National Insurance Act 1965

Increase of benefit for adult dependants.

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• (1) Subject to the provisions of this section, the weekly rate of unemployment benefit, sickness benefit or a retirement pension shall be increased by the amount respectively specified in relation to the benefit in question in column 6 of Schedule 3 to this Act for any period during which—

• (a) the beneficiary is—

• (i) residing with his wife ; or

• (ii) contributing to the maintenance of his wife at a weekly rate of not less than the said amount; and

• (b) his wife is not engaged in any gainful occupation or occupations from which her weekly earnings exceed that amount.

• (2) Subject to subsection (3) of this section, the weekly rate of unemployment benefit or sickness benefit shall, except in the case of a beneficiary entitled to an increase thereof in respect of his wife under subsection (1) of this section, be increased by the amount specified as aforesaid—

• (a) for any period during which the beneficiary is wholly or mainly maintaining her husband and he is incapable of self-support; or

• (b) for any period during which the beneficiary has residing with him and is wholly or mainly maintaining such other relative as may be prescribed, being a relative in relation to whom such further conditions as may be prescribed are fulfilled ; or

• (c) for any period during which some female person (not being a child) has the care of a child or children of the beneficiary's family, or of a child or children treated as such for the purposes of section 40 of this Act, being a person in relation to whom such further conditions as may be prescribed are fulfilled:

Provided that a beneficiary shall not be entitled for the same period to an increase of benefit under this subsection in respect of more than one person.

• (3) Where a person is entitled to unemployment benefit or sickness benefit by virtue of section 19(3) of this Act—

• (a) paragraphs (a) and (b) of subsection (2) of this section shall not apply ; and

• (b) if the beneficiary would have been entitled only by virtue of section 45 of this Act to the retirement pension by reference to which the weekly rate of the unemployment benefit or sickness benefit is determined, the amount of any increase under this section of that weekly rate shall be that which would have been applicable by virtue of the said section 45 in the case of such an increase of the weekly rate of that pension.

• (4) The weekly rate of a retirement pension shall be increased by the amount specified as aforesaid for any period with respect to which the requirements of subsection (2)(c) of this section are satisfied in respect of the beneficiary:

Provided that this subsection shall not apply if the beneficiary—

• (a) is a man entitled to an increase in respect of his wife under subsection (1) of this section ; or

• (b) is a man whose wife is entitled to a retirement pension by virtue of his insurance ; or

• (c) is a woman entitled to the pension by virtue of her husband's insurance.

• (5) In the case of a retirement pension, this section, so far as it relates to the amount of the increase, shall have effect subject to section 30(7) of this Act.

• (6) Subject to subsection (7) of this section, the weekly rate of a maternity allowance shall be increased by the amount specified as aforesaid for any period such as is mentioned in subsection (2)(a), (b) or (c) of this section, but a woman shall not be entitled for the same period to an increase of benefit by virtue of this subsection in respect of more than one person.

• (7) The weekly rate of a maternity allowance shall not be increased under subsection (6) of this section in respect of any person for any such period as is mentioned in subsection (2) (b) or (c) of this section unless the beneficiary would, if she were entitled to sickness benefit for that period, be entitled for that period to an increase of sickness benefit in respect of that person if she had made the necessary claim ; and for the purpose of the application of the provisions of this subsection, any such period shall be deemed not to include any day which under section 20(1)(e) of this Act is to be disregarded in computing a period of consecutive days for the purposes of any provision of this Act relating to unemployment benefit or sickness benefit.

• (8) Regulations may provide that the weekly rate of a maternity allowance shall no longer be increased under subsection (6) of this section, or shall be so increased only in prescribed cases, and may vary or revoke the provisions of subsection (7) of this section.

• (9) In this section, the expression " relative" does not include any person who is a child, but includes a person who is a relative by marriage or adoption and a person who would be a relative if some person born illegitimate had been born legitimate.

Additional rights to benefit.

Power to alter earnings rules.

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Regulations may—

• (a) alter—

• (i) the amount of earnings which under section 30(7) of this Act is to be taken into consideration in calculating the weekly rate of the pension of any classes of beneficiary;

• (ii) the sum by which under the said section 30(7) the weekly rate of the pension is to be reduced for each shilling of the excess ;

• (b) notwithstanding anything in section 36(6) of this Act, provide that the said section 30(7) shall not reduce the amounts payable as graduated retirement benefit, but that those amounts shall be payable as if that benefit were a separate benefit not subject to the said section 30(7).

Partial satisfaction of contribution conditions.

45

• (1) Subject to the provisions of this section, regulations may provide for entitling to unemployment benefit, sickness benefit, a maternity allowance, widow's benefit, a retirement pension or a death grant persons who would be entitled thereto but for the fact—

• (a) in the case of benefit of any description other than maternity allowance, that the relevant contribution conditions are not satisfied as respects the number of contributions paid or credited in a contribution year or the yearly average of contributions paid or credited ;

• (b) in the case of maternity allowance, that the relevant contribution conditions, though satisfied as respects the twenty-six contributions required to have been actually paid, are not satisfied as respects the fifty contributions required to have been paid by or credited to the claimant.

• (2) The reference in subsection (1)(b) of this section to the relevant contribution conditions includes a reference to those conditions as modified by regulations in their application to cases falling within section 24(6) of this Act.

• (3) Regulations under this section shall provide that benefit payable by virtue of any such regulations shall be payable at a rate, or shall be of an amount, less than that specified in Schedule 3 or 4 to this Act, and the rate or amount prescribed by the regulations may vary with the extent to which the contribution conditions are satisfied:

Provided that the amount of—

• (a) any increase of benefit in respect of a child ; and

• (b) any increase of a retirement pension in respect of contributions paid after attaining pensionable age,

shall be the same as if the relevant contribution conditions had been fully satisfied.

• (4) Regulations under this section shall apply to child's special allowance in like manner as they apply to widow's benefit, except that the weekly rate of such an allowance payable by virtue of those regulations shall be the same as if the relevant contribution conditions had been fully satisfied.

Supplementary schemes.

46

• (1) Any body of persons claiming to represent, or to be entitled to be treated as representing, insured persons of any class and (if or in so far as the class is a class of employed persons) their employers may submit to the Minister a scheme (hereafter in this Act referred to as a " supplementary scheme ") for supplementing the rights conferred on those insured persons by this Act, whether by providing for additional payments in cases for which benefit is provided by this Act, or by providing for payments in other cases, or otherwise.

• (2) The Minister may by order approve, whether with or without amendment, any supplementary scheme if he is satisfied that it is expedient that the scheme should come into operation:

Provided that the Minister before approving a supplementary scheme shall take steps to ascertain so far as practicable the views of any insured persons or employers affected thereby who in his opinion are not represented by the body submitting the scheme.

• (3) Subject to the provisions of this section, a supplementary scheme may—

• (a) apply for the purposes of the scheme (including in particular the purpose of determining any question as to the application of the scheme to any person or class of persons) any of the provisions of this Act or of regulations, with or without modifications ;

• (b) make such provision for the constitution of a body to be charged with the administration of the scheme and with respect to the supervision of the administration of the scheme and accounts as the Minister considers to be necessary for the purpose of giving effect to the scheme (including provision for the making of returns to the Minister as to matters affecting the operation of the scheme);

• (c) provide for the participation of the Minister in the administration of the scheme to such an extent and for such purposes as may be therein specified;

• (d) provide for the defraying, out of any funds which may be available for the purposes of the scheme, of such fees and other charges as may be determined by the Minister, with the concurrence of the Treasury, in respect of the participation of the Minister in the administration of the scheme as aforesaid ;

• (e) contain such other provisions as the Minister considers to be necessary for the purpose of giving effect to the scheme.

• (4) A supplementary scheme may empower the body charged with the administration of the scheme to make, if the Minister so directs, such temporary modifications in any of the rates of contribution or the rates or periods of benefit under the scheme as are, in the opinion of the Minister, sufficient to secure the solvency of the fund constituted under the scheme.

• (5) No part of the funds required for providing benefits under a supplementary scheme or otherwise in connection therewith shall be derived from moneys provided by Parliament:

Provided that nothing in this subsection shall prevent the making, in respect of persons whose remuneration is or may be defrayed out of moneys provided by Parliament, of a scheme whereunder contributions are payable by employers.

• (6) The provisions of this Act other than this section and section 47 thereof, and the provisions of any regulations, shall not, except in so far as they are applied by a supplementary scheme, apply to or have effect in relation to or for the purposes of the scheme.

