Legalize / United Kingdom / Public General Act

Social Security Act 1986

Type Public General Act

Publication 1986-07-25

Last updated 2010-01-01

State In force

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

Part I — Pensions

Personal pension schemes

Minimum contributions to personal pension schemes

1

Appropriate schemes

2

Amount of minimum contributions

3

Effect of payment of minimum contributions on rate of certain benefits

4

Personal pension protected rights premium

5

Occupational pension schemes

Money purchase contracted-out schemes

6

Schemes becoming contracted-out between 1986 and 1993

7

Abolition of requirement relating to requisite benefits

8

Guaranteed minimum pensions

9

(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8) In section 59 of that Act (increase of official pensions) the following subsection shall be inserted after subsection (5)—

(5A) Nothing in section 37A(13), (14) or (15) above authorises any deduction from an increase in the rate of an official pension under this section.

(9) In section 59A of that Act (modification of effect of section 59(5)) the following subsection shall be inserted after subsection (2)—

(2A) Where in any tax year— (a) an increase is calculated in accordance with a direction under this section; and (b) the amount by reference to which the increase is calculated, or any part of it, is increased in that tax year under section 37A above, the increase calculated in accordance with the direction shall be reduced by the amount of the increase under section 37A above.

Short-service benefit: qualifying service

10

Auditors

11

Provisions applying to personal and occupational pension schemes

Voluntary contributions

12

Regulations as to form and content of advertisements

13

Information

14

Terms of contracts of service or schemes restricting choice to be void

15

Actuarial tables

16

General power to modify statutory provisions

17

Additional pensions

18

Additional pensions-supplementary

19

(1) The additional pension falling to be calculated under section 6 of the Social Security Pensions Act 1975 by virtue of any of the following provisions—

(a) section 7 (rate of widow's Category B retirement pension) ;

(b) section 8 (Category B retirement pension for widower);

(d) section 16(4) (invalidity pension for widowers),

shall be one-half of the amount so calculated if the deceased spouse died after 5th April 2000.

(2) In paragraph 4 of Schedule 1 to that Act—

(a) the words " Subject to sub-paragraph (2A) below, where " shall be substituted for the word " Where ", in sub-paragraphs (1) and (2); and

(b) the following sub-paragraph shall be inserted after sub-paragraph (2)—

(2A) If a married person dies after 5th April 2000, the rate of the retirement pension for that person's widow or widower shall be increased by an amount equivalent to the sum of— (a) the increase in the basic pension to which the deceased spouse was entitled ; and (b) one-half of the increase in the additional pension.

(3) In sub-paragraph (1) of paragraph 4A of that Schedule after the word "increased" there shall be inserted the words " , subject to sub-paragraph (1A) below, ".

(4) The following sub-paragraph shall be inserted after that sub-paragraph—

(1A) Where the husband dies after 5th April 2000, sub-paragraph (1) above shall have effect in relation to his widow as if for the words from " the following amounts " onwards there were substituted the words " the following amounts— (i) one-half of the appropriate amount after it has been reduced by the amount of any increases under section 37A of this Act; and (ii) one-half of any increase to which he had been entitled under this paragraph.

(5) In sub-paragraph (2), after the word "increased" there shall be inserted the words " , subject to sub-paragraph (2A) below, ".

(6) The following sub-paragraph shall be inserted after that sub-paragraph—

(2A) Where the wife dies after 5th April 1989, sub-paragraph (2) above shall have effect as if for the words from " an amount", in the first place where those words occur, to the end there were substituted— (a) if she dies before 6th April 2000, the words an amount equal to the sum of— (i) that increase, so far as attributable to employment before 6th April 1988 ; (ii) one-half of that increase, so far as attributable to employment after 5th April 1988 ; (iii) the appropriate amount reduced by the amount of any increases under section 37A of this Act; and (iv) any increase to which she had been entitled under this paragraph. (b) if she dies after 5th April 2000, the words an amount equal to the sum of— (i) one-half of that increase so far as attributable to employment before 6th April 1988; (ii) one-half of the appropriate amount after it has been reduced by the amount of any increases under section 37A of this Act; and (iii) one-half of any increase to which she had been entitled under this paragraph.

General

20

Amount etc.

21

(1) Where a person is entitled to income support—

(a) if he has no income, the amount shall be the applicable amount; and

(b) if he has income, the amount shall be tile difference between his income and the applicable amount.

(2) Where a person is entitled to family credit by virtue of section 20(5)(a)(i) above, the amount shall be the amount which is the appropriate maximum family credit in his case.

(3) Where a person is entitled to family credit by virtue of section 20(5)(a)(ii) above, the amount shall be what remains after the deduction from the appropriate maximum family credit of a prescribed percentage of the excess of his income over the applicable amount

(4) Where a person is entitled to housing benefit by virtue of section 20(7)(c)(i) above, the amount shall be the amount which is the appropriate maximum housing benefit in his case.

(5) Where a person is entitled to housing benefit by virtue of section 20(7)(c)(ii) above, the amount shall be what remains after the deduction from the appropriate maximum housing benefit of prescribed percentages of the excess of his income over the applicable amount.

(6) Regulations shall prescribe the manner in which—

(a) the appropriate maximum family credit;

(b) the appropriate maximum housing benefit,

are to be determined in any case.

(7) Where the amount of any income-related benefit would be less than a prescribed amount, it shall not be payable except in prescribed circumstances.

Calculation

22

(1) The applicable amount shall be such amount or the aggregate of such amounts as may be prescribed.

(2) The power to prescribe applicable amounts conferred by subsection (1) above includes power to prescribe nil as an applicable amount.

(3) In relation to income support and housing benefit the applicable amount for a severely disabled person shall include an amount in respect of his being a severely disabled person.

(4) Regulations may specify circumstances in which persons are to be treated as being or as not being severely disabled.

(5) Where a person claiming an income-related benefit is a member of a family, the income and capital of any member of that family shall, except in prescribed circumstances, be treated as the income and capital of that person.

(6) No person shall be entitled to an income-related benefit if his capital or a prescribed part of it exceeds the prescribed amount.

(7) Regulations may provide that capital not exceeding the amount prescribed under subsection (6) above but exceeding a prescribed lower amount shall be treated, to a prescribed extent, as if it were income of a prescribed amount.

(8) Income and capital shall be calculated or estimated in such manner as may be prescribed.

(9) Circumstances may be prescribed in which—

(a) a person is treated as possessing capital or income which he does not possess ;

(b) capital or income which a person does possess is to be disregarded;

(d) capital is to be treated as income.

Income support

Trade disputes

23

Recovery of expenditure on benefit from person liable for maintenance

24

(1) Subject to the following provisions of this section, if income support is claimed by or in respect of a person whom another person is liable to maintain or paid to or in respect of such a person, the Secretary of State may make a complaint against the liable person to a magistrates' court for an order under this section.

(2) Except in a case falling within subsection (3) below, this section does not apply where the person who is liable to be maintained is an illegitimate child of the liable person.

(3) A case falls within this subsection if—

(a) the liable person is someone other than the child's father ; or

(b) the liable person is liable because he is a person such as is mentioned in section 26(3)(c) below.

(4) On the hearing of a complaint under this section the court shall have regard to all the circumstances and, in particular, to the income of the liable person, and may order him to pay such sum, weekly or otherwise, as it may consider appropriate, except that in a case falling within section 26(3)(c) below that sum shall not include any amount which is not attributable to income support (whether paid before or after the making of the order).

(5) In determining whether to order any payments to be made in respect of income support for any period before the complaint was made, or the amount of any such payments, the court shall disregard any amount by which the liable person's income exceeds the income which was his during that period.

(6) Any payments ordered to be made under this section shall be made—

(a) to the Secretary of State in so far as they are attributable to any income support (whether paid before or after the making of the order);

(b) to the person claiming income support or (if different) the dependant; or

(7) An order under this section shall be enforceable as an affiliation order.

