age of sixteen ;

• (ii) there shall nevertheless be taken into account any contributions as an employed or self-employed person paid by him for periods before the beginning of the contribution year in which he attains the age of sixteen.

Exception from liability for, and crediting of, contributions.

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• (1) Subject to the provisions of subsection (2) of this section, regulations may provide for—

• (a) excepting insured persons from liability to pay contributions under section 3 of this Act for periods—

• (i) of unemployment or of incapacity for work;

• (ii) of full-time education or of full-time unpaid apprenticeship;

• (iii) when they are not in receipt (or are deemed in accordance with the regulations not to be in receipt) of an income exceeding two hundred and sixty pounds a year or such higher annual income as may from time to time be prescribed,

and for such other periods as may be prescribed;

• (b) crediting such contributions to insured persons for—

• (i) periods for which they are excepted from liability to pay them by virtue of the foregoing paragraph; and

• (ii) the period between the beginning of the contribution year last preceding that in which they first became insured persons and their first entry into insurance.

• (2) Regulations made under paragraph (a)(iii) of the foregoing subsection shall not provide for excepting a person from liability to pay contributions otherwise than on that person's own application, but may provide for so excepting a person with effect from any date not earlier than thirteen weeks before the date on which his application was made; and regulations made under paragraph (b) of that subsection shall not provide for crediting contributions to a person excepted from liability to pay them by virtue of the said paragraph (a)(iii) otherwise than for the purpose of entitling that person to unemployment benefit or sickness benefit for periods after he has ceased to be so excepted.

Contributions of employed persons and employers.

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• (1) Except where regulations otherwise prescribe, an employer liable to pay a contribution in respect of a person employed by him shall in the first instance be liable to pay also, on behalf and to the exclusion of that person—

• (a) where the said contribution is a contribution under section 3 of this Act, any contribution under that section as an insured person payable by that person for the same contribution week;

• (b) where the said contribution is a graduated contribution, any graduated contribution as an employed person payable by that person in respect of the same payment of remuneration;

and for the purposes of this Act contributions paid by an employer on behalf of an insured person shall be deemed to be contributions by the insured person.

• (2) Notwithstanding any contract to the contrary, an employer shall not be entitled to deduct from the wages or other remuneration of a person employed by him, or otherwise to recover from such a person, any employer's contribution in respect of that person; and any employer who deducts or attempts to deduct the whole or any part of any employer's contribution in respect of any person from his wages or other remuneration shall be liable on summary conviction to a fine not exceeding ten pounds.

• (3) An employer shall be entitled to recover from an insured person—

• (a) in the case of a contribution under section 3 of this Act, subject to and in accordance with the provisions of section 12 of this Act and any regulations made under subsection (7) thereof; or

• (b) in the case of a graduated contribution, subject to and in accordance with regulations which shall include the like provision as is made by so much of section 12(2) of this Act as precedes the proviso thereto,

the amount of any contribution paid or to be paid by the employer on behalf of that person.

• (4) The Minister may, in such cases and on such conditions as he may prescribe, make an arrangement with any employer who is liable to pay employer's contributions under this Act and whose practice it is to engage persons through an employment exchange or other agency approved by the Minister whereby, in respect of persons so engaged by that employer or in the employ of that employer on the date of the arrangement, the performance of all or any of the duties required under this Act to be performed in connection with the payment of contributions by the employer in respect of those persons, whether on his own behalf or on behalf of those persons, shall be undertaken on behalf of the employer by the employment exchange or other agency.

• (5) For the purposes of this and the next following section, references to a person's remuneration shall be construed, in relation to any period, as including any payments which by virtue of regulations made under section 8(5) of this Act are deemed for the purposes of the said section 8(5) to be remuneration paid to him in respect of any day in that period.

Recovery by employer of insured person's flat-rate contributions.

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• (1) The provisions of this section shall have effect with respect to the recovery by an employer from an insured person of the amount of any contribution under section 3 of this Act paid or to be paid by the employer on behalf of that person.

• (2) Where the insured person receives from the employer any wages or other pecuniary remuneration in respect of an employed contributor's employment, the amount of any contribution paid or to be paid by the employer on behalf of the insured person shall, notwithstanding the provisions of any Act or any contract to the contrary, be recoverable by means of deductions from such wages or other remuneration due from the employer to that person and not otherwise:

Provided that—

• (a) no such deduction may be made from any wages or remuneration other than such as are paid wholly or partly in respect of the contribution week or part of the contribution week for which the contribution is payable or may become payable as the case may be; and

• (b) no such deduction may be made of any contribution not yet paid except where it is not payable until after the date when the said wages or remuneration are paid.

• (3) Where the wages or other pecuniary remuneration of an insured person are paid at calendar monthly intervals, then, notwithstanding the provisions of subsection (2) of this section, it shall be lawful for the employer, at his option, to recover from each such payment of wages or remuneration, in lieu of the amount authorised to be recovered by him in accordance with the said provisions, an amount equal to one-twelfth of the contributions paid or to be paid by the employer on behalf of the insured person during the calendar year :

Provided that—

• (a) where the employment commences after the beginning, or is to be terminated before the end, of a calendar year, the contributions paid or to be paid by the employer on behalf of the insured person during the calendar year shall be calculated for the purpose of ascertaining the said fraction of one-twelfth as though the employment continued throughout that year;

• (b) in calculating the said fraction of one-twelfth, fractions of a penny may be disregarded;

• (c) such adjustment (whether by way of repayment or increased or reduced deduction or otherwise) as may be necessary to secure that the amounts which have been recovered in accordance with this subsection are, when so adjusted, equal to the amounts which could have been recovered in accordance with the said subsection (2) shall be made between the employer and the insured person—

• (i) on the termination of the employment, that is to say, subject to paragraph (d) of this proviso, on the day on which the employment actually comes to an end, whether the termination is in accordance with the terms of the contract or not and whether or not employment is to be resumed at a later date;

• (ii) not later than three calendar months after any contribution week (being a week in respect of which an amount has been recovered by the employer under this subsection) during which the insured person is incapable of work and in respect of which, by virtue of section 8(5) of this Act, no contribution as an employed person was payable;

• (iii) at intervals of not more than one year during the employment;

• (d) for the purposes of this subsection, an employment in relation to which—

• (i) the employer begins, or ceases, to recover amounts in accordance with this subsection; or

• (ii) contributions on behalf of the insured person cease to be payable or Become payable at a different rate,

shall be treated as commencing, or terminating, upon that event.

• (4) The amount of any contribution not yet paid shall not be recoverable except under and in accordance with subsection (2) or (3) of this section; and if any person contravenes or fails to comply with subsection (2) or paragraph (a) or (c) of the proviso to subsection (3) of this section, he shall for each offence be liable on summary conviction to a fine not exceeding ten pounds or, where the offence consists of continuing such a contravention or failure after conviction thereof, ten pounds together with a further ten pounds for each day on which it is so continued.

• (5) Where the insured person does not receive any wages or other pecuniary remuneration from the employer but receives such remuneration from some other person, the amount of any contribution paid by the employer on behalf of the insured person shall (without prejudice to any other means of recovery) be recoverable from the insured person summarily as a civil debt if proceedings for the purpose are instituted within three months from the date on which the contribution was payable.

