Social Security Act 1989

Contributions

Amendments relating to primary Class 1 contributions

1–3

Repayment of contributions where earnings become repayable

2

In Schedule 1 to the principal Act (contributions: supplementary provisions) in paragraph 6(1) (matters for which regulations may provide) after paragraph (g) there shall be inserted—

(gg) for the repayment, in prescribed cases, of the whole or a prescribed part of any contributions paid by reference to earnings which have become repayable;

.

Abolition of Treasury supplement to contributions

3

No payments by way of supplement, or adjustment of supplement, under section 1(5) of the principal Act shall be made after 31st March 1989 in respect of any contributions whether paid before, on or after that date.

Earnings factors

4

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

• (5) The Earnings Factor Regulations, as in force for the purpose of determining earnings factors for the tax years beginning with 6th April 1985 and 6th April 1986, shall have effect, and be taken always to have had effect, with the substitution in paragraph 3 of Schedule 1 (which, as amended by regulation 2(3) of the Amending Regulations, provided in certain cases for the aggregation of separate contributions) for the words from “where the values” to “those sums” of the words—

where, in the case of any two or more separate sums— (a) the values to be accorded to F (apart from this paragraph) would fall to be ascertained under the same paragraph of paragraph 2(e) above, and (b) the values to be so accorded to G would fall to be ascertained under the same paragraph of paragraph 2(f) above, those sums

.

• (6) In subsection (5) above—

• “the Earnings Factor Regulations” means the Social Security (Earnings Factor) Regulations 1979; and

• “the Amending Regulations” means the Social Security (Earnings Factor) Amendment Regulations 1985.

• (7) The amendment by subsection (5) above of a provision contained in regulations shall not be taken to have prejudiced any power to make further regulations revoking or amending that provision, whether in relation to the tax years there mentioned or otherwise.

• (8) The Social Security (Earnings Factor) Amendment Regulations 1988 shall have effect, and be deemed always to have had effect, as if the amendment made by subsection (3) above had come into force before the making of those regulations.

Liability to maintain children

Liability of parents to maintain children under the age of nineteen in respect of whom income support is paid

5

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

• (5) In section 17(2)(a) of the Merchant Shipping Act 1970 (seaman’s dependants to consists of his spouse and certain persons under the age of sixteen) for the word “sixteen” there should be substituted the word “ nineteen”.

Benefits under the principal Act

Benefits for women widowed before 11th April 1988

6

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

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

• (3) The Social Security Benefit (Dependency) Amendment Regulations 1989 shall have effect, and be taken always to have had effect, with the insertion after regulation 3 (which made amendments concerning widowed mother’s allowance to regulation 4B of the Social Security Benefit (Dependency) Regulations 1977) of the following—

(3A) The first amendment made by regulation 3 above shall not have effect in relation to a widow whose late husband died before 11th April 1988.

• (4) In any case where—

• (a) a claim for a widow’s pension or a widowed mother’s allowance is made, or treated as made, before the passing of this Act, and

• (b) the Secretary of State has made a payment to or for the claimant on the ground that if the claim had been received immediately after its passing she would have been entitled to that pension or allowance, or entitled to it at a higher rate, for the period in respect of which the payment is made,

the payment so made shall be treated as a payment of that pension or allowance; and, if and to the extent that an award of the pension or allowance, or an award at a higher rate, is made for the period in respect of which the payment was made, the payment shall be treated as made in accordance with that award.

• (5) Where, apart from section 165A of the principal Act (making of claim a condition of entitlement), a widow falling within subsection (1) above would be entitled to a widow’s pension for any period beginning on or after 11th April 1988, then, notwithstanding anything in that section, she shall be entitled to that pension for that period if she has made a claim for it before the end of the period of twelve months beginning with the passing of this Act.

• (6) Where a widow’s late husband died on or after 7th October 1987 and before 11th April 1988 and, apart from section 165A of the principal Act, she would have become entitled to a widow’s allowance on his death, then if either—

• (a) she was over the age of 40 but under the age of 55 at the time of his death, or

• (b) she would, apart from that section, have been entitled to a widowed mother’s allowance on the cessation of her entitlement to the widow’s allowance,

she shall, notwithstanding anything in that section, be entitled to the widow’s allowance (and, accordingly, in a case falling within paragraph (b) above, to the widowed mother’s allowance) if she has made a claim, or is treated as having made a claim, for it before the end of the period of twelve months beginning with the passing of this Act.