(8) In the application of this section to Scotland, subsections (2), (3) and (7) shall be omitted and for the references to a complaint and to a magistrates' court there shall be substituted respectively references to an application and to the sheriff.

(9) On an application under subsection (1) above a court in Scotland may make a finding as to the parentage of a child for the purpose of establishing whether a person is, for the purposes of this section and section 26 below, liable to maintain him.

Affiliation orders

25

(1) If—

(a) income support is claimed by or in respect of an illegitimate child or paid in respect of such a child; and

(b) no affiliation order is in force ; and

the Secretary of State may, within three years from the time of the claim or payment, make application to a justice of the peace appointed for the commission area (within the meaning of the Justices of the Peace Act 1979) in which the mother of the child resides for a summons to be served under section 1 of the Affiliation Proceedings Act 1957.

(2) In any proceedings on an application under subsection (1) above the court shall hear such evidence as the Secretary of State may produce, and shall in all respects, subject to the provisions of subsection (3) below, proceed as on an application made by the mother under section 1 of the Affiliation Proceedings Act 1957.

(3) An affiliation order—

(a) made on an application by the Secretary of State under subsection (1) above; or

(b) made on an application made by the Secretary of State in proceedings brought by the mother of the child under section 1 of the Affiliation Proceedings Act 1957,

may be made so as to provide that the payments or a part of the payments to be made under the order shall, instead of being made to a person entitled under section 5 of that Act, be made to the Secretary of State or to such other person as the court may direct.

(4) Any affiliation order, whether made before or after the commencement of this section, may, on the application of the Secretary of State, be varied so as to provide for the making of payments, or part of them, as mentioned in subsection (3) above; and an application by the Secretary of State under this subsection may be made—

(a) notwithstanding that the mother has died and no person has been appointed to have the custody of the child; and

(b) where the child is not in the care of the mother and she is not contributing to his maintenance, without making her a party to the proceedings.

(5) An affiliation order which provides for the making of payments, or part of them, as mentioned in subsection (3) above, may, on the application of the mother of the child, be varied so as to provide that the payments shall be made to a person entitled under section 5 of the Affiliation Proceedings Act 1957.

Failure to maintain-general

26

(1) If—

(a) any person persistently refuses or neglects to maintain himself or any person whom he is liable to maintain; and

(b) in consequence of his refusal or neglect income support is paid to or in respect of him or such a person,

he shall be guilty of an offence and liable on summary conviction to imprisonment for a term not exceeding three months or to a fine of an amount not exceeding level 4 on the standard scale or to both.

(2) For the purposes of subsection (1) above a person shall not be taken to refuse or neglect to maintain himself or any other person by reason only of anything done or omitted in furtherance of a trade dispute.

(3) For the purposes of this section and sections 24 and 25 above—

(a) a man shall be liable to maintain his wife and his children;

(b) a woman shall be liable to maintain her husband and her children; and

(c) a person shall be liable to maintain another person throughout any period in respect of which the first-mentioned person has, on or after 23rd May 1980 (the date of the passing of the Social Security Act 1980) and either alone or jointly with a further person, given an undertaking in writing in pursuance of immigration rules within the meaning of the Immigration Act 1971 to be responsible for the maintenance and accommodation of the other person.

(4) In subsection (3) above—

(a) the reference to a man's children includes a reference to children of whom he has been adjudged to be the father; and

(b) the reference to a woman's children includes a reference to her illegitimate children.

(5) Subsection (4) above does not apply to Scotland, and in the application of subsection (3) above to Scotland any reference to children shall be construed as a reference to children whether or not their parents have ever been married to one another.

(6) A document bearing a certificate which—

(a) is signed by a person authorised in that behalf by the Secretary of State; and

(b) states that the document apart from the certificate is, or is a copy of, such an undertaking as is mentioned in subsection (3)(c) above,

shall be conclusive of the undertaking in question for the purpose of this section and section 24 above; and a certificate purporting to be so signed shall be deemed to be so signed until the contrary is proved.

Prevention of duplication of payments

27

(1) Where—

(a) a payment by way of prescribed income is made after the date which is the prescribed date in relation to the payment; and

(b) it is determined that an amount which has been paid by way of income support would not have been paid if the payment had been made on the prescribed date,

the Secretary of State shall be entitled to recover that amount from the person to whom it was paid.

(2) Where—

(a) a prescribed payment which apart from this subsection falls to be made from public funds in the United Kingdom or under the law of any other member State is not made on or before the date which is the prescribed date in relation to the payment; and

(b) it is determined that an amount ("the relevant amount") has been paid by way of income support that would not have been paid if the payment mentioned in paragraph (a) above had been made on the prescribed date,

then—

(i) in the case of a payment from public funds in the United Kingdom, the authority responsible for making it may abate it by the relevant amount; and

(ii) in the case of any other payment, the Secretary of State shall be entitled to receive the relevant amount out of the payment.

(3) Where—

(a) a person (in this subsection referred to as A) is entitled to any prescribed benefit for any period in respect of another person (in this subsection referred to as B); and

(b) either—

(i) B has received income support for that period ; or

(ii) B was, during that period, a member of the same family as some person other than A who received income support for that period; and

(c) the amount of the income support has been determined on the basis that A has not made payments for the maintenance of B at a rate equal to or exceeding the amount of the prescribed benefit,

the amount of the prescribed benefit may, at the discretion of the authority administering it, be abated by the amount by which the amounts paid by way of income support exceed what it is determined that they would have been had A, at the time the amount of the income support was determined, been making payments for the maintenance of B at a rate equal to the amount of the prescribed benefit.

(4) Where an amount could have been recovered by abatement by virtue of subsection (2) or (3) above but has not been so recovered, the Secretary of State may recover it otherwise than by way of abatement—

(a) in the case of an amount which could have been recovered by virtue of subsection (2) above, from the person to whom it was paid; and

(b) in the case of an amount which could have been recovered by virtue of subsection (3) above, from the person to whom the prescribed benefit in question was paid.

(5) Where a payment is made in a currency other than sterling, its value in sterling shall be determined for the purposes of this section in accordance with regulations.

Housing benefit

Arrangements for housing benefit

28

Adjudication and overpayments

29

(1) Regulations shall require authorities to notify a person who has claimed housing benefit of their determination of that claim.

(2) Any such notification shall be given in such form as may be prescribed.

(3) Regulations shall make provision for reviews of determinations relating to housing benefit.

(4) Except where regulations otherwise provide, any amount of housing benefit paid in excess of entitlement may be recovered in such manner as may be prescribed either by the Secretary of State or by the authority which paid the benefit.

(5) Regulations may require such an authority to recover such an amount in such circumstances as may be prescribed.

(6) An amount recoverable under this section is in all cases recoverable from the person to whom it was paid; but, in such circumstances as may be prescribed, it may also be recovered from such other person as may be prescribed.

(7) Any amount recoverable under this section may, without prejudice to any other method of recovery, be recovered by deduction from prescribed benefits.

Housing benefit finance

30

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Information

31

32

33

(1) A social fund payment such as is mentioned in section 32(2)(b) above may be awarded to a person only if an application for such a payment has been made by him or on his behalf.

(2) The questions whether such a payment is to be awarded and how much it is to be shall be determined by a social fund officer.

(3) A social fund officer may determine that an award shall be payable in specified instalments at specified times.

(4) A social fund officer may determine that an award is to be repayable.

(5) An award which is repayable shall be recoverable by the Secretary of State.

(6) Without prejudice to any other method of recovery, the Secretary of State may recover an award by deduction from prescribed benefits.

(7) The Secretary of State may recover an award—

(a) from the person to or for the benefit of whom it was made;

(b) where that person is a member of a married or unmarried couple, from the other member of the couple;

(c) from a person who is liable to maintain the person by or on behalf of whom the application for the award was made or any person in relation to whose needs the award was made.

(8) Subsections (3) to (6) of section 26 above have effect for the purposes of subsection (7)(c) above as they have effect for the purposes of sections 24 to 26 above.