• (6) Where the insured person does not receive any wages or other pecuniary remuneration in respect of an employed contributor's employment either from his employer or from any other person, the employer shall be liable to pay the contributions payable both by himself and the insured person and shall not be entitled to recover any part thereof from the insured person.

• (7) Regulations with respect to such recovery as is mentioned in subsection (1) of this section may make provision additional to that made by this section and may vary or revoke any of the provisions of this section other than subsection (6) and so much of subsection (2) as precedes the proviso thereto.

• (8) In its application to Scotland, subsection (5) of this section shall have effect as if the word " summarily" were omitted.

Payment of contributions by Minister.

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Where a person is in receipt of a pension or allowance payable by the Minister by virtue of the Transfer of Functions (Ministry of Pensions) Order 1953, the Minister may with the consent of that person, notwithstanding anything in any Act, Royal Warrant, Order in Council, order or scheme, pay any contributions as a self-employed or non-employed person payable by that person, and deduct the amount so paid on his behalf from the pension or allowance payable to him.

General provisions as to payment and collection of contributions, etc.

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• (1) Regulations may provide—

• (a) for any matters incidental to the payment and collection of contributions under this Act, including the co-ordination thereof with the payment and collection of contributions under the Industrial Injuries Act and the modification in that behalf of that Act;

• (b) for treating, for the purpose of any right to benefit, contributions paid after the due dates as paid on those dates or on such later dates as may be prescribed, or as not having been paid;

• (c) for treating, for the purpose of any right to benefit, contributions payable by an employer on behalf of an insured person, but not paid, as paid where the failure to pay is shown not to have been with the consent or connivance of, or attributable to any negligence on the part of, the insured person;

• (d) for treating contributions of the wrong class or at the wrong rate as paid on account of the contributions properly payable or on account of contributions under the Industrial Injuries Act, and for treating contributions under that Act which were not payable as paid on account of contributions under this Act, notwithstanding anything in that Act;

• (e) for the return of contributions under this Act paid in error.

• (2) Where under regulations made by virtue of subsection (1) of this section contributions under this Act, with or without contributions under the Industrial Injuries Act, are payable by means of adhesive stamps, those stamps (hereafter in this Act referred to as " insurance stamps ") shall be prepared and issued in such manner as the Postmaster General, with the consent of the Treasury, may direct; and the Postmaster General may—

• (a) provide for the sale of insurance stamps through any post office; and

• (b) by regulations provide for applying, with the necessary adaptations as respects insurance stamps, all or any of the provisions (including penal provisions) of the Stamp Duties Management Act 1891, section 9 of the Stamp Act 1891 and section 63 of the Post Office Act 1953.

• (3) Regulations made by the Minister by virtue of this section providing for the payment of contributions, at the option of the persons liable to pay, either—

• (a) by means of adhesive stamps ; or

• (b) by some alternative method, the use of which involves greater expense in administration to the government departments concerned than would be incurred if the contributions were paid by means of such stamps,

may include provision for the payment to the Minister by any person who adopts any alternative method, and for the recovery by the Minister, of the prescribed fees in respect of the difference in the expense in administration.

Power to combine payment and collection of contributions with that of income tax.

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• (1) Regulations made under section 14(1) of this Act with the concurrence of the Commissioners of Inland Revenue may provide for graduated contributions to be paid, accounted for and recovered in like manner as, and with, income tax deducted from the emoluments of an office or employment by virtue of regulations under section 157 (pay as you earn) of the Income Tax Act 1952.

• (2) Any such regulations may—

• (a) make the like provision with respect to other contributions under this Act;

• (b) apply or extend with or without modifications in relation to any contributions any of the provisions of the Income Tax Acts or of regulations under the said section 157;

• (c) make provision for the appropriation of the payments made by any person between his liabilities in respect of income tax and contributions.

• (3) Sections 46 and 47 of the Finance Act 1960 shall apply in relation to regulations made by virtue of this section as they apply in relation to regulations made under the said section 157 ; and if a person fails to pay at or within the time prescribed for the purpose any sums which he is required by regulations made by virtue of this section to pay, he shall be liable to be proceeded against and punished under section 8(2) of this Act as for a failure so to pay a contribution under this Act, without proof of his failure so to pay any particular contribution.

• (4) The Commissioners of Inland Revenue shall at such times and in such manner as the Treasury may direct account to the Minister for, and pay to him, the sums estimated by the Commissioners, in such manner as may be so directed, to have been received by them as contributions in accordance with regulations made by virtue of this section.

• (5) With a view to securing that contribution years begin in the case of all or any insured persons with the first Monday in April, regulations may provide for contribution years not so beginning to be on any occasion shorter than fifty-two or longer than fifty-three weeks so as to end immediately before that Monday, and may modify the contribution conditions for any benefit and any other provisions of this Act in such manner as appears to the Minister to be expedient to take account of the shorter or longer contribution year.

Persons to be treated as employers.

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• (1) In relation to persons who—

• (a) are employed by more than one employer in any contribution week; or

• (b) work under the general control or management of some person other than their immediate employer.

and in relation to any other cases for which it appears to the Minister that special provision is needed, regulations may provide that for the purposes of this Act the prescribed person shall be treated as their employer; and regulations made by virtue of paragraph (b) of this subsection may provide for adjusting the rights between themselves of the person prescribed as the employer, the immediate employer and the persons employed.

• (2) References in this Act to a person's employer shall not be construed as including his employer in any employment other than one which is an employed contributor's employment or, in the case of a person who is not, but would if he were under pensionable age be, an insured person, an employment which would be an employed contributor's employment in his case if he were under that age.

Part II — Benefit

Preliminary.

Descriptions of benefit.

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Appropriate classes and yearly average of contributions.

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• (1) Subject to subsection (4) of this section—

• (a) references in this Act to contributions of the appropriate class in relation to benefit of a particular description shall be construed—

• (i) in relation to unemployment benefit, as references to contributions as an employed person;

• (ii) in relation to sickness benefit and maternity allowance, as references to contributions as an employed or self-employed person ;

• (iii) in relation to any other description of benefit, as references to contributions as an insured person of any class;

• (b) for the purposes of any reference in this Act to contributions of the appropriate class or their equivalent, there shall be treated as equivalent to a contribution of the appropriate class such number of contributions not of that class as may be prescribed.

• (2) Subject to the provisions of this Act, and in particular to section 9(b), paragraph 18(2) of Schedule 11 and subsections (3) and (4) of this section, any reference in this Act to the yearly average of the contributions paid by or credited to any person shall be construed as referring to contributions as an insured person only, and to that average (calculated in the prescribed manner) over the period—

• (a) beginning with the beginning of the contribution year in which he attained school leaving age; and

• (b) ending with the end of the last complete contribution year before the date as at which the average is to be ascertained.

• (3) For the purpose of calculating the yearly average of the contributions paid by or credited to a person who entered into insurance over the age of sixteen having attained that age after 5th July 1948, he shall not be deemed to have attained school leaving age before the date on which he attained the age of sixteen.

• (4) For the purposes of any such reference as is mentioned in subsection (1) or (2) of this section, there shall be left out of account any graduated contribution.