• (7) Subject to the said section 47, a supplementary scheme when approved by the Minister shall continue in force until determined in accordance with the provisions thereof.

Amendment or consolidation of supplementary schemes.

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• (1) The Minister may by order—

• (a) vary or amend the provisions of a supplementary scheme in any manner and at any time if so requested by—

• (i) the body by whom it was submitted, or any other body of persons which in his opinion is concerned as representing insured persons or employers ; or

• (ii) the body charged with the administration of the scheme; and

• (b) where it appears to him that, having regard to any periodic audit and valuation, the fund constituted under the scheme—

• (i) is or is likely to become, and is likely to continue to be, insufficient to discharge its liabilities ; or

• (ii) is and is likely to continue to be more than reasonably sufficient to discharge its liabilities,

after consultation with the last-mentioned body make such modifications in any of the rates of contribution or the rates or periods of benefit under the scheme as appear to him to be required in order to make the fund, as the case may be, sufficient or no more than reasonably sufficient to discharge its liabilities.

• (2) An order under subsection (1) of this section with respect to any supplementary scheme may replace all or any of the provisions of the scheme (whether or not previously amended, varied or modified under that subsection) with new provisions consolidating those provisions as they are to have effect with the amendments, variations or modifications to be made by the order.

• (3) The Minister after consulting the body charged with the administration of a supplementary scheme may make an order under this subsection for the purpose of consolidating the provisions of the scheme as for the time being amended, varied or modified.

• (4) Any order made by virtue of subsection (2) or (3) of this section may revoke previous orders under this section relating to the scheme so far as they are superseded by the consolidation or have otherwise become obsolete or unnecessary.

Miscellaneous provisions as to benefit.

Claims and notices.

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• (1) Subject to subsection (2) of this section and to paragraph 5(2) of Schedule 11 to this Act, it shall be a condition of any person's right to any benefit that he makes a claim therefor in the prescribed manner.

• (2) Any claim for any benefit under this Act may be treated—

• (a) for the purposes of this section as a claim, in the alternative, for such other benefit thereunder as may be prescribed; or

• (b) for the purposes of the Industrial Injuries Act as a claim, in the alternative, for such benefit under that Act as may be prescribed; or

• (c) for the purposes of the Family Allowances Act (in any prescribed cases) as a claim, in the alternative, for a payment under that Act;

and any claim for benefit under the Industrial Injuries Act or a payment under the Family Allowances Act may be treated for the purposes of this section as a claim, in the alternative, for such benefit under this Act as may be prescribed.

• (3) For the purposes of this Part of this Act any claim or notice made or sent by post shall be deemed to have been made or given on the day on which it was posted.

Disqualification for or suspension of benefit.

49

• (1) Except where regulations otherwise provide, a person shall be disqualified for receiving any benefit, and an increase of benefit shall not be payable in respect of any person as the beneficiary's wife or husband, for any period during which that person—

• (a) is absent from Great Britain; or

• (b) is undergoing, imprisonment or detention in legal custody.

• (2) Regulations may provide for the suspension of payment to or in respect of any person during any such period as aforesaid of benefit which is excepted from the operation of subsection (1) of this section or which is payable otherwise than in respect of that period.

• (3) Regulations may provide for disqualifying a person—

• (a) subject to paragraph 5(2) of Schedule 11 to this Act, for the receipt of any benefit if he fails to make his claim therefor within the prescribed time; and

• (b) for the receipt of sickness benefit if he fails, on becoming or again becoming incapable of work, to give the prescribed notice of that fact within the prescribed time:

Provided that any such regulations shall provide for extending, subject to any prescribed conditions, the time within which the claim may be made or notice may be given in cases where good cause is shown for delay.

• (4) Notwithstanding any regulations made by virtue of the proviso to subsection (3) of this section, no sum shall be paid to any person—

• (a) on account of maternity grant in respect of a confinement occurring more than six months before the date on which the claim for the grant is made ;

• (b) on account of death grant in any case where the prescribed time for making a claim falls to be extended by virtue of the said proviso by more than six months ;

• (c) subject to paragraph 5(2) of Schedule 11 to this Act, on account of any other benefit in respect of any period more than six months before the date on which the claim for the benefit is made;

but regulations made by virtue of subsection (3)(a) of this section may vary or revoke the provisions of this subsection with respect to any benefit.

• (5) Subject to subsection (6) of this section, where it appears to the Minister that a question has arisen whether—

• (a) the conditions for the receipt of benefit payable under an award are or were fulfilled ; or

• (b) an award of benefit ought to be revised in accordance with Part IV of this Act,

he may direct that payment of the benefit shall be suspended in whole or in part until that question has been determined:

Provided that this subsection shall not apply in any case where the question has arisen as to whether the claimant has ceased to be entitled to receive unemployment benefit by reason of any of the provisions of section 22(2)(b) to (e) of this Act.

• (6) Regulations may provide that subsection (5) of this section shall cease to apply to any case, or to cases of any specified description, to which it would otherwise apply, or shall apply to cases of any specified description to which it would not otherwise apply.

Overlapping benefits, etc.

50

• (1) Without prejudice to paragraph 11 of Schedule 11 to this Act, regulations may provide—

• (a) for adjusting benefit payable to or in respect of any person, or the conditions for the receipt thereof, where—

• (i) any pension or allowance payable out of public funds (excluding an allowance under the Family Allowances Act, but including any other benefit under this Act whether of the same or a different description) is payable to or in respect of that person or that person's wife or husband ; or

• (ii) that person is undergoing medical or other treatment as an in-patient in a hospital or similar institution;

• (b) for suspending payment of benefit to a person during any period during which he is undergoing medical or other treatment as aforesaid.

• (2) Where but for regulations made by virtue of subsection (1)(a) of this section two persons would both be entitled to an increase of benefit in respect of a third person, regulations may make provision as to their priority.

Disqualifications, etc., to be disregarded for certain purposes.

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Regulations may provide that a person who would be entitled to any benefit but for the operation of section 49 or 50 of, or paragraph 11 of Schedule 11 to, this Act or of any provision of this Act disqualifying him for receipt of that benefit shall be treated as if entitled thereto for the purpose of any rights or obligations under this Part of this Act (whether of himself or any other person) which depend on his being so entitled, other than the right to payment of that benefit:

Administration of benefit.

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• (1) Provision may be made by regulations as to the time and manner of payment of benefit, and as to the information and evidence to be furnished by beneficiaries when applying for payment, and regulations made jointly by the Minister and the Postmaster General may provide for payment through the Post Office.

• (2) Regulations made under this section as to the time of payment of benefit may provide—

• (a) notwithstanding anything in this Act, for adjusting the commencement and termination of benefit, or of changes in the rate of benefit, so that, except in the case of unemployment benefit and sickness benefit, payments shall not be made in respect of periods less than a week or at different rates for different parts of a week;

• (b) for extinguishing the right to any sum payable by way of benefit where payment thereof is not obtained within six months or such shorter period as may be prescribed from the time at which that sum is receivable in accordance with the regulations.

• (3) Regulations may also provide—

• (a) for enabling a person to be appointed to exercise, on behalf of a claimant or beneficiary who is a child or who may be or become unable for the time being to act, any right or power which the claimant or beneficiary may be entitled to exercise under this Act, and for authorising a person so appointed to receive and deal with any sum payable by way of benefit on behalf of the claimant or beneficiary ;

• (b) in connection with the death of any person, for enabling a claim for benefit to be made or proceeded with in his name, for authorising payment or distribution of benefit to or amongst persons claiming as his personal representatives, legatees, next of kin or creditors (or, in cases of illegitimacy of deceased persons, to or amongst others) and for dispensing with strict proof of the title of persons so claiming.

• (4) Regulations under paragraph (b) of subsection (3) of this section may make provision with respect to claims for, and the payment of, death grant as if it were a benefit due to the deceased at his death and as if the references in that paragraph to creditors included a reference to any person who gives an undertaking in writing to pay the whole or part of the deceased's funeral expenses; and for the purposes of the said paragraph (b) the expression " next of kin" shall be construed as referring—

• (a) in England and Wales, to persons who would take beneficially on an intestacy under the provisions of Part IV of the Administration of Estates Act 1925 ;

• (b) in Scotland, to the persons entitled to the moveable estate of the deceased on intestacy.

Benefit to be inalienable.