(9) In determining whether to make an award to the applicant or the amount or value to be awarded an officer shall have regard,

subject to subsection (10) below, to all the circumstances of the case and, in particular—

(a) the nature, extent and urgency of the need;

(b) the existence of resources from which the need may be met;

(d) where the payment is repayable, the likelihood of repayment and the time within which repayment is likely;

(e) any relevant allocation under section 32(8) above.

(10) An officer shall determine any question under this section in accordance with any general directions issued by the Secretary of State and in determining any such question shall take account of any general guidance issued by him.

(11) Payment of an award shall be made to the applicant unless the social fund officer determines otherwise.

(12) In this section " married couple" and " unmarried couple " are to be construed in accordance with Part II of this Act and regulations made under it.

Reviews

34

(1) A social fund officer—

(a) shall review a determination made under this Part of this Act by himself or some other social fund officer, if an application for a review is made to him within such time and in such form and manner as may be prescribed by or on behalf of the person who applied for the social fund payment to which the determination relates; and

(b) may review such a determination in such other circumstances as he thinks fit;

and may exercise on a review any power exercisable by an officer under section 33 above.

(2) The power to review a determination conferred on a social fund officer by subsection (1) above includes power to review a determination made by a social fund officer on a previous review.

(3) On an application made by or on behalf of the person to whom a determination relates within such time and in such form and manner as may be prescribed a determination of a social fund officer which has been reviewed shall be further reviewed by a social fund inspector appointed by the social fund Commissioner under section 35 below.

(4) On a review a social fund inspector shall have the following powers—

(a) power to confirm the determination made by the social fund officer;

(b) power to make any determination which a social fund officer could have made;

(5) A social fund inspector may review a determination under subsection (3) above made by himself or some other social fund inspector.

(6) In determining a question on a review a social fund officer or social fund inspector shall have regard, subject to subsection (7) below, to all the circumstances of the case and, in particular, to the matters specified in section 33(9)(a) to (e) above.

(7) An officer or inspector shall determine any question on a review in accordance with any general directions issued by the Secretary of State under section 33(10) above and any general directions issued by him with regard to reviews and in determining any such question shall take account of any general guidance issued by him under that subsection or with regard to reviews.

(8) Directions under this section may specify—

(a) the circumstances in which a determination is to be reviewed; and

(b) the manner in which a review is to be conducted.

35

(1) There shall be an officer to be known as the social fund Commissioner (in this section referred to as " the Commissioner ").

(2) The Commissioner shall be appointed by the Secretary of State.

(3) The Commissioner—

(a) shall appoint such social fund inspectors;

(b) may appoint such officers and staff for himself and for social fund inspectors, as he thinks fit, but with the consent of the Secretary of State and the Treasury as to numbers.

(4) Appointments under subsection (3) above shall be made from persons made available to the Commissioner by the Secretary of State.

(5) It shall be the duty of the Commissioner—

(a) to monitor the quality of decisions of social fund inspectors and give them such advice and assistance as he thinks fit to improve the standard of their decisions ;

(b) to arrange such training of social fund inspectors as he considers appropriate; and

(c) to carry out such other functions in connection with the work of social fund inspectors as the Secretary of State may direct.

(6) The Commissioner shall report annually in writing to the Secretary of State on the standards of reviews by social fund inspectors and the Secretary of State shall publish his report.

Widowhood

36

Invalid care allowance for women

37

(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) The Social Security Benefit (Dependency) Regulations 1977 shall have effect, and shall be treated as having had effect from 22nd December 1984, as if the following sub-paragraphs were substituted for sub-paragraphs (a) and (b) of paragraph 7 of Schedule 2 (increases of invalid care allowance)—

(a) a spouse who is not engaged in any one or more employments from which the spouse’s weekly earnings exceed that amount; or (b) some person (not being a child) who— (i) has the care of a child or children in respect of whom the beneficiary is entitled to child benefit, being a child or children in respect of whom the beneficiary is entitled to an increase of an invalid care allowance or would be so entitled but for the provisions of any regulations for the time being in force under the Act relating to overlapping benefits; (ii) is not undergoing imprisonment or detention in legal custody; (iii) is not engaged in any one or more employments (other than employment by the beneficiary in caring for a child or children in respect of whom the beneficiary is entitled to child benefit) from which the person’s weekly earnings exceed that amount; (iv) is not absent from Great Britain, except for any period during which the person is residing with the beneficiary outside Great Britain and for which the beneficiary is entitled to an invalid care allowance.

Abolition of maternity grant

38

Industrial injuries and diseases

39

Schedule 3 to this Act shall have effect in relation to Chapters IV and V of Part II of the Social Security Act 1975 and associated enactments.

Abolition of child's special allowance except for existing beneficiaries

40

Abolition of death grant

41

Death grant shall not be payable in respect of a death which occurs after the commencement of this section.

Abolition of reduced rate of short-term benefits

42

Paragraphs (a) to (c) of section 33(1) of the Social Security Act 1975 (reduced rate of short-term benefits payable on partial satisfaction of contribution conditions) shall cease to have effect.

Unemployment benefit-disqualification

43

(1) The following subsection shall be substituted for section 18(4) of the Social Security Act 1975—

(4) Regulations may provide for a person who would be entitled to unemployment benefit but for the operation of any provision of this Act or of regulations disentitling him to it or disqualifying him for it to be treated as if entitled to it for the purposes of this section.

(2) " 13 " shall be substituted for " 6 "—

(a) in section 20(1) of that Act; and

(b) in regulation 8(4)(b) of the Supplementary Benefit (Requirements) Regulations 1983.

(3) In the Social Security Act 1975—

(a) the following subsection shall be inserted after section 20(1)—

(1A) The Secretary of State may by order substitute a longer or shorter period for the period for the time being mentioned in subsection (1) above.

; and

(b) in section 167(1)(b) (affirmative procedure for certain orders) the words " section 20(1A)" shall be inserted before the word " or ", in the second place where it occurs.

Unemployment benefit-trade disputes

44

(1) The following subsections shall be substituted for subsection (1) of section 19 of the Social Security Act 1975 (disqualification for unemployment benefit)—

(1) Subject to the following provisions of this section— (a) an employed earner who has lost employment as an employed earner by reason of a stoppage of work due to a trade dispute at his place of employment is disqualified for receiving unemployment benefit for any day during the stoppage unless he proves that he is not directly interested in the dispute; and (b) an employed earner who has withdrawn his labour in furtherance of a trade dispute but does not fall within paragraph (a) above is disqualified for receiving unemployment benefit for any day on which his labour remains withdrawn. (1A) A person disqualified under subsection (1)(a) above for receiving unemployment benefit shall cease to be so disqualified if he proves that during the stoppage— (a) he has become bona fide employed elsewhere; or (b) his employment has been terminated by reason of redundancy within the meaning of section 81(2) of the Employment Protection (Consolidation) Act 1978; or (c) he has bona fide resumed employment with his employer but has subsequently left for a reason other than the trade dispute.

(2) The following shall be inserted after section 49 of that Act—

(49A) A beneficiary shall not be entitled— (a) to an increase in any benefit under sections 44 to 48 above; or (b) to an increase in benefit for an adult dependant by virtue of regulations under section 49 above, if the person in respect of whom he would be entitled to the increase— (i) is disqualified under section 19 above for receiving unemployment benefit; or (ii) would be so disqualified if he were otherwise entitled to that benefit

Guardian's allowance-adoption

45

In section 38 of the Social Security Act 1975 (guardian's allowance)—

(a) in subsection (6), for the word " No " there shall be substituted the words " Subject to subsection (7) below, no " ; and

(b) the following subsection shall be inserted after subsection (6)—

(7) Where a person— (a) has adopted a child; and (b) was entitled to guardian's allowance in respect of the child immediately before the adoption, subsecton (6) above shall not terminate his entitlement

Part V — Maternity Pay Etc.