Unemployment benefit and sickness benefit.

Unemployment or sickness benefit.

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• (1) Subject to the provisions of this Act, a person who satisfies the requirements of subsection (2) or (3) of this section shall be entitled—

• (a) to unemployment benefit in respect of any day of unemployment which forms part of a period of interruption of employment;

• (b) to sickness benefit in respect of any day of incapacity for work which forms part of such a period,

at the weekly rate provided for by the said subsection (2) or, as the case may be, the said subsection (3).

• (2) If the person claiming unemployment benefit or sickness benefit for any day—

• (a) is under pensionable age on that day ; and

• (b) satisfies the contribution conditions set out in paragraph 1 of Schedule 2 to this Act,

the benefit shall be payable at the appropriate weekly rate specified in relation thereto in column 2 of Schedule 3 to this Act.

• (3) If the person claiming unemployment benefit or sickness benefit for any day—

• (a) is over pensionable age but has not retired from regular employment; and

• (b) would on that day be entitled to a retirement pension if he had retired from regular employment on attaining pensionable age and made the necessary claim,

the benefit shall be payable at the weekly rate at which, apart from any increase by virtue of any provision of this Act, the retirement pension would have been payable.

• (4) In determining for the purposes of subsection (3) of this section the rate at which a retirement pension would have been payable, section 30(7) of this Act shall be deemed not to apply.

• (5) In relation to a claimant or beneficiary who is a woman and is or has been married, the reference in subsection (3)(b) of this section to a retirement pension shall be construed as referring only to a retirement pension payable under section 30 of this Act by virtue of her own insurance.

• (6) A person shall not be entitled either to unemployment benefit or to sickness benefit for the first three days of any period of interruption of employment unless, within the period of thirteen weeks beginning with the first of those days, he has a further nine days of interruption of employment forming part of the same period of interruption of employment.

• (7) A woman who has been confined and is entitled to a maternity grant in respect of that confinement (or would be so entitled if she made the necessary claim) shall not be entitled to unemployment benefit or sickness benefit in respect of any day falling within the period of four weeks beginning with the date of the confinement; and this subsection shall apply in relation to a woman whose pregnancy is terminated otherwise than by confinement after she has become entitled to a maternity grant an expectation of her confinement as if she had been confined and the date of the confinement were the date on which her pregnancy is so terminated.

• (8) The amount payable by way of benefit under this section for any day of unemployment or of incapacity for work shall be one-sixth of the appropriate weekly rate.

Determination of days for which unemployment or sickness benefit is payable.

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• (1) For the purposes of any provision of this Act relating to unemployment benefit or sickness benefit—

• (a) a day shall not be treated in relation to any person—

• (i) as a day of unemployment unless on that day he is capable of work and is, or is deemed in accordance with regulations to be, available for employment in an employed contributor's employment;

• (ii) as a day of incapacity for work unless on that day he is, or is deemed in accordance with regulations to be, incapable of work by reason of some specific disease or bodily or mental disablement;

• (b) where a person is employed in any employed contributor's employment which has not been terminated, then, in any period of seven days commencing with the midnight between Saturday and Sunday, a day on which in the normal course that person would not work in that or any other employed contributor's employment shall not be treated as a day of unemployment unless each other day in that period (other than the day referred to in paragraph (e) of this subsection) on which in the normal course he would so work is a day of interruption of employment;

• (c) the expression " day of interruption of employment" means a day which is a day of unemployment or of incapacity for work;

• (d) any two days of interruption of employment, whether consecutive or not, within a period of six consecutive days shall be treated as a period of interruption of employment, and any two such periods not separated by a period of more than thirteen weeks shall be treated as one period of interruption of employment;

• (e) Sunday or such other day in each week as may be prescribed shall not be treated as a day of unemployment or of incapacity for work and shall be disregarded in computing any period of consecutive days.

• (2) Regulations may—

• (a) make provision (subject to subsection (1) of this section) as to the days which are or are not to be treated for the purposes of unemployment benefit and sickness benefit as days of unemployment or of incapacity for work;

• (b) prescribe respective circumstances in which, for the purposes of subsection (1)(b) of this section—

• (i) an employed contributor's employment which has not been terminated may be treated as if it had been terminated; or

• (ii) a day which falls during a period when a person's employment in an employed contributor's employment is suspended but does not fall to be treated as aforesaid and which, apart from the provisions of the regulations, would not fall to be treated as a day of interruption of employment may be treated as such a day.

Exhaustion of and requalification for benefit.

21

• (1) A person who, in respect of any period of interruption of employment, has been entitled to unemployment benefit for one hundred and eighty days shall not thereafter be entitled to that benefit for any day of unemployment (whether in the same or a subsequent period of interruption of employment) unless before that day he has requalified for benefit:

Provided that, in the case of a person who before exhausting his right to unemployment benefit under this subsection has qualified in accordance with regulations for additional days of unemployment benefit (depending on the contributions of the appropriate class paid by him and the unemployment benefit to which he has been entitled), this subsection shall apply with the substitution for the reference to one hundred and eighty days of a reference to such greater number of days as may be allowed by the regulations.

• (2) A person who—

• (a) in respect of the period between his entry into insurance and any day of incapacity for work has paid less than one hundred and fifty-six contributions of the appropriate class; and

• (b) before that day has been entitled, in respect of any period of interruption of employment (whether including that day or not), to sickness benefit for three hundred and twelve days,

shall not be entitled to sickness benefit for that day unless since the last of the said three hundred and twelve days and before that day he has requalified for benefit.

• (3) Where a person has exhausted his right to either of the said benefits—

• (a) he shall requalify therefor when he has paid thirteen contributions of the appropriate class in respect of contribution weeks begun or ended since the last day for which he was entitled to that benefit;

• (b) on his requalifying therefor, subsection (1) or (2), as the case may be, of this section shall again apply to him, but, in a case where the period of interruption of employment in which he exhausted his right to that benefit continues after his requalification, as if the part before and the part after his requalification were distinct periods of interruption of employment.

• (4) Regulations may provide for treating a person for the purposes of this section as having been entitled to benefit for any day if he would have been so entitled but for any delay or failure to make or prosecute a claim or give a notice :

Provided that a person shall not be so treated where he shows that he did not intend, by failing to acquire or establish a right to benefit for that day, to avoid the necessity of requalifying for benefit under this section.

Disqualifications and special conditions.

22

• (1) A person who has lost employment in an employed contributor's employment by reason of a stoppage of work which was due to a trade dispute at his place of employment shall be disqualified for receiving unemployment benefit so long as the stoppage of work continues, except in a case where, during the stoppage of work, he has become bona fide employed elsewhere in the occupation which he usually follows or has become regularly engaged in some other occupation:

Provided that this subsection shall not apply in the case of a person who proves—

• (a) that he is not participating in or financing or directly interested in the trade dispute which caused the stoppage of work; and

• (b) that he does not belong to a grade or class of workers of which, immediately before the commencement of the stoppage, there were members employed at his place of employment any of whom are participating in or financing or directly interested in the dispute.