• (7) Where in consequence of any of the amending provisions an adjudicating authority has decided before the passing of this Act that a widow whose husband died before 11th April 1988 either—

• (a) is not entitled to a benefit under section 25 or 26 of the principal Act, or

• (b) is entitled to such a benefit at a particular rate,

an adjudication officer may review that decision, notwithstanding anything in section 25 of the Social Security Administration Act 1992.

• (8) In any case where—

• (a) it is determined on such a review that the widow in question was entitled to a benefit under section 25 or 26 of the principal Act, or was entitled to such a benefit at a higher rate, and

• (b) the application for the review was made before the end of the period of twelve months beginning with the passing of this Act,

the decision on the review may take effect on 11th April 1988 or any later date, notwithstanding any provision of any Act or instrument restricting the payment of any benefit or increase of benefit to which a person would otherwise be entitled by reason of a review in respect of any period before the review.

• (9) Section 28 of the Social Security Administration Act 1992(appeals from reviews) shall apply in relation to a review under this section as it applies in relation to a review Section 25 of that Act.

• (10) In this section—

• “adjudicating authority” means—

• (a) an adjudication officer;

• (b) a social security appeal tribunal;

• (c) a Commissioner; and

• “the amending provisions” are—

• (a) section 36(3) of the 1986 Act; and

• (b) regulation 2(6) of the Social Security (Widow’s Benefit and Retirement Pensions) Amendment Regulations 1987 (deemed entitlement to child allowance for purposes of widowed mother’s allowance etc).

• (11) The amendment by this section of provisions contained in regulations shall not be taken to have prejudiced any power to make further regulations revoking or amending those provisions.

• (12) Nothing in this section shall be taken to prejudice section 16 or 17 of the Interpretation Act 1978 (effect of repeals, substitutions etc).

Abolition of earnings rule etc

7

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

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

Mobility allowance: increase of age limit to 80 years

8

Extension to personal pensions of occupational pension provisions relating to the abatement of unemployment benefit and the meaning of “earnings”

9–19

Unemployment benefit: requirement to seek employment actively

10

• (1) Section 17 of the principal Act (determination of days for which benefit is payable) shall have effect with the amendments made by subsections (2) to (4) below, which are made for the purpose of requiring a claimant for unemployment benefit to show that he is actively seeking employment.

• (2) In subsection (1)(a)(i) (days not to be treated as days of unemployment unless certain conditions are fulfilled) after the words “available to be employed in employed earner’s employment” there shall be inserted the words “and that day falls in a week in which he is, or is deemed in accordance with regulations to be, actively seeking such employment”.

• (3) In subsection (2) (regulations) after paragraph (a) there shall be inserted—

(aa) make provision with respect to— (i) steps which a person is required to take in any week if he is to be regarded as actively seeking employed earner’s employment in that week; (ii) the meaning of “week” in subsection (1)(a)(i) above or in any other provision relating to a person’s actively seeking employed earner’s employment;

.

• (4) After subsection (2A) of that section (determination of actual availability for employment on review of determination of deemed availability) there shall be inserted—

(2B) Where it has been determined that a person is to be deemed in accordance with regulations to be actively seeking employed earner’s employment in any week, the question of his actually doing so in that week may be subsequently determined on a review of the determination as to his deemed doing so.

• (5) In section 104 of that Act (review of decisions), in subsection (1)(d), after the words “section 17(2A)” there shall be inserted the words “or (2B)”.

Requalification for unemployment benefit

11

In section 18 of the principal Act, for subsection (2) (requalification for unemployment benefit) there shall be substituted—

(2) A person who has exhausted his right to unemployment benefit requalifies for it on the next occasion when, having again been in employment as an employed earner, he makes a claim for that benefit in circumstances such that the requalification conditions are satisfied with respect to each of at least 13 weeks in the period of 26 weeks immediately preceding— (a) the day on which the claim is made, or (b) if he would not requalify by reference to that day, his first day of unemployment since he was last in employment as an employed earner. (2A) For the purposes of subsection (2) above the requalification conditions are satisfied with respect to any week if— (a) the person in question has been in employment as an employed earner in that week; (b) he has worked in such employment for at least 16 hours in that week; and (c) the week begins after the last day for which he was entitled to unemployment benefit. (2B) Subsection (2) above shall have effect in prescribed cases with the substitution for the reference to 26 weeks of a reference to such longer period as may be prescribed.