Statutory maternity pay-entitlement and liability to pay

46

The maternity pay period

47

(1) Subject to the provisions of this Part of this Act, statutory maternity pay shall be payable in respect of each week during a prescribed period (" the maternity pay period ") of a duration not exceeding 18 weeks.

(2) Subject to subsections (3) and (7) below, the first week of the maternity pay period shall be the 11th week before the expected week of confinement.

(3) Cases may be prescribed in which the first week of the period is to be a prescribed week later than the 11th week before the expected week of confinement, but not later than the 6th week before the expected week of confinement.

(4) Statutory maternity pay shall not be payable to a woman by a person in respect of any week during any part of which she works under a contract of service with him.

(5) It is immaterial for the purposes of subsection (4) above whether the work referred to in that paragraph is work under a contract of service which existed immediately before the maternity pay period or a contract of service which did not so exist.

(6) Except in such cases as may be prescribed, statutory maternity pay shall not be payable to a woman in respect of any week after she has been confined and during any part of which she works for any employer who is not liable to pay her statutory maternity pay.

(7) Regulations may provide that this section shall have effect subject to prescribed modifications in relation—

(a) to cases in which a woman has been confined before the 11th week before the expected week of confinement ; and

(b) to cases in which—

(i) a woman is confined between the 11th and 6th weeks before the expected week of confinement; and

(ii) the maternity pay period has not then commenced for her.

Rates of payment

48

(1) There shall be two rates of statutory maternity pay, in this Act referred to as " the higher rate " and " the lower rate ".

(2) The higher rate is a weekly rate equivalent to nine-tenths of a woman's normal weekly earnings for the period of 8 weeks immediately preceding the 14th week before the expected week of confinement.

(3) The lower rate is such weekly rate as may be prescribed.

(4) Subject to the following provisions of this section, statutory maternity pay shall be payable at the higher rate to a woman who for a continuous period, of at least 2 years ending with the week immediately preceding the 14th week before the expected week of confinement has been an employee in employed earner's employment of any person liable to pay it to her, and shall be so paid by any such person in respect of the first 6 weeks in respect of which it is payable.

(5) Statutory maternity pay shall not be payable at the higher rate to a woman whose relations with the person liable to pay it are or were governed by a contract of service which normally involves or involved employment for less than 16 hours weekly unless during a continuous period of at least 5 years ending with the week immediately preceding the 14th week before the expected week of confinement her contract of service normally involved employment for 8 hours or more weekly.

(6) The Secretary of State may by regulations make provision as to when a contract of service is to be treated for the purposes of subsection (5) above as normally involving or having involved employment—

(a) for less than 16 hours weekly; or

(b) for 8 hours or more weekly,

or as not normally involving or having involved such employment.

(7) Statutory maternity pay shall be payable to a woman at the lower rate if she is entitled to statutory maternity pay but is not entitled to payment at the higher rate.

(8) If a woman is entitled to statutory maternity pay at the higher rate, she shall be entitled to it at the lower rate in respect of the portion of the maternity pay period after the end of the 6 week period mentioned in subsection (4) above.

Further provisions relating to statutory maternity pay etc.

49

(1) Part I of Schedule 4 to this Act shall have effect for supplementing this Part of this Act.

(2) The Social Security Act 1975 shall have effect subject to the amendments set out in Part II of that Schedule.

(3) Part III of that Schedule shall have effect in relation to maternity pay under the Employment Protection (Consolidation) Act 1978 and to the Maternity Pay Fund.

Interpretation of Part V

50

(1) In this Part of this Act (including Schedule 4 to this Act)—

" confinement" means labour resulting in the issue of a living child, or labour after 28 weeks of pregnancy resulting in the issue of a child whether alive or dead, and " confined " shall be construed accordingly; and where a woman's labour begun on one day results in the issue of a child on another day she shall be taken to be confined on the day of the issue of the child or, if labour results in the issue of twins or a greater number of children, she shall be taken to be confined on the day of the issue of the last of them ;

" dismissed " is to be construed in accordance with section 55(2) to (7) of the Employment Protection (Consolidation) Act 1978 ;

" employee " means a woman who is— gainfully employed in Great Britain either under a contract of service or in an office (including elective office) with emoluments chargeable to income tax under Schedule E ; and over the age of 16 ; but subject to regulations which may provide for cases where any such woman is not to be treated as an employee for the purposes of this Part of this Act and for cases where a woman who would not otherwise be an employee for those purposes is to be treated as an employee for those purposes;

" employer ", in relation to a woman who is an employee and a contract of service of hers, means a person who under section 4 of the Social Security Act 1975 is, or but for subsection (2)(b) of that section would be, liable to pay secondary Class 1 contributions in relation to any of her earnings (within the meaning of that Act) under the contract;

" maternity pay period " has the meaning assigned to it by section 47(1) above;

" week " means a period of 7 days beginning with midnight between Saturday and Sunday or such other period as may be prescribed in relation to any particular case or class of cases.

(2) Without prejudice to any other power to make regulations under this Part of this Act, regulations may specify cases in which, for the purposes of this Part of this Act or of such provisions of this Part of this Act as may be prescribed—

(a) two or more employers are to be treated as one;

(b) two or more contracts of service in respect of which the same woman is an employee are to be treated as one.

(3) For the purposes of this Part of this Act a woman's normal weekly earnings shall, subject to subsection (5) below, be taken to be the average weekly earnings which in the relevant period have been paid to her or paid for her benefit under the contract of service with the employer in question.

(4) For the purposes of subsection (3) above " earnings " and " relevant period " shall have the meanings given to them by regulations.

(5) In such cases as may be prescribed a woman's normal weekly earnings shall be calculated in accordance with regulations.

Part VI — Common Provisions

Administration

Regulations about claims for and payments of benefit

51

Adjudication

52

(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Overpayments

53

Breach of regulations

54

(1) Regulations under any of the benefit Acts may provide for contravention of, or failure to comply with, any provision contained in regulations made under that Act to be an offence under that Act and for the recovery, on summary conviction of any such offence, of penalties not exceeding—

(a) for any one offence, level 3 on the standard scale; or

(b) for an offence of continuing any such contravention or failure after conviction, £40 for each day on which it is so continued.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

False representations for obtaining benefit etc.

55

Legal proceedings

56

(1) Any person authorised by the Secretary of State in that behalf may conduct any proceedings under the benefit Acts before a magistrates’ court . . . .

(2) Notwithstanding anything in any Act—

(a) proceedings for an offence under the benefit Acts . . . may be begun at any time within the period of three months from the date on which evidence, sufficient in the opinion of the Secretary of State to justify a prosecution for the offence, comes to his knowledge or within a period of twelve months from the commission of the offence, whichever period last expires; . . .

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) For the purposes of subsection (2) above—

(a) a certificate purporting to be signed by or on behalf of the Secretary of State as to the date on which such evidence as is mentioned in paragraph (a) of that subsection came to his knowledge shall be conclusive evidence of that date; . . .

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) In the application of this section to Scotland, the following provisions shall have effect in substitution for subsections (1) to (4A) above—

(a) proceedings for an offence under the benefit Acts may, notwithstanding anything in section 136 of the Criminal Procedure (Scotland) Act 1995, be commenced at any time within the period of three months from the date on which evidence sufficient in the opinion of the Lord Advocate to justify proceedings comes to his knowledge, or within the period of twelve months from the commission of the offence, whichever period last expires;

(b) for the purposes of this subsection—

(i) a certificate purporting to be signed by or on behalf of the Lord Advocate as to the date on which such evidence as is mentioned above came to his knowledge shall be conclusive evidence thereof;

(ii) subsection (3) of section 136 of the said Act of 1995 (date of commencement of proceedings) shall have effect as it has effect for the purposes of that section.

Offences by bodies corporate

57

(1) Where an offence under any of the benefit Acts which has been committed by a body corporate is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, a director, manager, secretary or other similar officer of the body corporate, or any person who was purporting to act in any such capacity, he, as well as the body corporate, shall be guilty of that offence and be liable to be proceeded against accordingly.