• (2) A person shall be disqualified for receiving unemployment benefit for such period not exceeding six weeks as may be determined in accordance with Part IV of this Act if—

• (a) he has lost his employment in an employed contributor's employment through his misconduct, or has voluntarily left such employment without just cause;

• (b) after a situation in any suitable employment has been notified to him by an employment exchange or other recognised agency, or by or on behalf of an employer, as vacant or about to become vacant, he has without good cause refused or failed to apply for that situation or refused to accept that situation when offered to him ;

• (c) he has neglected to avail himself of a reasonable opportunity of suitable employment;

• (d) he has without good cause refused or failed to carry out any written recommendations given to him by an officer of an employment exchange with a view to assisting him to find suitable employment, being recommendations which were reasonable having regard to his circumstances and to the means of obtaining that employment usually adopted in the district in which he resides; or

• (e) he has without good cause refused or failed to avail himself of a reasonable opportunity of receiving training approved by the Minister of Labour in his case for the purpose of becoming or keeping fit for entry into or return to regular employment.

• (3) Regulations may provide for disqualifying a person for receiving sickness benefit for such period not exceeding six weeks as may be determined in accordance with Part IV of this Act if—

• (a) he has become incapable of work through his own misconduct; or

• (b) he fails without good cause to attend for or to submit himself to such medical or other examination or treatment as may be required in accordance with the regulations, or to observe any prescribed rules of behaviour.

• (4) Regulations may also provide for imposing in the case of any class of persons additional conditions with respect to the receipt of unemployment benefit or sickness benefit and restrictions on the rate and duration thereof, if, having regard to special circumstances, it appears to the Minister necessary so to do for the purpose of preventing inequalities, or injustice to the general body of employed persons or of employed and self-employed persons, as the case may be.

• (5) For the purposes of this section, employment shall not be deemed to be employment suitable in the case of any person if it is either—

• (a) employment in a situation vacant in consequence of a stoppage of work due to a trade dispute; or

• (b) employment in his usual occupation in the district where he was last ordinarily employed at a rate of remuneration lower, or on conditions less favourable, than those which he might reasonably have expected to obtain having regard to those which he habitually obtained in his usual occupation in that district, or would have obtained had he continued to be so employed ; or

• (c) employment in his usual occupation in any other district at a rate of remuneration lower, or on conditions less favourable, than those generally observed in that district by agreement between associations of employers and of employees, or, failing any such agreement, than those generally recognised in that district by good employers;

but, after the lapse of such an interval from the date on which he becomes unemployed as in the circumstances of the case is reasonable, employment shall not be deemed to be unsuitable by reason only that it is employment of a kind other than employment in his usual occupation if it is employment at a rate of remuneration not lower, and on conditions not less favourable, than those generally observed by agreement between associations of employers and of employees or, failing any such agreement, than those generally recognised by good employers.

• (6) In this section—

• (a) the expression " place of employment" in relation to any person, means the factory, workshop, farm or other premises or place at which he was employed, so, however, that, where separate branches of work which are commonly carried on as separate businesses in separate premises or at separate places are in any case carried on in separate departments on the same premises or at the same place, each of those departments shall for the purposes of this paragraph be deemed to be a separate factory or workshop or farm or separate premises or a separate place, as the case may be ;

• (b) the expression " trade dispute" means any dispute between employers and employees or between employees and employees which is connected with the employment or non-employment or the terms of employment or the conditions of employment of any persons, whether employees in the employment of the employer with whom the dispute arises or not.

Maternity benefit.

Maternity grant.

23

• (1) Subject to the provisions of this Act, a woman shall be entitled to a maternity grant of the amount specified in relation thereto in Schedule 4 to this Act if she has been confined and either—

• (a) she or her husband satisfies the contribution conditions set out in paragraph 2(1) of Schedule 2 to this Act; or

• (b) she satisfies either—

• (i) the contribution conditions for a maternity allowance; or

• (ii) any contribution conditions which she is required to satisfy in order to become entitled to a maternity allowance at a reduced rate by virtue of regulations under section 45 of this Act.

• (2) Except where regulations otherwise provide, a woman shall not be entitled to a maternity grant in respect of a confinement if on the date of the confinement she is outside Great Britain.

• (3) Regulations may provide that a woman confined of twins or a greater number of children shall, if the other conditions for the payment of a maternity grant are satisfied in respect of the confinement, be entitled to a maternity grant for each of them.

• (4) Regulations may provide that the provisions of this section shall apply to a woman, in a case where her claim indicates that she so desires, with the substitution for the condition that she has been confined of the condition that she is pregnant and has reached a stage in her pregnancy which is not more than the prescribed number of contribution weeks before that in which it is to be expected that she will be confined, and may modify the contribution conditions for a maternity grant in their application to such a case.

• (5) Subject to the provisions of subsection (3) of this section, a woman shall not be entitled to more than one maternity grant in respect of any one confinement.

• (6) For the purposes of this section the expression " husband " includes a widow's late husband where the benefit is claimed in respect of a posthumous son or daughter of his.

Maternity allowance.

24

• (1) Subject to the provisions of this Act, a woman shall be entitled to a maternity allowance at the weekly rate specified in relation thereto in column 2 of Schedule 3 to this Act if—

• (a) she is pregnant and has reached a stage in her pregnancy which is not more than the prescribed number of weeks before the week in which it is to be expected that she will be confined (in this section referred to as the " expected week of confinement"); and

• (b) she satisfies the contribution conditions set out in paragraph 3(1) of Schedule 2 to this Act.

• (2) Subject to the following provisions of this section, the period for which a maternity allowance is payable shall be the period of eighteen weeks beginning with the eleventh week before the expected week of confinement.

• (3) A woman who has become entitled to a maternity allowance shall cease to be entitled thereto if she dies before the beginning of the period mentioned in subsection (2) of this section; and if such a woman dies after the beginning but before the end of that period the allowance shall not be payable for any week subsequent to that in which she dies.

• (4) Regulations may provide that a woman who has become entitled to a maternity allowance shall cease to be entitled thereto if her pregnancy is terminated otherwise than by confinement.

• (5) Regulations may make provision, as respects cases where the date of the confinement occurs after the end of the expected week of confinement, for extending the period referred to in subsection (2) of this section until the end of such week (not being later than the sixth week after that in which the date of the confinement occurs) as may be prescribed by the regulations.

• (6) Regulations may modify subsections (1)(a) and (b), (2) and (3) of this section in relation to cases where a woman has been confined and either—

• (a) she has not made a claim for a maternity allowance in respect of expectation of that confinement (other than any claim which has been disallowed); or

• (b) she has made a claim for a maternity allowance in respect of expectation of that confinement (other than a claim which has been disallowed) but the date of the confinement was more than eleven weeks before the expected week of confinement,

and may modify the contribution conditions set out in paragraph 3(1) of Schedule 2 to this Act in their application to such cases by substituting references to the week comprising the date of the confinement for references to the expected week of confinement.

• (7) Regulations may provide for disqualifying a woman for receiving a maternity allowance if—

• (a) during the period for which the allowance is payable she does any work as an employed or self-employed person or fails without good cause to observe any prescribed rules of behaviour ; or

• (b) at any time before her confinement occurs she fails without good cause to attend for or to submit herself to any medical examination required in accordance with the regulations.

• (8) In this section the expression " week " means a contribution week.