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Subject to the provisions of this Act, every assignment of, or charge on, benefit, and every agreement to assign or charge benefit, shall be void, and, on the bankruptcy, or, in Scotland, on the sequestration of the estate, of a beneficiary, the benefit shall not pass to any trustee or other person acting on behalf of his creditors.

Supplementary.

Proceedings by employees for benefit lost by employer's default.

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• (1) Where an employer has failed or neglected—

• (a) to pay contributions which under this Act he is liable to pay on behalf of any employed person in his employment; or

• (b) to comply, in relation to any such person, with the requirements of any regulations relating to the payment and collection of contributions,

and by reason thereof that person has lost, in whole or in part, any unemployment benefit, sickness benefit, or maternity benefit to which he or she would have been entitled, that person shall be entitled to recover summarily from the employer as a civil debt a sum equal to the amount of the benefit so lost.

• (2) Where the employed person is a man, his wife or widow shall have the same right to recover under the foregoing subsection in respect of maternity benefit lost by her as if the employer's failure or neglect had been in respect of her.

• (3) Proceedings may be taken under this section notwithstanding that proceedings have been taken under any other provision of this Act in respect of the same failure or neglect.

• (4) Proceedings under this section may, notwithstanding any enactment to the contrary, be brought at any time within one year after the date on which the employed person or his wife or widow, but for the failure or neglect of the employer, would have been entitled to receive the benefit lost.

• (5) In the application of subsection (1) of this section to Scotland, the word " summarily " shall be omitted.

Provisions as to maintenance.

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• (1) Regulations may provide for determining the circumstances in which a person is or is not to be deemed for the purposes of this Part of this Act to be wholly or mainly maintaining, or to be contributing at any weekly rate to the maintenance of, another person or to be or have been contributing at any weekly rate to the cost of providing for a child.

• (2) Regulations under the foregoing subsection may provide, for the purpose of the provisions relating to an increase of benefit in respect of a wife or other adult dependant, that where—

• (a) a person is partly maintained by each of two or more beneficiaries, each of whom would be entitled to such an increase in respect of that person if he were wholly or mainly maintaining that person ; and

• (b) the contributions made by those two or more beneficiaries towards the maintenance of the person amount in the aggregate to sums which would, if they had been contributed by one of those beneficiaries, be sufficient to satisfy the requirements of regulations made by virtue of subsection (1) of this section,

that person shall be deemed for the purpose of the said provisions to be wholly or mainly maintained by such of those beneficiaries as may be prescribed.

• (3) Regulations may provide for any sum or sums paid by a person by way of contribution towards either or both of the following, that is to say, the maintenance of his wife and the cost of providing for one or more children, to be treated for the purposes of section 38(c), 41(3), 42(1)(b) or 43(1)(a)(ii) of this Act as such contributions, of such respective amounts equal in the aggregate to the said sum or sums, in respect of such persons, as may be determined in accordance with the regulations so as to secure as large a payment as possible by way of benefit in respect of dependants.

Part III — Non-participating Employments

Determination of nature of employment.

Non-participating employments.

56

Equivalent pension benefits, etc.

57

• (1) For the purposes of this Part of this Act, but subject to section 63(2) thereof and paragraph 14 of Schedule 11 thereto, equivalent pension benefits, in relation to any period of service in an employment, comprise, and comprise only, retirement benefits by way of pension as respects which the following conditions are satisfied, that is to say—

• (a) the benefits consist of or include a pension which (subject to any condition as to retirement) commences not later than pensionable age, and there is no condition postponing beyond pensionable age the age at which retirement on pension is allowed; and

• (b) there is no provision for the surrender, commutation or assignment of the pension or, if there is, some part of the pension is excluded from the operation of it; and

• (c) the pension or the said part of it is payable for life, and is not capable of being terminated or suspended except for such causes, if any, as may be prescribed; and

• (d) apart from any period before pensionable age, the pension or the said part of it is of an amount not less, when expressed as an annual rate, than, in the case of a man, three pounds nine shillings and sevenpence a year, and, in the case of a woman, two pounds eighteen shillings a year, for each year of the period of service.

• (2) Where service in an employment contingently qualifies a person employed in it for retirement benefits by way of pension, then, in determining whether the employment can be treated as a non-participating employment in relation to the persons from time to time so employed or any of them, a person's service shall be treated as qualifying him for such pension benefits, as, in the existing circumstances, can reasonably be expected to accrue to him from a period of service of appropriate length, on the assumption that he remains in an employment qualifying him for those benefits until pensionable age (or as near to that age as the terms of the employment allow) but no longer.

• (3) In determining whether an employment can be treated as a non-participating employment in a case where a limit on the maximum amount of the benefits payable or any description of them operates to prevent service beyond a given length from qualifying a person for further benefits, the qualification arising from any period of service shall be determined on the assumption that the total service does not exceed that length.

• (4) Any scheme or arrangement having for its object or one of its objects to make provision in respect of persons serving in particular employments for providing them with retirement benefits by way of pension shall be a recognised superannuation scheme for the purposes of this Part of this Act—

• (a) if it is established by Act of Parliament or of the Parliament of Northern Ireland, or other instrument having the force of law ; or

• (b) if the benefits for which service in those employments qualifies a person, or such part of them as has to be taken into account to constitute them equivalent pension benefits, are secured by irrevocable trust, contract of assurance or annuity contract satisfying such conditions as may be prescribed, or in such other manner as may be prescribed, and the provision made to enable benefits to be paid (taking into account any additional resources which could and would be provided by the employer, or any person connected with the employer, to meet any deficiency) is adequate to ensure payment in full of the benefits or part aforesaid.

• (5) Where the date for a person's retirement on pension under a superannuation scheme is fixed by reference to his attaining pensionable age and so as to fall not later than six months after he does so, but does not depend solely on age, this section shall apply in relation to his benefits under that scheme as if he did not attain pensionable age before that date.

Payments in lieu of contributions.

Payments in lieu of contributions in certain circumstances.

58

Subject to paragraphs 15 and 16 of Schedule 11 to this Act, where an insured person's period of service in a non-participating employment comes to an end otherwise than by his death, and at the end of it he is not assured of equivalent pension benefits in respect of it, then subject to the provisions of this Act there shall be due to the National Insurance Fund from his employer in that employment a payment in lieu of contributions equal to the difference between—

• (a) the aggregate amount of the contributions which would have been payable by or in respect of the insured person during that period if on the first day of each contribution week beginning in that period there had been payable by and in respect of him contributions (other than graduated contributions) at the rates applicable on that day to persons employed otherwise than in a non-participating employment and also graduated contributions in respect of a weekly payment of remuneration of eighteen pounds made on that day ; and

• (b) the aggregate amount of the contributions which would have been payable by or in respect of him for that period if for each such contribution week contributions had been payable at the rates applicable to non-participating employments;

and on the making of any payment required by this subsection the insured person shall be treated for the purposes of this Act as having paid such graduated contributions payable by him as are referred to in paragraph (a) of this subsection or, if the payment is less than the full amount required, a proportionate part of such contributions.

Further provisions as to payments in lieu of contributions.

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• (1) Except as provided by this section, section 58 of this Act shall apply whether a person's period of service in a non-participating employment comes to an end by reason of the termination of his service in that employment or by reason of the employment ceasing to be a non-participating employment, and, subject to any regulations under section 63(1) of this Act, where that period is brought to an end by an employer's death, shall apply as if it had come to an end immediately before the death.

• (2) For the purposes of the said section 58, if an employment becomes or ceases to be a non-participating employment in the course of a person's service in it, his service before and after the time when it does so shall be treated as service in different employments.

• (3) For the purposes of the said section 58, a person having at the end of his service in a non-participating employment equivalent pension benefits in respect of it shall be deemed to be assured of those benefits if, and shall be deemed not to be assured of them unless, either—

• (a) he is absolutely and indefeasibly entitled to them, and the manner in which they are secured and the provision made for their payment are such as may be prescribed ; or

• (b) such other conditions as may be prescribed are satisfied ;

and regulations may provide for treating as having effect from the end of a person's service in a non-participating employment any option exercised or other thing done within the prescribed period thereafter in relation to his retirement benefits in respect of it.