(2) Where the affairs of a body corporate are managed by its members, subsection (1) above applies in relation to the acts and defaults of a member in connection with his functions of management as if he were a director of the body corporate.

Inspection

58

Disclosure of information

59

Regulations as to notification of deaths

60

Subordinate legislation

Consultations on subordinate legislation

61

Subordinate legislation-miscellaneous

62

Annual up-rating of benefits

63

Effect of alteration of rates of benefit

64

(1) This section applies where the rate of any relevant benefit is altered—

(a) by an Act subsequent to this Act;

(b) by an order under section 63 above ; or

and in this section " the commencing date " means the date fixed for payment of benefit at an altered rate to commence.

(2) Subject to such exceptions or conditions as may be prescribed where—

(a) the weekly rate of a relevant benefit is altered to a fixed amount higher or lower than the previous amount; and

(b) before the commencing date an award of that benefit has been made (whether before or after the passing of the relevant Act or the making of the relevant order),

except as respects any period falling before the commencing date, the benefit shall become payable at the altered rate without any claim being made for it in the case of an increase in the rate of benefit or any review of the award in the case of a decrease, and the award shall have effect accordingly.

(3) Where—

(a) the weekly rate of a relevant benefit is altered; and

(b) before the commencing date (but after that date is fixed) an award is made of the benefit,

the award either may provide for the benefit to be paid as from the commencing date at the altered rate or may be expressed in terms of the rate appropriate at the date of the award.

(4) Where in consequence of the passing of an Act, or the making of an order, altering the rate of disablement pension under section 57 of the Social Security Act 1975, regulations are made varying the scale of disablement gratuities under subsection (5) of that section, the regulations may provide that the scale as varied shall apply only in cases where the period taken into account by the assessment of the extent of the disablement in respect of which the gratuity is awarded begins or began after such day as may be prescribed.

(5) Subject to such exceptions or conditions as may be prescribed, where—

(a) for any purpose of any Act or regulations the weekly rate at which a person contributes to the cost of providing for a child, or to the maintenance of an adult dependant, is to be calculated for a period beginning on or after the commencing date for an increase in the weekly rate of benefit; but

(b) account is to be taken of amounts referable to the period before the commencing date,

those amounts shall be treated as increased in proportion to the increase in the weekly rate of benefit.

(6) In this section " relevant benefit" means benefit under the Social Security Act 1975 or the Industrial Injuries and Diseases (Old Cases) Act 1975.

Reciprocal arrangements

65

(1) At the end of subsection (4)(b) of section 142 of the Social Security Act 1975 (co-ordination with Northern Ireland) there shall be added " (but not so as to confer any double benefit) and for determining, in cases where rights accrue both in relation to Great Britain and in relation to Northern Ireland, which of those rights shall be available to the person concerned ".

(2) In subsection (1) of section 143 of that Act (reciprocity with other countries)—

(a) for the words from " reciprocity " to the end of paragraph (c) there shall be substituted the words " reciprocity in matters relating to payments for purposes similar or comparable to the purposes of this Act " ; and

(b) the words " relating to social security " shall be omitted.

(3) The words "relating to child benefit" shall be omitted from subsection (1) of section 15 of the Child Benefit Act 1975 (reciprocal agreements with countries outside the United Kingdom).

(4) Sections 14 and 15 of the Child Benefit Act 1975 (reciprocal arrangements with Northern Ireland and reciprocal agreements with countries outside the United Kingdom) shall have effect in relation to income support, family credit and housing benefit as they have effect in relation to child benefit, references in them to Part I of that Act being construed as including references to this Act.

Part VII — Miscellaneous, General and Supplementary

Miscellaneous

Pensioners' Christmas bonus

66

Rates of payments of statutory sick pay and provisions as to recovery

67

(1) The following subsections shall be inserted after subsection (1) of section 7 of the Social Security and Housing Benefits Act 1982 (rate of payment of statutory sick pay)—

(1A) The Secretary of State may by regulations— (a) substitute alternative provisions for subsection (1)(a) to (c) above ; and (b) make such consequential amendments of any provision contained in this Act as appear to him to be required. (1B) A statutory instrument containing (whether alone or with other provisions) regulations under subsection (1A) above shall not be made unless a draft of the instrument has been laid before Parliament and approved by a resolution of each House.

(2) The following paragraph shall be substituted for subsection (1A)(a) of section 9 of that Act (recovery by employers of amounts paid by way of statutory sick pay)—

(a) giving any employer who has made a payment of statutory sick pay a right, except in prescribed circumstances, to an amount, determined in such manner as may be prescribed— (i) by reference to secondary Class 1 contributions paid in respect of statutory sick pay; or (ii) by reference to the aggregate of secondary Class 1 contributions so paid and secondary Class 1 contributions paid in respect of statutory maternity pay;

Liability of Secretary of State to pay statutory sick pay in prescribed circumstances

68

The following subsections shall be added at the end of section 1 of the Social Security and Housing Benefits Act 1982—

(5) Circumstances may be prescribed in which, notwithstanding the foregoing provisions of this section, the liability to make payments of statutory sick pay is to be a liability of the Secretary of State. (6) Any sums paid under regulations made by virtue of subsection (5) above shall be paid out of the National Insurance Fund.

69

Section 92 of the Social Security Act 1975 (which relates to arrangements to forgo benefit in return for unabated sick pay) shall cease to have effect.

Child benefit in respect of children educated otherwise than at educational establishments

70

(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) Regulations purporting to be made under section 24(1) of that Act and made before the passing of this Act shall be treated as validly made.

Entitlement to mobility allowance-general

71

Entitlement of certain women to mobility allowance

72

In relation to women born after 6th June 1918 but before 21st December 1919 sections 22 and 65(1) of the Social Security Pensions Act 1975, paragraphs 47, 49 and 51 to 53 of Schedule 4 to that Act and section 3(3) of the Social Security Act 1979 shall be deemed to have come into force—

(a) for the purposes of the making of claims for, and the determination of claims and questions relating to, mobility allowance, on 29th March 1979 ; and

(b) for all other purposes, on 6th June 1979.

Application of provisions of Act to supplementary benefit etc.

73

National Insurance contributions

74

(1) The subsection set out in subsection (2) below shall be inserted in the Social Security Act 1975—

(a) in section 4 (Class 1 contributions) after subsection (6H), as subsection (6HH) ; and

(b) in section 123A (further power to alter certain contributions) after subsection (6), as subsection (6A).

(2) The subsection is—

Where the Secretary of State lays before Parliament a draft of an order under this section he shall lay with it a copy of a report by the Government Actuary on the effect which, in the Actuary's opinion, the making of such an order may be expected to have on the National Insurance Fund.

(3) In section 134 of that Act (appropriate employment protection allocation) the following subsections shall be inserted after subsection (5)—

(5A) Without prejudice to section 122(3) and (4) above, the Secretary of State may, with the consent of the Treasury, by order amend this section, in relation to any tax year beginning after the tax year 1986-87— (a) by substituting a different percentage for the percentage for the time being specified in paragraph (i) or (ii) of subsection (4) above or for each of the percentages specified in those paragraphs ; (b) by directing that there shall be no appropriate employment protection allocation; or (c) by directing that there shall be an appropriate employment protection allocation only in the case of primary Class 1 contributions or only in the case of secondary Class 1 contributions. (5B) At any time when an order under subsection (5A) above containing a direction under paragraph (b) of that subsection is in force, the Secretary of State may, with the consent of the Treasury, by order direct that there shall be an appropriate employment protection allocation of such percentage in the case of primary Class 1 contributions or secondary Class 1 contributions, or both, as may be specified in the order. (5C) At any time when an order under subsection (5A) above containing a direction under paragraph (c) of that subsection is in force, the Secretary of State may, with the consent of the Treasury, by order direct that there shall be an appropriate employment protection allocation of such percentage as may be specified in the order in the case of the description of contributions in whose case there is, by virtue of the direction, no such allocation. (5D) Any percentage specified as an allocation by an order under subsection (5B) or (5C) above shall be deemed to be inserted at the appropriate place in subsection (4) above and an order under subsection (5A)(a) above may accordingly be made in respect of it.