Disqualification for unemployment benefit

12

• (1) In subsection (1) of section 20 of the principal Act (disqualifications etc)—

• (a) at the beginning, there shall be inserted the words “Subject to section 20A below”;

• (b) in paragraphs (b), (c) and (d), for the words “suitable employment” there shall be substituted the word “employment”;

• (c) in paragraphs (c) and (g), immediately before the word “neglected” there shall be inserted the words “without good cause”.

• (2) In subsection (1A) of that section the words “longer or” shall cease to have effect.

• (3) For subsection (4) of that section (meaning of “suitable employment”) there shall be substituted—

(4) For the purposes of subsection (1) above, regulations may— (a) prescribe matters which are or are not to be taken into account in determining whether a person does or does not have good cause for any act or omission; or (b) prescribe circumstances in which a person is or is not to be regarded as having or not having good cause for any act or omission; but, subject to any such regulations, in determining for the purposes of that subsection whether a person does or does not have good cause for any act or omission, there shall be disregarded any matter relating to the level of remuneration in the employment in question.

• (4) After that section there shall be inserted—

(20A) (1) Nothing in section 20 above or in regulations under that section shall be taken to disqualify a person for receiving unemployment benefit by reason only of his refusal— (a) to seek or accept employment in a situation which is vacant in consequence of a stoppage of work due to a trade dispute; or (b) to seek or accept during the permitted period any employment other than employment in his usual occupation at a level of remuneration not lower than he is accustomed to receive. (2) Regulations shall make provision for the purpose of enabling any person of a prescribed description to accept any employed earner’s employment without being disqualified under— (a) subsection (1)(a) of section 20 above, so far as it relates to a person who voluntarily leaves such employment without just cause, or (b) subsection (1)(c) of that section, should he leave that employment voluntarily and without just cause at any time after the end of the sixth week, but not later than the end of the twelfth week, of a trial period. (3) In this section— - “permitted period”, in relation to any person, means such period, whether expired or not, as may be determined in accordance with regulations by an adjudication officer on the submission of the question whether that person is disqualified under section 20 above for receiving unemployment benefit; and any such regulations may prescribe— the day on which any such period shall be regarded as having commenced in any case; the shortest and longest periods which may be so determined in any case; and criteria to which the adjudication officer is to have regard in determining the permitted period in any case; and - “trial period” means a period of twelve weeks beginning with the commencement of the employment in question; but regulations may— make provision for the purpose of determining the day on which a person’s employment is to be regarded as commencing; and provide that, for the purpose of determining the time at which the sixth or twelfth week of a trial period ends, prescribed periods may be disregarded in prescribed circumstances.

• (5) In Schedule 20 to that Act (glossary of expressions) in the second column of the entry relating to “employment”, the following paragraph shall be added at the end—

Regulations may make provision modifying the meaning of “employment” for the purposes of any provision of this Act.

• (6) Nothing in subsection (2) above shall affect the continuing operation of the Unemployment Benefit (Disqualification Period) Order 1988 (which substituted the period of 26 weeks for the period of 13 weeks in section 20(1) of the principal Act).

Income-related benefits

Income support and unemployment

13

• (1) In section 20 of the 1986 Act (income-related benefits) in subsection (3)(d)(i) (availability for employment as a condition for income support) after the words “available for” there shall be inserted the words “, and actively seeking,”.

• (2) In subsection (12) of that section, for paragraph (d) (regulations defining availability for employment etc) there shall be substituted—

(d) as to circumstances in which a person is or is not to be treated as— (i) engaged or normally engaged in remunerative work; (ii) available for employment; or (iii) actively seeking employment;

.

Housing benefit to take the form of payments or reductions

14

• (1) In section 28 of the 1986 Act (arrangements for housing benefit) after subsection (1) there shall be inserted—

(1A) The rebates and allowances referred to in subsection (1) above may take any of the following forms, that is to say— (a) a payment or payments by the authority to the person entitled to the benefit; (b) a reduction in the amount of any payments which that person is liable to make to the authority by way of rent or rates; or (c) such a payment or payments and such a reduction; and in any enactment or instrument (whenever passed or made) “pay”, in relation to housing benefit, includes discharge in any of those forms.