Supplementary provisions as to maternity benefit, etc.

25

• (1) In this Part of this Act—

• (a) the expression " confinement" means labour resulting in the issue of a living child, or labour after twenty-eight weeks of pregnancy resulting in the issue of a child whether alive or dead, and the expression " confined " shall be construed accordingly ;

• (b) references to the date of the confinement shall be taken as referring, where labour begun on one day results in the issue of a child on another day, to the date of the issue of the child or, if the woman is confined of twins or a greater number of children, to the date of issue of the last of them.

• (2) The fact that the mother of an illegitimate child is entitled to maternity benefit shall not be taken into consideration—

• (a) by any justices in England and Wales in deciding whether or not they shall make an order under the Affiliation Proceedings Act 1957 for the payment of the expenses incidental to the birth of the child; or

• (b) by any court in Scotland in awarding inlying expenses in connection with the birth of the child.

Widow's benefit.

Widow's allowance.

26

• (1) Subject to the provisions of this Act, a widow shall be entitled to widow's allowance at the weekly rate specified in relation thereto in column 2 of Schedule 3 to this Act if—

• (a) the husband satisfied the contribution conditions set out in paragraph 4(1) of Schedule 2 to this Act; and

• (b) at the husband's death either he was not entitled to a retirement pension or she was under pensionable age.

• (2) The period for which widow's allowance is payable to a widow shall be the thirteen weeks next following the husband's death:

Provided that the allowance shall not be payable for any period after the widow's death or remarriage or for any period during which she is cohabiting with a man as his wife.

• (3) In this section the expression " the husband ", in relation to a woman who has been married more than once, refers only to her last husband.

Widowed mother's allowance.

27

• (1) Subject to the provisions of this Act, a widow shall be entitled to a widowed mother's allowance at the weekly rate specified in relation thereto in column 2 of Schedule 3 to this Act if the husband satisfied the contribution conditions set out in paragraph 4(1) of Schedule 2 to this Act and either—

• (a) the widow has a family which satisfies the condition specified in subsection (2) of this section; or

• (b) subject to such exceptions and conditions as may be prescribed, the widow has residing with her a person who is under the age of nineteen years and is, has been, or would, but for the fact that at the husband's death that person had attained the upper limit of the compulsory school age or was not in Great Britain, be or have been, a child falling within paragraph (a), (b) or (c) of the said subsection (2); or

• (c) the widow is pregnant by the husband.

• (2) The condition referred to in subsection (1)(a) of this section is that the widow's family includes a child with respect to whom one of the conditions specified in section 42(1) of this Act is for the time being satisfied and who either—

• (a) at the husband's death was, or could have been treated under paragraph 3 of the Schedule to the Family Allowances Act as, a child of his family; or

• (b) is a son or daughter of theirs ; or

• (c) subject to such exceptions and conditions as may be prescribed, having at the death of a previous husband of the widow by a marriage which ended with that husband's death been a child of that husband's family, was at the death of the last husband a child of the widow's family.

• (3) The period for which a widowed mother's allowance is payable to a widow shall be any period during which she satisfies the requirements of subsection (1)(a), (b) or (c) of this section and for which she is not entitled to a widow's allowance:

Provided that the allowance shall not be payable for any period after the widow's remarriage or for any period during which she is cohabiting with a man as his wife.

• (4) In this section, the expression " the husband ", in relation to a woman who has been married more than once, refers only to her last husband.

Widow's pension.

28

• (1) Subject to the provisions of this Act and in particular to paragraphs 2, 3 and 4 of Schedule 11 thereto, a widow shall be entitled to a widow's pension at the weekly rate specified in relation thereto in column 2 of Schedule 3 to this Act if the husband satisfied the contribution conditions set out in paragraph 4(1) of Schedule 2 to this Act and there are also satisfied either—

• (a) the conditions specified in subsection (2) of this section; or

• (b) the conditions specified in subsection (3) thereof.

• (2) The conditions referred to in subsection (1)(a) of this section are that at the husband's death—

• (a) he and the widow had been married for not less than three years; and

• (b) she was over the age of fifty but under the age of sixty-five.

• (3) The conditions referred to in subsection (1)(b) of this section are that the widow ceases, or has since 20th December 1964 ceased, to be entitled to a widowed mother's allowance at a time when—

• (a) she is or was over the age of fifty but under the age of sixty-five; and

• (b) three years have or had elapsed since the date of the marriage in respect of which the allowance is or was payable.

• (4) The period for which widow's pension is payable to a widow shall be any period during which she is under the age of sixty-five and for which she is not entitled to a widow's allowance or widowed mother's allowance:

Provided that the pension shall not be payable for any period after the widow's remarriage or for any period during which she is cohabiting with a man as his wife.

• (5) Where a widow has been married more than once—

• (a) references in this section to the husband shall refer only to her last husband ; and

• (b) regulations may relax, for the purpose of her right to a widow's pension in respect of her last marriage, the condition contained in subsection (2)(a) or (3)(b) of this section.

Guardian's allowance.

Guardian's allowance.

29

• (1) Subject to the provisions of this Act, and in particular to section 42(1) thereof, a person shall be entitled to a guardian's allowance at the weekly rate specified in relation thereto in column 2 of Schedule 3 to this Act in respect of any child who is for the time being a child of his family if—

• (a) the parents of the child are dead ; and

• (b) one at least of the parents was an insured person.

• (2) Regulations may modify paragraphs (a) and (b) of the foregoing subsection in relation to cases where—

• (a) a child has been adopted, or is illegitimate; or

• (b) the marriage of a child's parents was terminated by divorce; or

• (c) one of the child's parents is dead and the person claiming the allowance shows that he was at the date of the death unaware of, and has failed after all reasonable efforts to discover, the whereabouts of the other parent.

• (3) Regulations may provide for the payment of guardian's allowance under this section in respect of a child as if both parents of the child were dead in cases where one parent is dead and the surviving parent is serving (or is to be treated in accordance with the regulations as serving) a sentence of imprisonment of not less than the prescribed length or of imprisonment for life, or is (or is to be so treated as being) in legal custody in any other prescribed circumstances; and any such regulations may include provision—

• (a) for suspending payment of an allowance awarded by virtue of this subsection where the conviction, sentence or order in consequence of which it was awarded is subject to appeal, and for any matters arising from the decision of any such appeal; and

• (b) for requiring sums paid by virtue of this subsection by way of guardian's allowance in respect of a child for a period during which one of the child's parents is alive to be repaid by that parent to the National Insurance Fund.

• (4) Where subsection (1)(a) and (b) of this section have been modified by virtue of subsection (2) of this section so as to make guardian's allowance payable in respect of a child not on the death of the child's parents but on the death of two persons who are not the child's parents or of whom one is not the child's parent, subsection (3) of this section shall apply as if those persons were the child's parents.

• (5) In the case of a child who is a child of the family of a man and his wife, the wife only shall be entitled to a guardian's allowance, but subsections (2) to (6) of section 4 of the Family Allowances Act (which relate to the persons to receive an allowance under that Act payable in respect of such a child) shall apply in relation to a guardian's allowance as they apply in relation to an allowance under that Act.

Retirement pensions.