• (4) Where—

• (a) a payment in lieu of contributions would, but for this subsection, fall to be made in respect of a person on the coming to an end of his service in a non-participating employment; and

• (b) on the coming to an end of that service, or within the prescribed period thereafter, he enters another non-participating employment; and

• (c) his service in the previous employment is service qualifying him for equivalent pension benefits under the recognised superannuation scheme relating to his new employment (on the like assumptions as are to be made under section 57(2) and (3) of this Act in relation to his service in the new employment); and

• (d) if the scheme is a recognised superannuation scheme by virtue of paragraph (b) of section 57(4) of this Act, the conditions of that paragraph are satisfied in relation to the said benefits,

then for the purpose of any liability to make a payment in lieu of contributions in respect of him the two employments shall be treated as a single continuous employment (any interval being disregarded):

Provided that—

• (i) this subsection shall not apply unless either both employments are under the same employer or such other conditions as may be prescribed are satisfied; and

• (ii) regulations may direct that paragraph (c) of this subsection shall not apply in any prescribed cases in which provision is made by the recognised superannuation scheme relating to the new employment for taking into account in any manner the service in the previous employment.

• (5) Provision may be made by regulations for excluding or restricting the liability to make payments in lieu of contributions in cases where a person serves at the same time in more than one employment, and for modifying the operation of any provision of this Act in relation to any such payment of which the amount is reduced by virtue of this subsection; and regulations may also modify the operation of subsection (4) of this section in cases where a person serves as aforesaid or would, apart from the regulations, be treated by virtue of that subsection as so serving.

• (6) Where an insured person's period of service in a non-participating employment comes to an end otherwise than by his death, and at the end of it he is over pensionable age, then for the purpose of any liability to make a payment in lieu of contributions in respect of that service he shall be deemed to be assured at the end of it (in lieu of any pension benefits he then has) of the same pension benefits, save as provided by regulations under subsection (3) of this section, as those of which he would have been assured on the coming to an end of the service on his attaining pensionable age by his then retiring from the employment; and any question whether those benefits are equivalent pension benefits, and any question as to the amount of, or as to the graduated contributions attributable to, any payment in lieu of contributions, shall be determined as if the service had come to an end by his so retiring:

Provided that where the date for his retirement on pension under the recognised superannuation scheme relating to the employment is fixed by reference to his attaining that age and so as to fall not later than six months after he does so, but does not depend solely on age, this subsection shall apply as if he did not attain that age before that date.

• (7) A payment in lieu of contributions shall become due at such time as may be prescribed after the end of the period of service to which it relates ; and if any person fails to make at or within the time prescribed for the purpose any such payment for which he is liable, he shall be liable to be proceeded against and punished under section 8(2) of this Act as for a failure so to make payment of a contribution.

• (8) Section 14(1) of this Act shall apply to payments in lieu of contributions as it applies to contributions, and for the purposes of paragraph (c) of the said section 14(1) any such payment shall be deemed to be payable by an employer on behalf of the insured person in respect of whom it is payable.

Employer's rights against insured person in respect of payment in lieu of contributions.

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• (1) Where on the coming to an end of an insured person's service in a non-participating employment—

• (a) he (or, by virtue of a connection with him, any other person) is entitled to a refund of any payments made under the recognised superannuation scheme by or in respect of him towards the provision of benefits under the scheme; and

• (b) a payment in lieu of contributions falls to be made in respect of him under this Act,

then, subject to the provisions of this section, the person liable for the payment in lieu of contributions shall be entitled on making that payment or any part of it to recover one half of the sum paid by him from the person liable for the refund :

Provided that the amount recoverable shall not exceed the amount of the refund, or so much of it as has not been made.

• (2) Where the period taken into account in fixing the amount of a payment does not coincide with that in respect of which the refund is to be made, then (subject to subsection (3) of this section) the amount recoverable under this section shall be determined by reference to so much of the payment and of the refund as are referable to the same period.

• (3) The amount which may be recovered under this section in respect of any payment in lieu of contributions shall be increased by such amount as may be prescribed where—

• (a) under section 59(4) of this Act the insured person's service in any previous employment is treated in fixing the payment in lieu of contributions as service in the employment in respect of which the refund is made; and

• (b) the refund includes any amount in respect of a payment made by or in respect of the insured person towards the provision for him of benefits under the scheme in respect of service in the previous employment.

• (4) Where the person liable for the payment in lieu of contributions is himself liable for the refund, he shall be entitled to retain out of the refund the amount which he could recover under this section from another person who was liable for the refund.

• (5) The amount of the refund shall be reduced by any amount recovered or retained under this section; and provision shall be made by regulations for requiring the making of refunds to be delayed for the purpose of enabling any right of recovery conferred by this section to be exercised, and shall have effect notwithstanding anything in any enactment relating to the making of the refund.

• (6) Where on the coming to an end of an insured person's service in a non-participating employment—

• (a) he (or, by virtue of a connection with him, any other person) is entitled to a refund of any payments made by or in respect of him under the recognised superannuation scheme relating to a previous employment towards the provision of benefits under that scheme; and

• (b) a payment in lieu of contributions falls to be made in respect of him, and under the said section 59(4) his service in the two employments is treated as service in one employment in fixing that payment,

then in respect of that payment the person liable for it shall have the like right of recovery from that refund (so far as the payment is not recoverable out of a refund in respect of a later employment) as a person has under the foregoing provisions of this section where a payment in lieu of contributions and a refund fall to be made on the coming to an end of service in the employment in respect of which the refund is to be made; and subsection (5) of this section shall apply accordingly.

• (7) Notwithstanding any contract to the contrary, a person shall not be entitled to recover any part of a payment in lieu of contributions made or to be made by him from the person in respect of whom it is payable or, except in accordance with this section, out of any moneys payable to or for the benefit of that person.

Recovery of payments in lieu of contributions in event of bankruptcy, etc.

61

• (1) There shall be included among the debts which—

• (a) under section 33 of the Bankruptcy Act 1914 are to be paid in priority to all other debts in the distribution of the property of a bankrupt or a deceased debtor; or

• (b) under section 118 of the Bankruptcy (Scotland) Act 1913 are to be paid in priority to all other debts in the division of a bankrupt's estate; or

• (c) under section 319 of the Companies Act 1948 are to be paid in priority to all other debts in the winding-up of a company, or under section 94 of that Act are on an appointment of a receiver on behalf of debenture holders or taking of possession by or on behalf of debenture holders to be paid in priority to any claim for principal or interest in respect of the debentures,

any payment in lieu of contributions payable on the termination of a person's employment before or by the effect of the receiving order or death, the award of sequestration, the winding-up order or resolution, or the appointment of the receiver or taking of possession, as the case may be:

Provided that, where any such payment is payable in respect of a period of service of more than a year, the amount to be so paid in priority shall be limited to the amount of the payment in lieu of contributions which would have been payable if the service had been confined to the last year taken into account in fixing the actual amount of the payment.

• (2) Where—

• (a) by or by virtue of the foregoing subsection the whole or part of a payment in lieu of contributions is required to be paid in priority to other debts of the employer or his estate; and

• (b) the person liable for that payment would be entitled to recover the whole or part of any sum paid by him on account of it from another person either under section 60 of this Act or under any provision made by the relevant superannuation scheme,

then that other person shall be liable for any part of the payment in lieu of contributions for the time being unpaid:

Provided that no person shall be liable by virtue of this subsection for an amount in excess of the sum which might be recovered from him as aforesaid if the payment in lieu of contributions had been paid in full by the employer, after deducting from that sum any. amount which has been or may be recovered from him in respect of any part of that payment paid otherwise than under this subsection.

• (3) The payment under subsection (2) of this section of any amount in respect of a payment in lieu of contributions shall have the same effect upon the rights and liabilities of the person making it (other than his liabilities under that subsection) as if it had been a payment of that amount on account of the sum recoverable from him in respect of that payment in lieu of contributions as mentioned in paragraph (b) of that subsection.

Statutory superannuation schemes.

Special provisions for certain statutory superannuation schemes.

62

• (1) In relation to employments of any class to which this section applies, the appropriate Minister may by regulations direct that elections with a view to the issue, variation, cancellation or surrender of certificates under this Part of this Act shall be made and revoked by him instead of by the employer.

• (2) Any such regulations may also make provision for other things which by or under this Part of this Act are required or authorised to be done by or to the employer to be done instead by or to the appropriate Minister, for treating employments of the class in question as employments under a single employer different from the employer in any other employment, and for the recovery from the employer of payments in lieu of contributions made by the appropriate Minister instead of by the employer.

• (3) Before making any regulations under this section the appropriate Minister shall consult with such bodies concerned with employments of the class in question as appear to him fairly to represent the interests of employers and employed persons in those employments.

• (4) Subject to subsections (5) and (6) of this section, the employments in which a person's service qualifies him for retirement benefits by way of pension under the enactments specified in any entry in Schedule 5 to this Act shall constitute a class to which this section applies, and in relation to that class the appropriate Minister shall be the Minister mentioned in the second column in that entry.