• (2) Subsection (1) above shall be deemed to have come into force on 1st April 1988.

Housing benefit subsidy

15

• (1) In section 30 of the 1986 Act, in subsection (2) (computation etc of housing benefit subsidy) the words following paragraph (b), other than those added by the Local Government and Housing Act 1989, shall cease to have effect and after that subsection there shall be inserted—

(2A) In relation to rent allowance subsidy, the Secretary of State— (a) may specify any such additions and deductions as are referred to in paragraph (a) of subsection (2) above, and (b) may exercise his discretion as to what is unreasonable for the purposes of paragraph (b) of that subsection, by reference to determinations made by rent officers in exercise of functions conferred on them under section 121 of the Housing Act 1988 or section 70 of the Housing (Scotland) Act 1988 (“the Housing Act functions”). (2B) The Secretary of State may by regulations require a local authority in any prescribed case to apply to a rent officer for a determination to be made in pursuance of the Housing Act functions and any such authority shall comply with prescribed requirements as to the time for making such an application. (2C) Where a local authority would have been required to apply to a rent officer for a determination under the Housing Act functions in a pre-commencement case, had the first regulations under subsection (2B) above come into force on 1st April 1989, regulations may make provision— (a) requiring the authority in prescribed circumstances to apply within a prescribed period to the rent officer for that determination to be made; and (b) requiring the rent officer in prescribed circumstances to make that determination on prescribed assumptions; and in this subsection “pre-commencement case” means any case which arises before the date on which the first regulations under subsection (2B) above in fact come into force.

• (2) For subsection (8) of that section (conditions for payment of subsidy) there shall be substituted the following—

(8) Subsidy under this section shall be payable by the Secretary of State at such time and in such manner as the Treasury may direct. (8A) Subsidy shall not be payable to an authority until either— (a) they have made a claim for it in such form as the Secretary of State may determine; or (b) if they have not made such a claim, the amount of subsidy payable to them (apart from subsection (8F) below) has been estimated under subsection (8C) below. (8B) The Secretary of State may withhold from an authority so much of any subsidy under this section as he thinks fit until either— (a) the authority has supplied him with prescribed particulars relating to their claim for subsidy and complied with prescribed conditions as to records, certificates, audit or otherwise; or (b) he is satisfied that there is a good reason for the authority’s failure to supply those particulars or comply with those conditions. (8C) If an authority has not— (a) made a claim for subsidy, (b) supplied the prescribed particulars referred to in paragraph (a) of subsection (8B) above, or (c) complied with the prescribed conditions referred to in that paragraph, within the prescribed period, then the Secretary of State may estimate the amount of subsidy payable to them (apart from subsection (8F) below) and may employ for that purpose such criteria as he considers relevant. (8D) If the Secretary of State considers it reasonable to do so in any particular case, he may give the authority in question written notice extending any of the periods prescribed under subsection (8C) above for the purposes of paragraph (a), (b) or (c) of that subsection, as the case may be. (8E) If an authority fails to make a claim for subsidy within such period as the Secretary of State considers reasonable, he may withhold from them such part of the subsidy as he thinks fit for so long as he thinks fit. (8F) Where the amount of subsidy paid to an authority for any year is found to be incorrect, the amount payable to them for any subsequent year may be adjusted for the purpose of rectifying that mistake in whole or in part.

Expenses of Secretary of State in making transitional payments relating to income support and housing benefit

16

• (1) Any expenses of the Secretary of State in making payments to persons falling within subsection (2) or (3) below may be paid out of money provided by Parliament.

• (2) A person falls within this subsection if—

• (a) he was entitled to supplementary benefit immediately before 11th April 1988, but

• (b) he did not become entitled to income support in respect of the week beginning with that day.

• (3) A person falls within this subsection if he was entitled to any one or more of the former housing-related benefits in respect of a qualifying week but either—

• (a) he did not become entitled to housing benefit under Part II of the 1986 Act in respect of the commencement week, or

• (b) the amount of any such housing benefit to which he became entitled in respect of that week was less than the amount of the former housing-related benefits to which he had been entitled in respect of the qualifying week.