(4) In section 167(1)(b) of that Act (orders subject to affirmative procedure) after " 134 (4A) " there shall be inserted " (5A), (5B) or (5C) ".

(5) The powers to prescribe equivalents of a limit or bracket under section 4 of and paragraph 1(1C) of Schedule 1 to that Act include power to prescribe an amount not more than £1.00 more than the amount which is the arithmetical equivalent of the limit or bracket

(6) In section 1(2) of the Social Security Pensions Act 1975 (lower earnings limit) for " 49p" there shall be substituted " 99p ".

Earnings factors

75

Amendments relating to forfeiture of benefits

76

(1) The Forfeiture Act 1982 shall be amended as follows.

(2) The following subsections shall be inserted after subsection (1) of section 4 (Social Security Commissioner to determine whether forfeiture rule applies to social security benefits)—

(1A) Where a Commissioner determines that the forfeiture rule has precluded a person (in this section referred to as “the offender”) who has unlawfully killed another from receiving the whole or part of any such benefit or advantage, the Commissioner may make a decision under this subsection modifying the effect of that rule and may do so whether the unlawful killing occurred before or after the coming into force of this subsection. (1B) The Commissioner shall not make a decision under subsection (1A) above modifying the effect of the forfeiture rule in any case unless he is satisfied that, having regard to the conduct of the offender and of the deceased and to such other circumstances as appear to the Commissioner to be material, the justice of the case requires the effect of the rule to be so modified in that case. (1C) Subject to subsection (1D) below, a decision under subsection (1A) above may modify the effect of the forfeiture rule in either or both of the following ways— (a) so that it applies only in respect of a specified proportion of the benefit or advantage; (b) so that it applies in respect of the benefit or advantage only for a specified period of time. (1D) Such a decision may not modify the effect of the forfeiture rule so as to allow any person to receive the whole or any part of a benefit or advantage in respect of any period before the commencement of this subsection. (1E) If the Commissioner thinks it expedient to do so, he may direct that his decision shall apply to any future claim for a benefit or advantage under a relevant enactment, on which a question such as is mentioned in subsection (1) above arises by reason of the same unlawful killing. (1F) It is immaterial for the purposes of subsection (1E) above whether the claim is in respect of the same or a different benefit or advantage. (1G) For the purpose of obtaining a decision whether the forfeiture rule should be modified the Secretary of State may refer to a Commissioner for review any determination of a question such as is mentioned in subsection (1) above that was made before the commencement of subsections (1A) to (1F) above (whether by a Commissioner or not) and shall do so if the offender requests him to refer such a determination. (1H) Subsections (1A) to (1F) above shall have effect on a reference under subsection (1G) above as if in subsection (1A) the words “it has been determined” were substituted for the words “a Commissioner determines”.

(3) In subsection (2) of that section, after the words “that subsection” there shall be inserted the words “or any decision under subsection (1A) above”.

(4) In section 5 (exclusion of murderers) after the word “Act”, in the second place where it occurs, there shall be inserted the words “or in any decision made under section 4(1A) of this Act”.

Refreshments for school pupils

77

(1) The words “and may do so either on the premises or at any place other than the school premises where education is being provided” shall be inserted—

(a) after “refreshment” in subsection (1)(a) of section 22 of the Education Act 1980; and

(b) after “management” in subsection (1)(a) of section 53 of the Education (Scotland) Act 1980.

(2) The following subsections shall be substituted for subsections (2) and (3) of each of those sections—

(2) Subject to subsection (3) below, an authority must charge for anything provided by them under subsection (1)(a) above and must charge every pupil the same price for the same quantity of the same item. (3) In relation to a pupil whose parents are in receipt of income support or who is himself in receipt of it an authority shall so exercise the power conferred by subsection (1)(a) above as to ensure that such provision is made for him in the middle of the day as appears to the authority to be requisite and shall make that provision for him free of charge.

Travelling expenses

78

General

Crown employment

79

Application of Parts I and V to special cases

80

Northern Ireland

Orders in Council making corresponding provision for Northern Ireland

81

82

The enactments relating to social security in Northern Ireland specified in Schedule 9 to this Act shall have effect subject to the amendments there specified.

Supplementary

Orders and regulations (general provisions)

83

(1) Section 61B(1) to (4) of the Social Security Pensions Act 1975 (extent of powers) shall apply to powers conferred by this Act to make regulations or orders as they apply to any power to make regulations or orders conferred by that Act but as if for references to that Act there were substituted references to this Act.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) A statutory instrument—

(a) which contains (whether alone or with other provisions) orders or regulations under this Act, other than orders under section 88 below, and

(b) which is not subject to any requirement that a draft of the instrument be laid before and approved by a resolution of each House of Parliament,

shall be subject to annulment in pursuance of a resolution of either House of Parliment.

(5) An order under section . . . 85 below shall not be made without the consent of the Treasury.

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

General interpretation

84

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

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ;

. . .

“the benefit Acts” means—

(a) the Social Security Act 1973;

(b) the Social Security Acts 1975 to 1991;

(d) the Child Benefit Act 1975;

. . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ;

. . .

. . .

. . .—

(a) . . .

(b) . . .—

(i) . . .

(ii) . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ;

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ;

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ;

“Housing Revenue Account rebate”, in relation to a local authority in England and Wales, means a rent rebate for a tenant of a Housing Revenue Account dwelling of that authority;

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ;

. . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ;

. . .

“modifications” includes additions, omissions and amendments, and related expressions shall be construed accordingly;

. . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ;

. . .

. . .

“prescribed” means specified in or determined in accordance with regulations;

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ;

. . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ;

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ;

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ;

“regulations” means regulations made by the Secretary of State under this Act;

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ;

. . .

. . .]

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ;

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ;

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ;

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) In this Act—

(a) references to the United Kingdom include references to the territorial waters of the United Kingdom; and

(b) references to Great Britain include references to the territorial waters of the United Kingdom adjacent to Great Britain.

Financial provision

85

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

(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(d) any sums falling to be paid by the Secretary of State under or by virtue of this Act by way of travelling expenses;

(e) any other expenses of the Secretary of State attributable to this Act;

(f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(g) any increase attributable to this Act in the sums payable out of money provided by Parliament under any other Act.

(2) Any increase attributable to this Act in the sums to be charged on and paid out of the Consolidated Fund under any other Act shall be charged on and paid out of that Fund.

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) Subject to subsections (6) . . . below, so far as it relates to payments out of money provided by Parliament, any sum recovered by the Secretary of State under or by virtue of this Act shall be paid into the Consolidated Fund.

(6) So far as any such sum relates to a payment out of the National Insurance Fund, it shall be paid into that Fund.

(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(13) In this section “Act” includes an Act of the Parliament of Northern Ireland.

Minor and consequential amendments and repeals

86

(1) The enactments mentioned in Schedule 10 to this Act shall have effect with the amendments there specified.

(2) The enactments mentioned in Schedule 11 to this Act (which include enactments already obsolete or unnecessary) are repealed to the extent specified in the third column of that Schedule.

Extent

87

(1) The following provisions of this Act extend to Northern Ireland—

(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) section 61 above;

(d) section 81 above;

(e) sections 83 to 86 above;

(f) this section;

(g) sections 88 to 90 below.

(2) Section 82 above (with Schedule 9) extends to Northern Ireland only.

(3) Sections 25 and 30(6) and (10) above do not extend to Scotland.

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

(5) Except as provided by this section, this Act extends to England and Wales and Scotland, but not to Northern Ireland.