• (5) Where service in any employment would qualify a person as aforesaid under the enactments specified in any such entry but for rules having effect under section 2 of the Superannuation (Miscellaneous Provisions) Act 1948 (which relates to persons transferring to or from certain employments), the employment shall be treated as falling within the class to which that entry relates, and as not falling within any other class to which this section applies.

• (6) Where a local Act contains a provision for the payment of retirement benefits by way of pension for service which, but for the provision, would qualify a person for such benefits under the enactments specified in any entry in Schedule 5 to this Act, that provision shall be deemed to be included among the enactments specified in that entry.

Additional powers to make regulations.

Regulations for purposes of Part III.

63

• (1) Provision may for the purposes of this Part of this Act be made by regulations—

• (a) for treating a person's employment, where it begins or ends in the course of a contribution week or of an income tax week, as doing so at the beginning or end of the week;

• (b) for disregarding changes in a person's employment due to the death of an employer or other causes, and for treating employment under the new employer as a continuation of that under the former employer, and treating any certificate issued to or election made by the former employer as issued to or made by the new employer;

• (c) for disregarding temporary interruptions in a person's employment, and for treating the employment as continuing during the interruption;

• (d) generally as to the circumstances in which a person's employment is or is not to be treated as having come to an end.

• (2) Regulations may, in order to facilitate the computations needed to ascertain equivalent pension benefits for the purposes of section 58 or any other provision of this Act, convert the formula in section 57(1)(d) of this Act, as respects service before or service after 5th January 1964, or as respects both kinds of service, into a formula expressed in terms—

• (a) of a minimum annual rate of pension for a period of service expressed in terms of weeks, or

• (b) of a minimum rate of pension, as a rate for a week or month or other period shorter than a year, for a period of service expressed in terms of weeks,

adjusting the figures so as to admit of tabulation and so as to avoid fractional amounts or otherwise facilitate computation, and making special provision for a period of service which does not amount to a whole number of weeks and for a week of service which includes 5th January 1964.

Part IV — Determination of Claims and Questions

Determination of certain questions by Minister.

Certain questions to be determined by Minister.

64

Appeals from Minister's decisions.

65

• (1) Any question of law arising in connection with the determination by the Minister of any question such as is mentioned in section 64(1)(a) to (c) of this Act may, if the Minister thinks fit, be referred for decision to the High Court.

• (2) In the event of the Minister determining in accordance with subsection (1) of this section to refer any question of law to the High Court, he shall send notice in writing of his intention so to do to the applicant and to any other person appearing to him to be interested therein.

• (3) Any person aggrieved by the decision of the Minister on any question of law such as is mentioned in subsection (1) of this section which is not referred in accordance with that subsection may appeal from that decision to the High Court.

• (4) The Minister shall be entitled to appear and be heard on any such reference or appeal as aforesaid.

• (5) The provision made by rules of court shall include provision for regulating references and appeals to the High Court under this section and for limiting the time within which such appeals may be brought.

• (6) So much of section 63(1) of the Supreme Court of Judicature (Consolidation) Act 1925 as requires an appeal from any person to the High Court to be heard and determined by a divisional court shall not apply to appeals under this section.

• (7) Notwithstanding anything in any Act, the decision of the High Court on a reference or appeal under this section shall be final, and on any such reference or appeal the court may order the Minister to pay the costs of any other person, whether or not the decision is in that other person's favour and whether or not the Minister appears on the reference or appeal.

• (8) In the application of this section to Scotland—

• (a) for any reference to the High Court there shall be substituted a reference to the Court of Session ;

• (b) subsection (6) shall be omitted;

• (c) for the reference in subsection (7) to costs there shall be substituted a reference to expenses.

Review of Minister's decisions.

66

• (1) The Minister may, on new facts being brought to his notice, or if he is satisfied that the decision was given in ignorance of, or was based on a mistake as to, some material fact, review any decision given by him on any question such as is mentioned in section 64(1)(a) to (c) of this Act:

Provided that any such decision shall not be reviewed while an appeal under section 65 of this Act is pending against the decision of the Minister on a question of law arising in connection therewith, or before the time for so appealing has expired ; and the said section 65 shall apply with any necessary modifications to any case in which a question has been raised with a view to the review under this subsection of any such decision as aforesaid.

• (2) The Minister may at any time and from time to time reconsider the exercise of his discretion with respect to any question such as is mentioned in section 64(1)(d) of this Act and decide that question again with such other effect as may seem to him to be proper in the circumstances of the case.

Determination of certain matters by insurance officers, local tribunals or Commissioner.

Certain questions to be determined by insurance officers, local tribunal or Commissioner.

67

• (1) Subject to the provisions of this Act, any question arising under this Act—

• (a) as to the right to benefit; or

• (b) whether a person would by reason of the provisions of, or of any regulations made under, section 22(2) or (3) of this Act have been disqualified for receiving either unemployment benefit or sickness benefit if he had otherwise had a right thereto,

shall be determined in accordance with the provisions of sections 68 to 72 of this Act by an insurance officer, a local tribunal constituted under section 77 of this Act or the National Insurance Commissioner.

• (2) Subsection (1)(a) of this section shall not apply to any question to which section 64(1) or 74(1) of this Act applies.

Submission of claims and questions to insurance officers.

68

• (1) Insurance officers for the purposes of this Act shall be appointed by the Minister, subject to the consent of the Treasury as to number, to act for such areas or otherwise as the Minister directs, and may include officers of the Ministry of Labour appointed with the concurrence of the Minister of Labour and officers of the National Assistance Board appointed with the concurrence of that Board.

• (2) Any claim for benefit under this Act and any question to which section 67(1) of this Act applies shall be submitted forthwith to an insurance officer, who shall take the claim or question into consideration and, so far as practicable, dispose of it in accordance with this section and any regulations under section 75(2) of this Act within fourteen days of its submission to him.

• (3) Subject to section 71 of this Act, the insurance officer may in the case of any claim or question so submitted to him—

• (a) decide it in favour of the claimant; or

• (b) decide it adversely to the claimant; or

• (c) refer it to a local tribunal.

• (4) Where an insurance officer refers a case to a local tribunal in accordance with subsection (3)(c) of this section, notice in writing of the reference shall be given to the claimant.

• (5) Different aspects of the same claim or question may be submitted to different insurance officers under the foregoing provisions of this section, and for that purpose those provisions and the other provisions of this Part of this Act with respect to the determination of claims and questions shall have effect subject to any necessary modifications.

Appeals from insurance officer to local tribunal.

69

• (1) Where the insurance officer has decided any claim or question adversely to the claimant, the claimant may appeal to a local tribunal, and the claimant shall be notified in writing of the decision and the reasons therefor and of his right of appeal under this section:

Provided that where any question to which section 64(1) of this Act applies has arisen in connection with the decision of the insurance officer, and has been determined, and the insurance officer certifies that the decision on that question is the sole ground of his decision, no appeal shall lie without leave of the chairman of the local tribunal.

• (2) An appeal against a decision of an insurance officer shall be brought by giving notice of appeal at a local office within twenty-one days after the date of that decision or within such further time as the chairman of the local tribunal may for good cause allow.

• (3) A notice of appeal under this section shall be in writing and shall contain a statement of the grounds upon which the appeal is made.

• (4) In this and the next following section, the expression "local office" means any office appointed by the Minister as a local office for the purposes of this Act.

Appeals from local tribunal to National Insurance Commissioner.

70

• (1) Subject to the provisions of this section, an appeal shall lie to the National Insurance Commissioner from any decision of a local tribunal at the instance of—

• (a) an insurance officer;

• (b) the claimant;

• (c) an association of employed persons, or any other association which exists to promote the interests and welfare of its members, where in either case—

• (i) the claimant at the time of the appeal is a member of the association and was so immediately before the question at issue arose; or

• (ii) the question at issue relates to the right to benefit by virtue of the insurance of a deceased person, and that person was a member of the association at the time of his death.

• (2) An appeal to the Commissioner must be brought within three months from the date of the decision of the local tribunal, or such further period as the Commissioner may in any case for special reasons allow, and such an appeal shall be brought by giving notice in writing in a form approved by the Minister stating the grounds of the appeal—

• (a) in the case of an appeal by an insurance officer, to the claimant; and

• (b) in the case of an appeal by the claimant or an association such as is mentioned in subsection (1)(c) of this section, at a local office.