Retirement pension by virtue of own insurance.

30

• (1) Subject to the provisions of this Act, a person shall be entitled to a retirement pension at the appropriate weekly rate specified in relation thereto in column 2 of Schedule 3 to this Act if—

• (a) he is over pensionable age and has retired from regular employment; and

• (b) he satisfies the contribution conditions set out in paragraph 4(1) of Schedule 2 to this Act.

• (2) For the purposes of this Act, a person may, subject to subsection (3) of this section, be treated as having retired from regular employment at any time after he has attained pensionable age—

• (a) whether or not he has previously been engaged in a gainful occupation;

• (b) notwithstanding that he is engaged or intends to engage in a gainful occupation, if he is engaged or intends to engage therein only occasionally or to an inconsiderable extent or otherwise in circumstances not inconsistent with retirement, or if his earnings can be expected not to exceed, or only occasionally to exceed, the amount any excess over which would, under subsection (7) of this section, involve a reduction of the weekly rate of any retirement pension awarded to him.

• (3) For the purposes of this Act, but subject to subsection (4) of this section, a person shall not be treated as having retired from regular employment unless he has complied with the prescribed requirements as to notice of the date of his retirement and—

• (a) where the date of retirement specified in the notice falls before the date when the notice is given, that person shall not be treated as having so retired earlier than on the date of commencement of the prescribed period before the giving of the notice;

• (b) where the date of retirement specified in the notice falls after the date when the notice is given, an award of a retirement pension as from the date of retirement so specified may be made before that date but shall be conditional on that person's having retired on or before that date.

• (4) For the purposes of this Act a person who has not previously retired from regular employment shall be deemed so to retire on the expiration of five years from his attaining pensionable age.

• (5) References in this Act to the date of a person's retirement shall be construed in accordance with subsections (2) to (4) of this section.

• (6) Subject to the provisions of this Act, a retirement pension shall commence from the date of retirement and shall be payable for life.

• (7) Subject to any regulations under section 44(a) of this Act, where the earnings of a beneficiary who is less than five years over pensionable age have exceeded five pounds for the calendar week ending last before any week for which he is entitled to a retirement pension, the weekly rate of his pension shall for the last-mentioned week be reduced by sixpence for each complete shilling of the excess and a further sixpence for each complete shilling by which the earnings exceed six pounds:

Provided that this subsection shall not affect the rate of the pension for the first week after the date of the beneficiary's retirement.

Increase of pension under s. 30 for contributions after pensionable age.

31

• (1) Subject to section 30(7) of this Act, paragraphs 7 and 9 of Schedule 11 thereto and any regulations under subsection (2) of this section, the weekly rate of a retirement pension under the said section 30 shall be increased by one shilling for every twelve contributions (not being graduated contributions) as an employed or self-employed person paid by the beneficiary in respect of the period after his attaining pensionable age.

• (2) Regulations may provide that, in such cases and subject to such exceptions as may be prescribed, a contribution paid by a woman over pensionable age in respect of any contribution week for the whole of which—

• (a) she is entitled to widow's benefit or to a retirement pension by virtue of her husband's insurance ; or

• (b) her husband is entitled in respect of her to an increase of the weekly rate of any benefit,

shall be disregarded for the purposes of subsection (1) of this section.

Retirement pension by virtue of husband's insurance.

32

• (1) Subject to the provisions of this Act, and in particular to paragraph 5 of Schedule 11 thereto, a woman over pensionable age shall be entitled to a retirement pension by virtue of her husband's insurance at the appropriate weekly rate specified in relation thereto in column 2 of Schedule 3 to this Act if there are satisfied—

• (a) one of the conditions specified in subsection (2) of this section; and

• (b) the conditions specified in subsection (3) thereof.

• (2) The conditions referred to in subsection (1)(a) of this section are—

• (a) that the woman is married to the husband at the time when she attains pensionable age ; or

• (b) that she has married the husband after attaining that age.

• (3) The conditions referred to in subsection (1)(b) of this section are—

• (a) that either—

• (i) the husband is over pensionable age and both he and the woman have retired from regular employment; or

• (ii) the husband is dead ; and

• (b) that the husband satisfies the contribution conditions set out in paragraph 4(1) of Schedule 2 to this Act; and

• (c) in a case where the woman has married the husband after attaining pensionable age, such further conditions as may be prescribed.

• (4) Subject to the provisions of this Act, a retirement pension payable to a woman by virtue of subsection (1) of this section shall commence from the date on which the provisions of that subsection are satisfied in relation to the pension and shall be payable for life.

• (5) Section 30(7) of this Act shall apply to a retirement pension payable to a woman by virtue of her husband's insurance as it applies to a pension payable by virtue of a person's own insurance.

Special provisions as to retirement pensions for women.

33

• (1) A woman shall not be entitled for the same period to more than one retirement pension, but if she would be so entitled but for this subsection may, on such occasion and in such manner as may be prescribed, choose which she shall be entitled to.

• (2) Where on attaining pensionable age a woman is married, she shall not be entitled under section 30 of this Act to a retirement pension by virtue of her own insurance unless either—

• (a) the number of contributions paid by or credited to her in respect of the period between the date of the marriage and her attaining pensionable age is not less than one half of the number of complete contribution weeks in that period ; or

• (b) the said period is less than three years.

• (3) Subject to paragraph 6 of Schedule 11 to this Act, where immediately before attaining pensionable age a woman is a widow, she may elect that, in calculating for the purpose of her right under the said section 30 to a retirement pension by virtue of her own insurance the yearly average of the contributions paid by or credited to her, there shall be treated as so paid or credited either—

• (a) for each contribution year falling wholly or partly before the death of her husband (being, if she has been married more than once, her last husband); or

• (b) for each contribution year falling wholly or partly during the period of their marriage,

a number of contributions equal to the yearly average (ascertained as at the date of his attaining pensionable age or dying under that age) of the contributions paid by or credited to him, instead of the number of contributions actually paid by or credited to her for that year.

• (4) Any reference in this section to contributions shall be construed as a reference to contributions other than graduated contributions.

Increase in woman's retirement pension in certain cases.

34

• (1) Subject to section 30(7) of this Act and to paragraph 8 of Schedule 11 thereto, in respect of any contributions as an employed or self-employed person paid by a man for any period after his attaining pensionable age—

• (a) the weekly rate of any retirement pension under section 32 of this Act payable to his wife or widow by virtue of his insurance shall be increased by sixpence for every twelve contributions other than those paid for a period before she attains pensionable age ; and

• (b) the weekly rate of any retirement pension payable to his widow under the said section 32 by virtue of his insurance or under section 30 of this Act by virtue of her own insurance shall be increased by sixpence for every twelve contributions (in addition to the increase, if any, under paragraph (a) of this subsection).

• (2) Subject to the said paragraph 8, where by virtue of such an election as is provided for by section 35 of this Act a woman pays or has paid contributions as an employed or self-employed person for a period after her attaining pensionable age, then in relation to a retirement pension under the said section 32 payable to her by virtue of her husband's insurance the contributions so paid by her for any period after his death shall be taken into account under subsection (1) of this section as if they were contributions paid by the husband as mentioned in that subsection.