• (4) In this section—

• “commencement day” means the day on which the new provisions came into force in the case of the person in question (1st or 4th April 1988, according to the circumstances);

• “commencement week”, in relation to any person, means the week beginning with the commencement day in his case;

• “the former housing-related benefits” means— rent rebates, rate rebates and rent allowances, within the meaning of Part II of the 1982 Act; and housing benefit supplement;

• “the new provisions” means the following provisions of Part II of the 1986 Act, so far as relating to housing benefit, that is to say, sections 20 to 22, 28 and 29;

• “qualifying week”, in relation to any person, means any week beginning on or after 21st March 1988 and ending before the commencement day in his case;

• “week” means a period of seven days.

• (5) For the purposes of this section—

• (a) a person shall be regarded as having been entitled to housing benefit supplement in respect of a week if an amount was applicable in respect of him under regulation 19 of the Supplementary Benefit (Requirements) Regulations 1983 in respect of that week; and

• (b) the amount of housing benefit supplement to which he was entitled in respect of that week shall be taken to be an amount equal to the amount so applicable.

Up-rating

Rectification of mistakes in up-rating orders

17

• (1) After section 63 of the 1986 Act (annual review of certain sums) there shall be inserted the following—

(63A) (1) If the Secretary of State is satisfied that a mistake (whether in computation or otherwise) has occurred in the preparation of the previous order under section 63 above, he may by order vary the amount of any one or more of the sums specified in an enactment mentioned in subsection (1)(a) of that section by increasing or reducing it to the level at which it would have stood had the mistake not occurred. (2) Where the amount of any such sum is varied under this section, then, for the purposes of the next review and order under that section, the amount of the sum shall be taken to be, and throughout the period under review to have been, its amount as so varied.

• (2) In that Act—

• (a) in section 64 (effect of alteration of rates of benefit) in subsection (1)(b), after the words “section 63” there shall be inserted the words “or 63A”;

• (b) in section 83, in subsection (3) (statutory instruments which require affirmative procedure) in paragraph (d), after the words “section 63” there shall be inserted the words “or 63A”; and

• (c) in subsection (5) of that section (Treasury consent) for the words “or 63” there shall be substituted the words “,63 or 63A”.

• (3) In section 59B of the principal Act (retirement allowance) after subsection (5) there shall be inserted—

(5A) For the purpose of determining under subsection (5) above the weekly rate of retirement allowance in the case of a beneficiary who— (a) retires or is deemed to have retired on 10th April 1989, and (b) on 9th April 1989 was entitled to reduced earnings allowance at a rate which was restricted under section 59A(8) above by reference to 40 per cent. of the maximum rate of disablement pension, it shall be assumed that the weekly rate of reduced earnings allowance to which he was entitled on 9th April 1989 was £26.96.

• (4) Section 2 of the Social Security Act 1988 (certain persons to be entitled to reduced earnings allowance after introduction of retirement allowance etc) shall have effect with the amendments specified in subsections (5) and (6) below.

• (5) After subsection (5) there shall be inserted—

(5A) For the purpose of determining under subsection (5) above the weekly rate of reduced earnings allowance payable in the case of a qualifying beneficiary, it shall be assumed that the weekly rate at which the allowance was payable to him on the relevant date was— (a) £25.84, where that date is 10th April 1988, or (b) £26.96, where that date is 9th April 1989. (5B) In subsection (5A) above “qualifying beneficiary” means a person entitled to reduced earnings allowance by virtue of subsection (4) above who— (a) did not attain pensionable age before 6th April 1987, or (b) did not retire from regular employment before that date, and who, on the relevant date, was entitled to the allowance at a rate which was restricted under section 59A(8) of the Social Security Act 1975 by reference to 40 per cent. of the maximum rate of disablement pension.

• (6) In subsection (7) (relevant date for persons entitled to the allowance by virtue of subsection (4)(b)) after the words “by virtue” there shall be inserted the word “only”.

• (7) Subsections (3) to (6) above shall be deemed to have come into force on 10th April 1989.