• (3) If it appears to the Commissioner that any appeal under this section involves a question of law of special difficulty, he may direct that the appeal shall be dealt with, not by the Commissioner alone, but by a tribunal consisting of any three of the Commissioner and the deputy Commissioners appointed under section 78 of this Act; and if the decision of any such tribunal is not unanimous, the decision of the majority shall be the decision of the tribunal.

• (4) If it appears to the Commissioner that any appeal under this section involves a question of fact of special difficulty, the Commissioner may direct that in dealing with the appeal or any part thereof he shall have the assistance of an assessor or assessors specially qualified and selected from a panel appointed for that purpose.

• (5) The Commissioner may, if he thinks fit, refer any question arising for his decision to a registered medical practitioner for examination and report.

Reference of special questions.

71

• (1) If on consideration of any claim or question an insurance officer is of opinion that there arises any question to which section 64(1) of this Act applies, he shall—

• (a) refer the latter question for determination in accordance (subject to any necessary modifications) with sections 64 to 66 of this Act; and

• (b) deal with any other questions as if the question so referred had not arisen:

Provided that the insurance officer may—

• (i) postpone the reference of or dealing with any question until other questions have been determined;

• (ii) in cases where the determination of any question disposes of a claim or any part thereof, make an award, or decide that an award cannot be made, as to the claim or that part thereof without referring or dealing with, or before the determination of, any other question.

• (2) Subsection (1) of this section shall apply to a local tribunal and the Commissioner as it applies to an insurance officer, except that a local tribunal or the Commissioner, instead of themselves or himself referring a question in accordance with subsection (1)(a) of this section, shall direct it to be so referred by an insurance officer.

Review of decisions of insurance officer, local tribunal or Commissioner.

72

• (1) Any decision under sections 67 to 70 of this Act of an insurance officer, a local tribunal or the National Insurance Commissioner may be reviewed at any time by an insurance officer or, on a reference from an insurance officer, by a local tribunal, if—

• (a) he or they is or are satisfied, and, in the case of a decision of the Commissioner, satisfied by fresh evidence, that the decision was given in ignorance of, or was based on a mistake as to, some material fact; or

• (b) there has been any relevant change of circumstances since the decision was given; or

• (c) the decision was based on the decision of any question to which section 64(1) of this Act applies, and the decision of that question is revised in accordance with the provisions of section 66 of this Act.

• (2) A question may be raised with a view to such a review as aforesaid by means of an application in writing to an insurance officer, stating the grounds of the application.

• (3) On receipt of any such application, the insurance officer shall proceed to deal with or refer any question arising thereon in accordance with the provisions of the said sections 67 to 70.

• (4) Any decision given on a review under this section, and any refusal to review a decision under this section, shall be subject to appeal in like manner as an original decision, and the provisions of the said sections 67 to 70 shall, subject to the necessary modifications, apply in relation to any decision given on such a review as they apply to the original decision of a question.

Regulations as to determination of questions.

Regulations for determination of questions.

73

• (1) Notwithstanding the provisions of sections 64 to 72 but subject to any other provision of this Act, in the case of any question arising under or in connection with this Act, including any claim for benefit, other than a question such as is mentioned in section 64(1)(d) of this Act, provision may be made by regulations for the determination of that question by the Minister or by a person or tribunal appointed or constituted in accordance with the regulations; and any such regulations may vary or revoke the provisions of sections 64, 65(1) to (4), 66 to 72 and 77 of this Act so far as they relate to any question to which the regulations relate.

• (2) As respects any question as to the right to benefit other than such a question as is mentioned in section 64(1) or 74(1) of this Act and other than a question as to entitlement to a death grant, regulations under subsection (1) of this section shall not provide for the determination of that question by the Minister but, subject to subsection (3) of this section, shall provide—

• (a) for the submission of the question in the first instance to an officer appointed by the Minister;

• (b) for authorising the said officer either himself to determine the question or to refer it to a local tribunal, and for enabling an appeal to be brought from the officer's decision to such a tribunal;

• (c) for enabling an appeal to be brought from such a tribunal to, or to a tribunal presided over by, the National Insurance Commissioner or a deputy Commissioner appointed under section 78 of this Act.

• (3) Regulations made by virtue of subsection (2) of this section may provide for the submission of different aspects of the same question to different officers; and for that purpose paragraphs (a) and (b) of that subsection shall have effect subject to the necessary modifications.

• (4) Regulations under subsection (1) of this section may provide for the reference to the High Court for decision of any question of law arising in connection with the determination of a question by the Minister, and for appeals to the High Court from the decision of the Minister on any such question of law; and subsections (5) to (8) of section 65 of this Act shall apply to any reference or appeal under this subsection as they apply to any reference or appeal under subsections (1) to (3) of that section.

• (5) In the application of subsection (4) of this section to Scotland, for references to the High Court there shall be substituted references to the Court of Session.

Determination of questions under Part III.

74

• (1) Regulations under section 73(1) of this Act shall provide—

• (a) for the determination by an officer appointed by the Minister (hereafter in this section referred to as " the registrar ") of any question whether an employment is to be treated as a non-participating employment, or as to the persons in relation to whom or the period for which it is to be so treated, and for the issue, variation and cancellation by the registrar of the certificates under section 56 of this Act specifying the employments which are to be so treated ;

• (b) for enabling any such question, instead of being determined as aforesaid, to be referred to an adjudicator (being a barrister or advocate of not less than ten years' standing) appointed for the purposes of Part III of this Act, and for enabling appeals to be brought to such an adjudicator from decisions of the registrar;

• (c) for enabling the functions of the registrar to be exercised by officers appointed to act as his deputies by the Minister, and for enabling an adjudicator to have the assistance of one or more assessors in dealing with a case.

• (2) Regulations may also make provision for any incidental matters connected with the operation of the provisions of this Act relating to non-participating employments, including the information which may be required from any person, and in particular shall provide—

• (a) for enabling the registrar to cancel or vary any such certificate as aforesaid where he has reason to suppose that any employments to which it relates ought not to be treated as non-participating employments in accordance with the certificate and the employer does not show that they ought;

• (b) for regulating the manner in which employers are to make or revoke an election with a view to the issue, variation, cancellation or surrender of such a certificate, and requiring them to give notice for the purpose of informing employed persons and others of their intention to do so;

• (c) for enabling the registrar to defer the issue or variation of such a certificate so as to enable the relevant election to be further considered in the light of any representations made by persons to whom notice of the election is required by regulations to be given or by organisations representing any such persons ;

• (d) for requiring employers (except in such cases as may be prescribed) to give notice to the Minister when a person's period of service in a non-participating employment begins or comes to an end.

• (3) Any appointment for the purposes of Part III of this Act of an adjudicator, as required by subsection (1) of this section, shall be made by the Lord Chancellor, after consultation, if the person appointed is an advocate, with the Lord President of the Court of Session.

Supplementary provisions as to determination of claims and questions.

Supplementary provisions.

75

• (1) Subject to the provisions of sections 64 to 72 of this Act, the decision of any claim or question in accordance with those provisions, and, subject to the provisions of any regulations under section 73 of this Act, the decision of any claim or question in accordance with the provisions of those regulations, shall be final.

• (2) Subject to the other provisions of this Part of this Act, regulations may, in relation to the determination of claims or questions in accordance with sections 64 to 72 or with regulations under section 73 of this Act, include provision—

• (a) as to the procedure which is to be followed, the form which is to be used for any document, the evidence which is to be required and the circumstances in which any official record or certificate is to be sufficient or conclusive evidence;

• (b) as to the time to be allowed for making any claim or appeal, for raising any question with a view to the review of any decision or for producing any evidence;

• (c) for summoning persons to attend and give evidence or produce documents and for authorising the administration of oaths to witnesses;

and except so far as it may be applied in relation to England and Wales by regulations made by virtue of this subsection the Arbitration Act 1950 shall not apply to any proceedings under sections 64 to 74 of this Act.

• (3) It is hereby declared that the power to prescribe procedure includes power to make provision as to the representation of one person, at any hearing of a case, by another person whether having professional qualifications or not.

Determination of certain questions as to child or family.

76

• (1) Where any question such as is mentioned in subsection (3) of this section arises with respect to benefit under this Act (other than such a question as is mentioned in section 64(1)(d) thereof), that question shall be determined in accordance with the provisions of sections 67 to 73 of this Act in like manner, subject to any prescribed modifications and adaptations, as a corresponding question arising in respect of an allowance under the Family Allowances Act falls to be determined by virtue of section 5(2) of that Act.