Commencement

88

(1) Subject to the following provisions of this section, the provisions of this Act shall come into force on such day as the Secretary of State may by order made by statutory instrument appoint, and different days may be appointed in pursuance of this section for different provisions or different purposes of the same provision.

(2) In relation to section 52 above (including Schedule 5) and section 82 above (including Schedule 9) for the reference to the Secretary of State in subsection (1) above there shall be substituted a reference to the Lord Chancellor and the Secretary of State, acting jointly.

(3) Without prejudice to the generality of subsection (1) above, different days may be appointed under that subsection for the purposes of Part III of this Act in relation to different descriptions of persons, and those descriptions of persons may be determined by any criteria that appear to the Secretary of State to be appropriate.

(4) If an order under subsection (1) above brings paragraph 8 of Schedule 3 to this Act into force on the same day as section 36 above, the former shall be deemed to have come into force immediately before the latter.

(5) The following provisions of this Act—

section 30(4), (8), (9) and (10);

section 37;

section 38(4);

section 45;

section 61;

sections 63 and 64;

section 70;

section 71(4) and (5);

section 72;

section 74;

section 76;

section 81;

section 83 to 85;

section 86(1) so far as relating to paragraphs 2, 22, 23(3), 26(1) and (2), 27, 30(b), (c) and (d)(ii), 82, 86, 94(a), 98, 99, 106 and 107 of Schedule 10;

section 86(2) so far as relating—

(a) to section 37(3) of the Social Security Act 1975 and the reference to paragraph (b) of that subsection in section 22(2) of the Social Security (Miscellaneous Provisions) Act 1977;

(b) to section 141(2) of the Social Security Act 1975;

(d) to section 10 of the Social Security Act 1980; and

(e) to section 29 of the Social Security and Housing Benefits Act 1982;

section 87;

this section; and

sections 89 and 90;

shall come into force on the day this Act is passed.

Transitional

89

(1) Regulations may make such transitional and consequential provision (including provision modifying any enactment contained in this or any other Act) or saving as the Secretary of State considers necessary or expedient in preparation for or in connection with the coming into force of any provision of this Act or the operation of any enactment which is repealed or amended by a provision of this Act during any period when the repeal or amendment is not wholly in force.

(1A) Without prejudice to any other powers conferred on him, the Secretary of State—

(a) may, for the purpose of making provision with respect to persons falling within subsection (IB) below, modify or revoke any regulations made under this section if he considers it necessary or expedient to do so in consequence of, or otherwise in connection with, provisions of Acts, schemes, arrangements or other instruments coming into force after the passing of this Act; and

(b) may, for the purpose of consolidation, revoke and re-enact, with any modifications which he considers necessary or desirable, any regulations under this section.

(1B) The persons referred to in subsection (IA)(a) above are any persons—

(a) to whom regulations under subsection (1) above apply; or

(b) to whom regulations made under Part 11 of this Act relating to income support applied at any time before the passing of the Social Security Act 1989.

(2) The reference to regulations in subsection (1) above includes a reference—

(a) to regulations made by the Lord Chancellor; and

(b) to regulations made by the Lord Chancellor and the Secretary of State, acting jointly.

Citation

90

(1) This Act may be cited as the Social Security Act 1986.

(2) This Act, except section 77 above, may be cited together with the Social Security Acts 1975 to 1985 as the Social Security Acts 1975 to 1986.

SCHEDULE 1

Interpretation

1

In this Schedule—

“member” means a member of a scheme;

“rules” means the rules of a scheme; and

“scheme” means a personal pension scheme.

Requirements: general

2

The Secretary of State may prescribe descriptions of persons by whom or bodies by which a scheme may be established and, if he does so, a scheme may only be established by a person or body of a prescribed description.

3

A scheme must comply with such requirements as may be prescribed as regards the investment of its resources and with any direction of the Occupational Pensions Board that—

(a) no part, or no more than a specified proportion, of the scheme’s resources shall be invested in investments of a specified class or description;

(b) there shall be realised, before the end of a specified period, the whole or a specified proportion of investments of a specified class or description forming part of the scheme’s resources when the direction is given.

4

A scheme must comply with such requirements as may be prescribed as regards the part—

(a) of any payment or payments that are made to the scheme by or on behalf of a member;

(b) of any income or capital gain arising from the investment of payments such as are mentioned in sub-paragraph (a) above; or

that may be used—

(i) to defray the administrative expenses of the scheme;

(ii) to pay commission; or

(iii) in any other way which does not result in the provision of benefits for or in respect of members.

5

(1) Subject to sub-paragraph (2) below, all minimum contributions which are paid to a scheme in respect of one of its members must be applied so as to provide money purchase benefits for or in respect of that member, except so far as they are used—

(a) to defray the administrative expenses of the scheme; or

(b) to pay commission.

(2) If regulations are made under paragraph 4 above, minimum contributions may be used in any way which the regulations permit, but not in any way not so permitted except to provide money purchase benefits for or in respect of the member.

6

A scheme must satisfy such other requirements as may be prescribed.

Requirements: protected rights

7

(1) Unless the rules make provision such as is mentioned in sub-paragraph (2) below, the protected rights of a member are his rights to money purchase benefits under the scheme.

(2) Rules may provide that a member’s protected rights are his rights under the scheme which derive from any payment of minimum contributions to the scheme, together with any rights of his to money purchase benefits which derive from protected rights under another personal pension scheme or protected rights (within the meaning of the Social Security Pensions Act 1975) under an occupational pension scheme which have been the subject of a transfer payment and such other rights as may be prescribed.

(3) Where rules make such provision as is mentioned in sub-paragraph (2) above, they shall also make provision for the identification of the protected rights.

(4) The value of protected rights . . . ;

(a) shall in the case of any such protected rights as are mentioned in sub-paragraph (2) above be calculated in a manner no less favourable than that in which the value of any other rights of the member to money purchase benefits under the scheme are calculated;

(b) subject to that, shall be calculated and verified in such manner as may be prescribed.

(5) The power to make regulations conferred by sub-paragraph (4) above includes power to provide that protected rights . . . are to be calculated and verified in such manner as may be approved in particular cases—

(a) by prescribed persons; or

(b) by persons with prescribed professional qualifications or experience; or

and power to provide that they shall be calculated and verified in accordance with guidance prepared by a prescribed body.

8

Rules must provide for effect to be given in a manner permitted by paragraph 9 below to the protected rights of every member and must not provide for any part of any member's protected rights to be discharged in any other way.

9

(1) Effect may be given to protected rights—

(a) by the provision by the scheme of a pension which—

(i) complies with the requirements of sub-paragraph (7) below; and

(ii) satisfies such conditions as may be prescribed; or

(b) in such circumstances and subject to such conditions as may be prescribed, by the making of a transfer payment—

(i) to another personal pension scheme; or

(ii) to an occupational pension scheme,

where the scheme to which the payment is made satisfies such requirements as may be prescribed.

(2) Subject to sub-paragraphs (4) and (6) below if—

(a) the rules of the scheme do not provide for a pension; or

(b) the member so elects,

then, except to the extent that effect is given to protected rights in accordance with sub-paragraph (3) below, effect shall be given to those rights by the purchase by the scheme of an annuity which—

(i) complies with the requirements of sub-paragraphs (7) and (8) below; and

(ii) satisfies such conditions as may be prescribed.

(2) If—

(a) the rules of the scheme do not provide for a pension;or

(b) the member so elects,

effect may be given to protected rights by the purchase by the scheme of an annuity which—

(i) complies with the requirementrs of sub=paragraph (7) and (8) below; and

(ii) satisfies such conditions as may be prescribed.

(3) Effect may be given to protected rights by the provision of a lump sum if—

(a) the lump sum is payable on a date which is either the date on which the member attains pensionable age or such later date as has been agreed by him; and

(b) the annual rate of a pension under sub-paragraph (1) above or an annuity under sub-paragraph (2) above giving effect to the protected rights and commencing on the date on which the lump sum is payable would not exceed the prescribed amount; and

(d) the amount of the lump sum is calculated in a manner satisfactory to the Occupational Pensions Board by reference to the amount of the pension or annuity.