• (3) In relation to a woman married after attaining pensionable age, the foregoing provisions of this section shall have effect subject to any prescribed modifications.

• (4) Any reference in this section to contributions shall be construed as a reference to contributions other than graduated contributions.

Re-entry into regular employment after retirement.

35

• (1) Regulations may provide that, in the case of a person of such description as may be prescribed who—

• (a) has retired from regular employment or has otherwise become entitled to a retirement pension but is, in the case of a woman, under the age of sixty-five or, in the case of a man, under the age of seventy; and

• (b) elects, in such manner and in accordance with such conditions as may be prescribed, that the regulations shall apply in his case,

this Act shall have effect as if that person had not retired or become entitled as aforesaid:

Provided that, where a husband and wife have both become entitled to retirement pensions by virtue of the husband's insurance, the husband shall not be entitled to elect as aforesaid without the consent of the wife, unless that consent is unreasonably withheld.

• (2) Any such regulations may make such modifications of this Act in its application in a case where a person elects as aforesaid as may appear to the Minister necessary or expedient, and may in particular provide for determining how contributions (other than graduated contributions) paid by that person, whether before or after that person's first retirement or, as the case may be, first becoming entitled to a retirement pension, are to be dealt with for the purposes of section 31(1) of, or paragraph 7 or 8(2) of Schedule 11 to, this Act.

Graduated retirement benefit

Graduated retirement benefit.

36

• (1) Subject to the provisions of the Act, graduated retirement benefit shall be payable to any person who is over pensionable age and who is entitled to a retirement pension, and shall be an increase in the weekly rate of his retirement pension equal to 17.83 pence for each unit, ascertained in accordance with subsections (2) and (3) of this section, of the graduated contributions properly paid by him as an insured person, the result being rounded to the nearest whole penny, taking ½p as nearest to the next whole penny above.

• (2) For the purpose of graduated retirement benefit , a unit of graduated contributions shall be £7.50.

• (3) Where a person’s graduated contributions calculated at the said rate do not make an exact number of units any incomplete fraction of a unit shall, if it is one-half or more, be treated as a complete unit.

• (4) Where a person's entitlement to graduated retirement benefit is deferred—

• (a) Schedule 2 to the Social Security (Graduated Retirement Benefit) (No.2) Regulations 1978; and

• (b) Schedule 1 to the 2005 Regulations,

shall have effect and both those Schedules shall be construed and have effect as if they were part of this subsection.

• (4A) For the purposes of subsection (4), a person's entitlement to graduated retirement benefit is deferred—

• (a) where he would be entitled to a Category A or Category B retirement pension but for the fact that his entitlement is deferred within the meaning in section 55(3) of the Social Security Contributions and Benefits Act 1992, if and so long as his entitlement to such a pension is deferred;

• (b) where he is treated under subsection (7) as receiving a Category A or a Category B retirement pension at a nominal weekly rate, if and so long as he does not become entitled to graduated retirement benefit by reason only of not satisfying the conditions in section 1 of the Social Security Administration Act 1992 (entitlement to benefit dependent on claim),

and in relation to graduated retirement benefit, “period of deferment” shall be construed accordingly.

• (5) For the purposes of subsection (4) of this section, the Secretary of State may by regulations provide for treating all or any of the graduated contributions paid by a person in the tax year in which he attained pensionable age as having been paid before, or as having been paid after, the day on which he attained that age, whether or not the contribution in question was so paid.

• (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (7) A person who attained pensionable age before 6 April 2016 and has claimed, but is not entitled to a retirement pension (except a person who is not so entitled because of an election under section 54(1) of the Social Security Contributions and Benefits Act 1992 or because he has withdrawn his claim), shall be treated for the purposes of the foregoing provisions of this section as receiving a retirement pension at a nominal weekly rate:

• (a) this subsection shall not confer any right to graduated retirement benefit on a person who would be entitled to a retirement pension but for some provision of the Act or of regulations disqualifying him for receipt of it; and

• (b) regulations may provide that any right by virtue of this subsection to benefit at less than a specified weekly rate shall be satisfied either altogether or for a specified period by the making of a single payment of the prescribed amount.

• (8) In this section and in section 37 below—

• “graduated contributions” means graduated contributions under the National Insurance Act 1965 or the National Insurance Act 1959;

• “insured person” means insured person under the National Insurance Act 1965 or the National Insurance Act 1946;

• “retirement pension” means retirement pension of any category under the Social Security Contributions and Benefits Act 1992;

• “the Act” means the Social Security Act 1975;

• “the 2005 Regulations” means the Social Security (Graduated Retirement Benefit) Regulations 2005,

and any reference in section 37 below to “section 36 of this Act” or to any of its subsections is a reference to that section or subsection as it is here set out.

• (9) This section and section 37 below and the Act shall be construed and have effect as if this section and section 37 below were included in Chapter I of Part II or that Act (contributory benefits); and references to that Chapter, that Part of that Act in any other enactment or in any instrument shall be construed accordingly:

• (10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Special provisions as to graduated retirement benefit for widows.

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• (1) Subject to the provisions of this section and to Schedule 1 to the 2005 Regulations , where a person, having paid graduated contributions as an insured person, dies leaving a widow, widower , surviving same sex spouse or surviving civil partner and the survivor—

• (a) has attained pensionable age at the time of the death; or

• (b) remains that person's widow, widower , surviving same sex spouse or surviving civil partner (as the case may be) when attaining pensionable age,

then section 36 of this Act shall apply as if the increase in the weekly rate of the retirement pension of the widow, widower , surviving same sex spouse or surviving civil partner, as the case may be, provided for by subsection (1) thereof were the amount there specified by reference to his or her graduated contributions with the addition of one-half of the weekly rate of the graduated retirement benefit of his or her former spouse or civil partner (any amount including ½p being rounded to the next whole penny above) ....

• (2) For the purposes of subsection (1) of this section, the weekly rate of the deceased spouse’s or civil partner's graduated retirement benefit shall (whether or not he or she was receiving or entitled to receive any such benefit) be taken to have been the weekly rate appropriate to the amount of graduated contributions paid by him or her (determined as if any orders which have come into force under section 124 of the Act (increases in rates of benefit) since the date of the deceased spouse’s or civil partner's death had come into force before that date), excluding any addition under section 37(1) of this Act, but including any addition under section 36(4) thereof (and for the purpose of calculating the addition under section 36(4), taking into account any addition under section 37(1)); and where at his or her death he or she had attained pensionable age but had not become entitled to graduated retirement benefit, that addition shall be computed as if he or she had ... become entitled to graduated retirement benefit immediately before his or her death.

• (3) A person’s right to graduated retirement benefit by virtue of this section shall be brought into account under section 36(4) of this Act in determining the graduated retirement benefit payable to him or her under the said section 36:

• (4) A person’s right to graduated retirement benefit by virtue of this section in respect of a spouse he or she marries , or as the case may be, a civil partner he or she forms a civil partnership with, after attaining pensionable age shall be subject to such additional conditions as may be prescribed; and except as may be provided by regulations a person more than once married or who has formed a civil partnership more than once or who has been both married and a civil partner shall not be entitled for the same period to any graduated retirement benefit by virtue of this section in respect of more than one of his or her spouses or civil partners.