• (2) Any decision of any question such as is mentioned in subsection (3)(a) to (c) of this section given under this Part of this Act, whether given for the purposes of this Act, the Industrial Injuries Act or the Family Allowances Act, shall have effect also for the purposes of the others of those Acts.

• (3) The questions referred to in subsections (1) and (2) of this section are questions—

• (a) whether any person is or was a child or is or was under school leaving age ;

• (b) whether any person has or had a family including a child or children, or is or was a child of some other person's family (but not whether a person is to be treated for the purpose of any provision of this Act as having a family including a child or children or as being a child of some other person's family);

• (c) whether any person could have been treated under paragraph 3 of the Schedule to the Family Allowances Act as, or but for certain facts would have been, or could have been treated as aforesaid as, a child of any other person's family ;

• (d) whether, for the purposes of the payment to a beneficiary of any benefit under this Act in respect of a child, the child in question is living with the beneficiary.

Provisions as to local tribunals, Commissioner, etc.

Constitution of local tribunals.

77

• (1) A local tribunal for the purposes of sections 67 to 72 of this Act shall consist of—

• (a) one member drawn from a panel composed of persons representing employers and persons representing insured persons other than employed persons;

• (b) one member drawn from a panel of persons representing employed persons;

• (c) a person appointed by the Minister to act as chairman.

• (2) The panels referred to in subsection (1) of this section shall be constituted by the Minister for the whole of Great Britain, and each panel shall relate to such area as the Minister thinks fit, and be composed of such persons as the Minister sees fit to appoint.

• (3) Before appointing members to either of the panels, the Minister may take into consideration any recommendation from a local advisory committee constituted under section 89 of this Act or from any other local committee representing employers or insured persons or both, or from organisations concerned with the interests of employers or insured persons, including friendly societies or organisations representative of friendly societies.

• (4) The members of the panels shall hold office for such period as the Minister may direct:

Provided that the Minister may at any time terminate the appointment of any member of a panel.

• (5) So far as practicable, each member of a panel shall be summoned to serve in turn upon a local tribunal:

Provided that—

• (a) no member of a panel shall sit upon a local tribunal during the consideration of a case—

• (i) in which he appears as the representative of the claimant; or

• (ii) by which he is or may be directly affected ; or

• (iii) in which he has taken any part as an official of an association, or as an employer, or as a witness, or as a person to whom any question arising thereon has been referred for examination and report in accordance with section 64(3) or with regulations under section 73(1) of this Act or otherwise;

• (b) where the benefit claimed is unemployment benefit, the member chosen from the first panel shall, if practicable, be a representative of employers; and

• (c) in any case in which the claimant is a woman, at least one of the members of the tribunal, if practicable, shall be a woman.

• (6) Any case may, with the consent of the claimant but not otherwise, be proceeded with in the absence of any member of the local tribunal other than the chairman, and in any such case the tribunal shall be deemed to be properly constituted and the chairman shall, if the number of the members of the tribunal is an even number, have a second or casting vote.

• (7) A person appointed to act as chairman of a local tribunal shall hold and vacate office in accordance with the terms of his letter of appointment.

• (8) Where several persons are appointed to act as chairmen for a particular area they shall as far as practicable be invited to preside over a tribunal in turn:

Provided that this subsection shall not apply to a person expressly appointed to serve as a substitute when some other person may be unwilling or unable to act.

National Insurance Commissioner and deputy Commissioners.

78

• (1) The National Insurance Commissioner shall be appointed by Her Majesty, and Her Majesty may appoint for the purposes of this Act such number of deputy Commissioners as Her Majesty thinks fit.

• (2) The Commissioner and deputy Commissioners shall be barristers or advocates of not less than ten years' standing.

• (3) Unless the context otherwise requires, any reference in this Act to the National Insurance Commissioner shall include a reference to a deputy Commissioner and to any tribunal constituted under section 70(3) of this Act.

Pension benefits of Commissioner and deputy Commissioners.

79

• (1) Without prejudice to the pension benefits conferred by the Administration of Justice (Pensions) Act 1950, the Minister may from time to time recommend to the Treasury that there shall be paid out of moneys provided by Parliament to the National Insurance Commissioner or any deputy Commissioner appointed under section 78 of this Act an annual sum by way of superannuation allowance calculated in accordance with Schedule 6 to this Act if either—

• (a) he is at the time of his retirement over the age of seventy two or, where he retires after fifteen years' service, the age of sixty-five ; or

• (b) the Minister is satisfied by means of a medical certificate that at the time of his retirement he is, by reason of infirmity of mind or body, incapable of discharging the duties of his office and that the incapacity is likely to be permanent.

• (2) For the purposes of the foregoing subsection and the said Schedule 6—

• (a) service as National Insurance Commissioner or deputy Commissioner which is not remunerated by means of a salary shall be disregarded;

• (b) service as deputy Commissioner shall, subject to the foregoing paragraph, count (in the case of a person retiring as National Insurance Commissioner) as service as National Insurance Commissioner;

• (c) the Treasury may by regulations provide for counting as service as National Insurance Commissioner or as deputy Commissioner pensionable service in any other capacity under the Crown.

• (3) The decision of the Treasury shall be final on any question arising as to—

• (a) the amount of any superannuation allowance under this section; or

• (b) the reckoning of any service for the purpose of calculating such an allowance.

• (4) Where the rate of the superannuation allowance payable to any person under subsection (1) of this section as National Insurance Commissioner or deputy Commissioner is or would be increased by virtue of regulations made under subsection (2)(c) of this section in respect of service in some other capacity, and a pension payable to him wholly in respect of service in that other capacity would have been paid and borne otherwise than out of moneys provided by Parliament, any pension benefits paid to or in respect of him as having been Commissioner or deputy Commissioner shall, to such extent as the Treasury may determine, having regard to the relative length of service and rate of remuneration in each capacity, be paid and borne in like manner as that in which a pension payable to him wholly in respect of service in that other capacity would have been paid and borne.

• (5) In this section, the expression " pension" includes any superannuation or other retiring allowance or gratuity, and the expression " pensionable " shall be construed accordingly, and the expression " pension benefits " includes benefits payable on retirement or death by way of lump sum or gratuity, and benefits payable in respect of a person's service or employment to other persons by way of widow's or orphan's pension or otherwise.

Remuneration and expenses of Commissioner and other persons.

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• (1) The Minister shall pay to the National Insurance Commissioner and any deputy Commissioner appointed under this Act such salary or other remuneration as the Treasury may determine and such expenses incurred in connection with the work of the Commissioner, a deputy Commissioner or any tribunal presided over by the Commissioner or a deputy Commissioner as may be so determined.

• (2) The Minister may pay—

• (a) to any other person appointed under the foregoing provisions of this Part of this Act to determine questions or as a member of or assessor to any tribunal constituted under those provisions, such remuneration and such travelling and other allowances,

• (b) to any person required to attend at any proceedings under this Part of this Act, such travelling and other allowances, and

• (c) such other expenses in connection with the work of any person or tribunal appointed or constituted under any provision of this Part of this Act (other than a tribunal presided over by the Commissioner or a deputy Commissioner),

as the Minister with the consent of the Treasury may determine.

• (3) The Minister may pay to any person required under this Act (whether for the purposes of the foregoing provisions of this Part of this Act or otherwise) to attend for or to submit himself to medical or other examination or treatment such travelling and other allowances as the Minister with the consent of the Treasury may determine.

• (4) In this section references to travelling and other allowances include references to compensation for loss of remunerative time :

Provided that such compensation shall not be paid to any person in respect of any time during which he is in receipt of remuneration under this section.

Recovery of benefit wrongly paid, interim payments of benefit, and arrears.

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• (1) Where benefit is or has been paid in pursuance of a decision which is reversed or varied on appeal, or is revised on a review, then, subject to subsection (2) of this section, the decision given on the appeal or review shall require repayment to the National Insurance Fund of any benefit paid in pursuance of the original decision to the extent to which it—

• (a) would not have been payable if the decision on the appeal or review had been given in the first instance; and

• (b) is not directed to be treated as paid on account of the benefit awarded by the decision on appeal or review, or as having been properly paid.

• (2) A decision given on appeal or review shall not require repayment of benefit paid in pursuance of the original decision in any case where it is shown to the satisfaction of the person or tribunal determining the appeal or review that in the obtaining and receipt of the benefit the beneficiary, and any person acting for him, has throughout used due care and diligence to avoid overpayment.