(4) If the member has died without effect being given to protected rights under sub-paragraph (1), (2) or (3) above, effect may be given to them in such manner as may be prescribed.

(5) No transaction is to be taken to give effect to protected rights unless it falls within this paragraph.

(6) Effect need not be given to protected rights if they have been extinguished by the payment of a personal pension protected rights premium.

(7) A pension or annuity complies with this sub-paragraph if—

(a) it commences—

(i) on the date on which the member attains pensionable age; or

(ii) on such later date as has been agreed by him,

and continues until the date of his death;

(b) in a case where the member dies while it is payable to him and is survived by a widow or widower—

(i) it is payable to the widow or widower in prescribed circumstances and for the prescribed period at an annual rate which at any given time is one-half of the rate at which it would have been payable to the member if the member had been living at that time; or

(ii) where that annual rate would not exceed a prescribed amount and the circumstances are such as may be prescribed, a lump sum calculated in a manner satisfactory to the Occupational Pensions Board is provided in lieu of it.

(7A) As respects the period of 5 years beginning with the commencement of the pension or annuity referred to in sub-paragraph (7) above, that sub-paragraph shall have effect in relation to that pension or annuity as if the words “at least” were inserted immediately before the words “one-half” in paragraph (b)(i).

(8) An annuity complies with the requirements of this sub-paragraph if it is provided by an insurance company which—

(a) satisfies prescribed conditions;

(b) complies with such conditions as may be prescribed as to the calculation of annuities provided by it and as to the description of persons by or for whom they may be purchased; and

(9) A member is only to be taken to have chosen an insurance company if he gives notice of his choice to the trustees or managers of the scheme within the prescribed period and in such manner and form as may be prescribed, and with any such supporting evidence as may be prescribed; and, if he does not do so, the trustees or managers may themselves choose the insurance company instead.

10

The Occupational Pensions Board must be satisfied that a scheme complies with any such requirements as may be prescribed for meeting the whole or a prescribed part of any liability in respect of protected rights under the scheme which the scheme is unable to meet from its own resources—

(a) by reason of the commission by any person of a criminal offence;

(b) in such other circumstances as may be prescribed.

11

Rules must not allow, except in such circumstances as may be prescribed, the suspension or forfeiture of a member’s protected rights or of payments giving effect to them.

General

12

Nothing in this Schedule shall be taken to prejudice any requirements with which a scheme must comply if it is to qualify for tax-exemption or tax-approval.

SCHEDULE 2

1

The Social Security Pensions Act 1975 shall be amended as follows.

2

In subsection (1) of section 26 (contracting-out of full contributions and benefits) after the word “provides” there shall be inserted the words “or falls to be treated as providing”.

3

In section 29 (contracted-out rates of benefit) the following subsections shall be inserted after subsection (2)—

(2A) Subject to subsection (2B) below, where for any period minimum payments have been made in respect of an earner to an occupational pension scheme which, in relation to the earner’s employment, is a money purchase contracted-out scheme, then, for the purposes of this section and sections 16(2B), 28(7A) and 59(1A) of the principal Act— (a) the earner shall be treated, as from the date on which he reaches pensionable age, as if he were entitled to a guaranteed minimum pension at a prescribed weekly rate arising from that period in that employment; and (b) in prescribed circumstances, in relation to any widow or widower of the earner— (i) if the earner died after reaching pensionable age, any widow or widower of the earner shall be treated as entitled to a guaranteed minimum pension at a rate equal to one-half of the rate prescribed under paragraph (a) above; and (ii) if the earner died before reaching pensionable age, any widow or widower of the earner shall be treated as entitled to a guaranteed minimum pension at a prescribed weekly rate arising from that period. (2B) Where the earner is a married woman or widow, subsection (2A) above shall not have effect in relation to any period during which an election that her liability in respect of primary Class 1 contributions shall be a liability to contribute at a reduced rate is operative. (2C) The power to prescribe a rate conferred by subsection (2A)(a) above includes power to prescribe a nil rate.

4

In section 30 (contracted-out employment)—

(a) in subsection (1)(a), after the word “scheme” there shall be inserted the words “or his employer makes minimum payments in respect of the earner’s employment to a money purchase contracted-out scheme”;

(b) the following subsections shall be inserted after subsection (1)—

(1A) The minimum payment in respect of an earner for any tax week shall be the rebate percentage of so much of the earnings paid to or for the benefit of the earner as exceeds the lower earnings limit for the tax week but does not exceed the upper earnings limit for it; and in this subsection “rebate percentage” means the percentage arrived at by adding— (a) the percentage by which for the time being under section 27(2) above the contracted-out percentage of primary Class 1 contributions is less than the normal percentage; and (b) the percentage by which for the time being under that subsection the contracted-out percentage of secondary Class 1 contributions is less than the normal percentage. (1B) The references to the upper and lower earnings limits in subsection (1A) above are references, in the case of an earner who is paid otherwise than weekly, to their prescribed equivalents under section 4(2) and (6) of the principal Act. (1C) Regulations may make provision— (a) for the manner in which, and time at which or period within which, minimum payments are to be made; (b) for the recovery by employers of amounts in respect of the whole or part of minimum payments by deduction from earnings; (c) for calculating the amounts payable according to a scale prepared from time to time by the Secretary of State or otherwise adjusting them so as to avoid fractional amounts or otherwise facilitate computation; (d) for requiring that the liability in respect of a payment made in a tax week, in so far as the liability depends on any conditions as to a person’s age on retirement, shall be determined as at the beginning of the week or as at the end of it; (e) for securing that liability is not avoided or reduced by a person following in the payment of earnings any practice which is abnormal for the employment in respect of which the earnings are paid; (f) without prejudice to sub-paragraph (e) above, for enabling the Secretary of State, where he is satisfied as to the existence of any practice in respect of the payment of earnings whereby the incidence of minimum payments is avoided or reduced by means of irregular or unequal payments of earnings, to give directions for securing that minimum payments are payable as if that practice were not followed; (g) for the intervals at which, for the purposes of minimum payments, payments of earnings are to be treated as made; and (h) for this section to have effect, in prescribed cases, as if for any reference to a tax week there were substituted a reference to a prescribed period.

5

In section 32 (contracted-out schemes)—

(a) in subsection (2), the words “or it satisfies subsection (2A) below.” shall be inserted after paragraph (b) (but not as part of it);

(b) the following subsections shall be inserted after that subsection—

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Social Security Act 1986

Part I — Pensions

Personal pension schemes

Minimum contributions to personal pension schemes

1

Appropriate schemes

2

Amount of minimum contributions

3

Effect of payment of minimum contributions on rate of certain benefits

4

Personal pension protected rights premium

5

Occupational pension schemes

Money purchase contracted-out schemes

6

Schemes becoming contracted-out between 1986 and 1993

7

Abolition of requirement relating to requisite benefits

8

Guaranteed minimum pensions

9

Short-service benefit: qualifying service

10

Auditors

11

Provisions applying to personal and occupational pension schemes

Voluntary contributions

12

Regulations as to form and content of advertisements

13

Information

14

Terms of contracts of service or schemes restricting choice to be void

15

Actuarial tables

16

General power to modify statutory provisions

17

State earnings-related pension scheme

Additional pensions

18

Additional pensions-supplementary

19

Part II — Income-Related Benefits

General

Income-related benefits

20

Amount etc.

21

Calculation

22

Income support

Trade disputes

23

Recovery of expenditure on benefit from person liable for maintenance

24

Affiliation orders

25

Failure to maintain-general

26

Prevention of duplication of payments

27

Housing benefit

Arrangements for housing benefit

28

Adjudication and overpayments

29

Housing benefit finance

30

Information

31

Part III — The Social Fund

The social fund and social fund officers

32

Awards by social fund officers

33

Reviews

34

The social fund Commissioner