• (5) Regulations may provided that where a woman is entitled to graduated retirement benefit and to a widowed mother’s allowance the graduated retirement benefit shall be an increase in the weekly rate of that allowance; and where the benefit is such an increase, section 36(7) of this Act shall not apply.

Child's special allowance.

Child's special allowance.

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Death grant.

Death grant.

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• (1) Subject to the provisions of this Act, and in particular to paragraph 10 of Schedule 11 thereto, a death grant of the amount specified in relation thereto in Schedule 4 to this Act shall be payable in respect of the death of any person (hereafter in this section referred to as " the deceased") if the deceased either himself satisfied the contribution conditions set out in paragraph 5(1) of Schedule 2 to this Act, or was at death the husband, wife, widower, widow, or a child of the family, of a person satisfying those conditions, or a child who—

• (a) had immediately before the death of some other person satisfying those conditions, been a child of the family of that other person ; or

• (b) was a posthumous son or daughter of a man satisfying those conditions.

• (2) With respect to cases where the deceased was at death a child but the requirements of the foregoing subsection are not satisfied, regulations may provide for death grant to be payable if the contribution conditions aforesaid were satisfied by such other person as may be prescribed.

• (3) Where at his death the deceased was not a child but was under the age of nineteen years and would, if he had been under the age of sixteen years, have been a child by virtue of section 2(1)(c) of the Family Allowances Act (which relates to persons incapacitated by reason of illness or disability of mind or body), then, for the purposes of the foregoing provisions of this section, the deceased shall be treated as if he had been a child at his death.

• (4) Except where regulations otherwise provide, a death grant shall not be payable in respect of a death occurring outside Great Britain.

Benefit in respect of children.

Increase of benefit for children.

40

• (1) Subject to subsections (5) and (6) of this section and to sections 41(4) and 42 of this Act, the weekly rate of unemployment benefit, sickness benefit, a maternity allowance, a retirement pension or a widow's allowance shall, for any period for which the beneficiary has a family which includes a child or children, be increased in respect of that child or each respectively of those children by the appropriate amount specified in relation to the benefit in question in column 3, 4 or 5 of Schedule 3 to this Act.

• (2) In the application of subsection (1) of this section to a maternity allowance, references therein to a child or children shall include references to any child or children born to the beneficiary on the occasion of the confinement by reason of whose actual or expected occurrence she became entitled to the allowance.

• (3) Subject to section 42 of this Act, the weekly rate of a widowed mother's allowance payable by virtue of subsection (1)(a) of section 27 of this Act shall be increased for any period in respect of the child or, if more than one, each respectively of the children falling within paragraph (a), (b) or (c) of subsection (2) of the said section 27 for the time being included in her family by the appropriate amount specified in relation to that allowance in the said column 3, 4 or 5.

• (4) Subject to section 42 of this Act, the weekly rate of a child's special allowance shall, for any period for which the beneficiary has a family which includes two or more children with respect to whom the conditions specified in section 38(b) and (c) of this Act are satisfied, be increased in respect of each respectively of those children other than the elder or eldest by the appropriate amount specified in relation to that allowance in the said column 4 or 5.

• (5) Where the beneficiary by whom an increase of benefit under this section is claimed is a married woman residing with her husband, it shall be an additional condition with respect to receipt of that increase that her husband is incapable of self-support.

• (6) Regulations may provide that subsection (1) of this section shall cease to apply to a maternity allowance or shall apply to such an allowance only in prescribed cases.

Additional provisions with respect to increase of benefit for children.

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• (1) The provisions of this section shall have effect with respect to increases under section 40 of this Act of benefits other than a child's special allowance.

• (2) Subject to section 42 of this Act, a child of the family of any woman for the time being residing with the beneficiary shall be treated for the purposes of the said section 40 as a child of the beneficiary's family if the child—

• (a) is an illegitimate son or daughter of theirs; or

• (b) was born not less than six months before the day for which the increase provided for by that section is claimed and wholly or mainly maintained by the beneficiary throughout the six months ending immediately before that day.

• (3) Subject to the said section 42, where a man is entitled to unemployment benefit, sickness benefit or a retirement pension, there shall be treated for the purposes of the said section 40 as included in the beneficiary's family any child who, on the day for which the increase provided for by that section, is claimed, though not so included, could have been treated under paragraph 3 of the Schedule to the Family Allowances Act as so included, or could have been treated under that paragraph as so included but for the fact that the beneficiary is contributing to the cost of providing for the child at a weekly rate which, though not less than the prescribed rate, is less than the minimum rate for the time being required for the purposes of section 3(2) of that Act.

• (4) In the case of a retirement pension—

• (a) section 40(1) of this Act, so far as it relates to the amount of the increase, shall have effect subject to section 30(7) of this Act;

• (b) where a man and his wife are both entitled to a pension by virtue of his insurance—

• (i) they shall not both be entitled for the same period to an increase under the said section 40(1) in respect of the same child;

• (ii) if they would both (but for this paragraph) be entitled for the same period to such an increase at the rate applicable to an only, elder or eldest child in respect of different children, one of them shall be entitled to an increase at that rate and the other (subject to sub-paragraph (i) of this paragraph) to an increase at the rate applicable to a child other than an only, elder or eldest child;

• (c) for any reference in subsection (2) of this section to the day for which the increase provided for by the said section 40 is claimed there shall be substituted a reference to the date of retirement or, where the beneficiary is a woman who became entitled to the pension without having retired, the date when she so became entitled;

and where, but for paragraph (b) of this subsection, a man and his wife would both be entitled to an increase of a retirement pension under the said section 40(1), regulations may make provision as to their priority.

Limitations on payment of benefit in respect of children.

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• (1) Where, apart from this subsection, a person is entitled to receive, in respect of a particular child who is, or who falls to be treated for the purposes of the relevant provision as, a child of that person's family, payment of an amount by way of a guardian's allowance under section 29 or a child's special allowance under section 38 of this Act or of an increase under any of the provisions of section 40 of this Act of any benefit, that amount shall not be payable unless one of the following conditions is satisfied, that is to say—

• (a) that the child in question is living with the beneficiary ; or

• (b) that contributions to the cost of providing for the child in question are being made at a weekly rate not less than that of the amount in question by the beneficiary, or, where the beneficiary is one of spouses living together, by those spouses taken together, being, if an allowance under the Family Allowances Act is payable in respect of the child as a child of the beneficiary's family, contributions over and above those required for the purposes of section 3(2) of that Act or, as the case may be, for the purposes of the proviso to paragraph 1(1) of the Schedule to that Act.

• (2) For the purposes of the foregoing subsection, a child's special allowance shall be treated as a payment in respect of an only, or the elder or eldest, child with respect to whom the conditions specified in section 38(b) and (c) of this Act are satisfied, without prejudice, however, to any payment by way of an increase of the allowance in respect of any other such child under section 40(4) of this Act.

• (3) Where a person is entitled in respect of a child to a guardian's allowance under section 29 of this Act, the amount, if any, payable to that or any other person by way of any other benefit under this Act in respect of children of any family shall be such, and such only, as would be payable if the first-mentioned child were not included or treated as included in any family.

Benefit in respect of adult dependants.