• (3) Regulations may make provision as respects matters arising—

• (a) pending the determination under this Act (whether in the first instance or on an appeal or reference, and whether originally or on review) of any claim for benefit or of any question affecting any person's right to benefit or to the receipt thereof or any person's liability for contributions ; or

• (b) out of the revision on appeal or review of any decision under this Act on any such claim or question.

• (4) Without prejudice to the generality of subsection (3) of this section, regulations thereunder may include provision—

• (a) as to the date from which any decision on a review is to have effect or to be deemed to have had effect;

• (b) for treating any benefit paid to any person under an award, or by virtue of any provision of the regulations, which it is subsequently decided was not payable, as properly paid or as paid on account of any other benefit which it is decided was payable to him, or for the repayment of any such benefit and the recovery thereof by deduction from other benefit or otherwise;

• (c) modifying subsections (1) and (2) of this section in relation to sums paid by way of benefit in respect of a child of the family of a man and his wife living together where those sums would have been receivable, if properly paid, by either the man or the wife;

• (d) making any such provision for the recovery of sums paid by way of benefit and required to be repaid by virtue of subsection (1) of this section as is authorised to be made in a case where repayment is required by the regulations.

• (5) Where in the case of any sums paid by way of benefit before 26th February 1962—

• (a) the decision in pursuance of which they were paid was before that date reversed or varied on an appeal, or revised on a review, in such a way that those sums or any part of them would not have been payable if the decision on appeal or review had been given in the first instance; and

• (b) that decision on appeal or review is itself reversed or varied on an appeal, or revised on a review, under this Act,

any question arising on the appeal or review under this Act as to the repayment of those sums or that part of them shall be determined in accordance with the provisions as to repayment in force immediately before that date.

• (6) Where, in the case of any person, any sum may by virtue of regulations under subsection (3) of this section be recovered by deduction from benefit under this Act, it may instead be recovered from him in whole or in part by deduction from any payment under the Industrial Injuries Act, and any amount so recovered shall be paid to the National Insurance Fund.

• (7) Regulations may provide for unemployment benefit of which repayment is required by virtue of subsection (1) of this section to be repaid to or through a local education authority administering unemployment benefit by virtue of section 11 of the Employment and Training Act 1948.

• (8) The provisions of Schedule 7 to this Act shall have effect to enable sums paid by way of benefit under this Act or the Industrial Injuries Act or by way of family allowance, and afterwards found not to have been payable, to be treated as paid on account of any sums properly payable to the same person by way of such a benefit or allowance, or to be treated as properly paid, and to provide for matters arising out of their being so treated.

• (9) Nothing in this Act shall prejudice the provisions of sections 13 and 14 of the National Assistance Act 1948 with respect to the abatement of payments in respect of arrears of benefit.

Saving for Tribunals and Inquiries Act 1958.

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The provisions of this Part of this Act shall have effect subject to the provisions of the Tribunals and Inquiries Act 1958.

Part V — Finance, Administration and Legal Proceedings

Finance.

National Insurance Fund.

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National Insurance (Reserve) Fund.

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• (1) The National Insurance (Reserve) Fund shall continue to be maintained under the control and management of the Minister as a reserve for the National Insurance Fund.

• (2) Section 83(3) to (6) of this Act shall apply to the National Insurance (Reserve) Fund as they apply to the National Insurance Fund.

• (3) Any sums determined by the Treasury to be income of the National Insurance (Reserve) Fund shall be paid into the National Insurance Fund.

• (4) Subject to the foregoing provisions of this section, a payment out of the National Insurance (Reserve) Fund shall not be made otherwise than under the authority of a resolution of the Commons House of Parliament and shall be made subject to such conditions as to repayment or otherwise as may be specified in the resolution.

• (5) There may be transferred from time to time from the National Insurance Fund to the National Insurance (Reserve) Fund such assets as the Minister, with the approval of the Treasury, may determine.

Expenses of Minister and other government departments.

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• (1) Without prejudice to subsection (4) of this section, any expenses incurred by the Minister or any other government department (except the Postmaster General) in carrying this Act into effect, including—

• (a) such part of the sums referred to in subsection (2) of this section as is attributable to the execution of this Act;

• (b) expenses in connection with any inquiry undertaken on behalf of the Minister with a view to obtaining statistics relating to the operation of this Act; and

• (c) any expenses which under section 9(2) of the Friendly Societies Act 1955 are to be treated as expenses incurred in carrying this Act into effect,

shall, unless required by or under some provision of this Act to be paid and borne in some other manner, be paid out of moneys provided by Parliament.

• (2) The Minister shall from time to time pay to the Postmaster General as part of the expenses of the Minister in carrying into effect the following enactments respectively, that is to say—

• (a) this Act;

• (b) the Industrial Injuries Act;

• (c) the Family Allowances Act;

• (d) section 89 of the Industrial Injuries Act of 1946 ;

• (e) the Workmen's Compensation (Supplementation) Act 1951;

• (f) the Industrial Diseases (Benefit) Acts 1951 and 1954;

• (g) the Workmen's Compensation and Benefit (Supplementation) Act 1956,

sums of such amounts as may be agreed between the Minister and the Postmaster General for work done by the Postmaster General in the execution of the said enactments; and any sums so paid shall, where necessary for the purpose of determining what part of those sums should be attributed to each respectively of those enactments, be apportioned between them in such manner as may be determined by the Minister in accordance with any directions given by the Treasury.

• (3) Without prejudice to any right of recovery or retainer under this Act, any expenses of a Minister of the Crown in making under section 62 of this Act payments in lieu of contributions shall be defrayed out of moneys provided by Parliament ; and any sums recovered or retained by a Minister of the Crown in respect of any such payments shall be paid into the Exchequer.

• (4) There shall be paid to the Treasury out of the National Insurance Fund, at such times and in such manner as the Treasury may direct, such sum as the Minister may estimate in accordance with subsections (5) to (7) of this section and with directions given by the Treasury to be the amount of the expenses incurred as mentioned in subsection (1) thereof.

• (5) Subject to subsections (6) and (7) of this section, in estimating for the purposes of subsection (4) of this section the expenses incurred as mentioned in subsection (1) thereof there shall be included—

• (a) such amount in respect of any pension benefits which will or may become payable in respect of a person's service as National Insurance Commissioner or deputy Commissioner under this Act or in respect of a person's employment as officer, inspector or servant for the purposes of this Act as in the opinion of the Treasury approximately represents the amount of the accruing liability for the sums which will become payable out of moneys provided by Parliament for those pension benefits, after taking into account that person's contributions, if any;

• (b) an amount determined by the Treasury with the consent of the Minister in respect of the use of any premises belonging to the Crown and used for the purposes of this Act, regard being had in making that determination to the rental value of the premises.

• (6) There shall be left out of account in estimating for the purposes of subsection (4) of this section the expenses incurred as mentioned in subsection (1) thereof—

• (a) any expenses incurred by virtue of section 62 or 112 of this Act;

• (b) any sums paid for pension benefits in respect of a person's service as National Insurance Commissioner or deputy Commissioner and, so far as estimated by the Minister to be attributable to the operation of section 5(2) or 8(1) to (3) of the Family Allowances Act or section 36 of the Industrial Injuries Act, the accruing liability for such pension benefits.

• (7) There shall be left out of account for the purposes of subsections (1) and (4) of this section any expenses, or amounts which under subsection (5) of this section would otherwise fall to be included in estimating expenses, in so far as they are treated—

• (a) under section 61(1)(b) to (d) of the Industrial Injuries Act as expenses incurred in carrying that Act into effect; or

• (b) under section 16 of the Family Allowances Act as expenses incurred in the administration of that Act; or

• (c) for the purposes of section 3(1) of the Health Contributions Act as attributable to the collection and application of national health service contributions.

• (8) In subsection (2) of this section, the references to this Act, the Industrial Injuries Act and the Family Allowances Act shall (except so far as otherwise provided, whether expressly or by implication) respectively include references to any enactments which, under any Act passed after this Act, are included in any citation which uses the phrase " the National Insurance Acts ", " the National Insurance (Industrial Injuries) Acts " or " the Family Allowances Acts ", as the case may be; and in subsections (5)(a) and (6)(b) of this section, the expression pension benefits " includes benefits payable on retirement or death by way of lump sum or gratuity, and benefits payable in respect of a person's service or employment to other persons by way of widow's or orphan's pension or otherwise.

Reports by Government Actuary.

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