Effect of alteration in the component rates of income support

18

After section 64 of the 1986 Act (effect of alteration of rates of benefit) there shall be inserted—

(64A) (1) Subject to such exceptions and conditions as may be prescribed, where— (a) an award of income support is in force in favour of any person (“the recipient”), and (b) there is an alteration in any of the relevant amounts, that is to say— (i) any of the component rates of income support, (ii) any of the other sums specified in regulations under Part II above, or (iii) the recipient’s benefit income, and (c) the alteration affects the computation of the amount of income support to which the recipient is entitled, then subsection (2) or (3) below (as the case may be) shall have effect. (2) Where, in consequence of the alteration in question, the recipient becomes entitled to an increased or reduced amount of income support (“the new amount”), then, as from the commencing date, the amount of income support payable to or for the recipient under the award shall be the new amount, without any further decision of an adjudication officer, and the award shall have effect accordingly. (3) Where, notwithstanding the alteration in question, the recipient continues on and after the commencing date to be entitled to the same amount of income support as before, the award shall continue in force accordingly. (4) In any case where— (a) there is an alteration in any of the relevant amounts, and (b) before the commencing date (but after that date is fixed) an award of income support is made in favour of a person, the award either may provide for income support to be paid as from the commencing date, in which case the amount shall be determined by reference to the relevant amounts which will be in force on that date, or may provide for an amount determined by reference to the amounts in force at the date of the award. (5) In this section— - “alteration” means— in relation to— the component rates of income support, or any other sums specified in regulations under Part II of this Act, their alteration by or under any enactment, whether or not contained in that Part; and in relation to a person’s benefit income, the alteration of any of the sums referred to in section 63(1) above— by any enactment, or by an order under section 63 or 63A above, to the extent that any such alteration affects the amount of his benefit income; - “benefit income”, in relation to any person, means so much of his income as consists of— benefit under the benefit Acts, other than income support; or a war disablement pension or war widow’s pension; - “the commencing date”, in relation to an alteration, means the date on which the alteration comes into force in the case of the person in question; - “component rate”, in relation to income support, means the amount of— any of the sums specified in regulations under section 22(1) above; or the sum referred to in section 23(5)(b)(i) and (ii) above; - “relevant amounts” has the meaning given by subsection (1)(b) above.

Information and adjudication

Unauthorised disclosure of information relating to particular persons

19

• (1) A person who is or has been employed in social security administration or adjudication is guilty of an offence if he discloses without lawful authority any information which he acquired in the course of his employment and which relates to a particular person.

• (2) A person who is or has been employed in the audit of expenditure or the investigation of complaints is guilty of an offence if he discloses without lawful authority any information—

• (a) which he acquired in the course of his employment;

• (b) which is, or is derived from, information acquired or held by or for the purposes of any of the government departments or other bodies or persons referred to in Part I of Schedule 2 to this Act or in any corresponding enactment having effect in Northern Ireland; and

• (c) which relates to a particular person.

• (3) It is not an offence under this section—

• (a) to disclose information in the form of a summary or collection of information so framed as not to enable information relating to any particular person to be ascertained from it; or

• (b) to disclose information which has previously been disclosed to the public with lawful authority.

• (4) It is a defence for a person charged with an offence under this section to prove that at the time of the alleged offence—

• (a) he believed that he was making the disclosure in question with lawful authority and had no reasonable cause to believe otherwise; or

• (b) he believed that the information in question had previously been disclosed to the public with lawful authority and had no reasonable cause to believe otherwise.

• (5) A person guilty of an offence under this section shall be liable—

• (a) on conviction on indictment, to imprisonment for a term not exceeding two years or a fine or both; or

• (b) on summary conviction, to imprisonment for a term not exceeding six months or a fine not exceeding the statutory maximum or both.

• (6) For the purposes of this section, the persons who are “employed in social security administration or adjudication” are—

• (a) any person specified in Part I of Schedule 2 to this Act or in any corresponding enactment having effect in Northern Ireland;

• (b) any other person who carries out the administrative work of any of the government departments or other bodies or persons referred to in that Part of that Schedule or that corresponding enactment; and

• (c) any person who provides, or is employed in the provision of, services to any of those departments, persons or bodies;

and “employment”, in relation to any such person, shall be construed accordingly.

• (7) For the purposes of subsections (2) and (6) above, any reference in Part I of Schedule 2 to this Act or any corresponding enactment having effect in Northern Ireland to a government department shall be construed in accordance with Part II of that Schedule or any corresponding enactment having effect in Northern Ireland, and for this purpose “government department” shall be taken to include the Commissioners of Inland Revenue.

• (8) For the purposes of this section, the persons who are “employed in the audit of expenditure or the investigation of complaints” are—

• (a) the Comptroller and Auditor General;

• (b) the Comptroller and Auditor General for Northern Ireland;

• (c) the Parliamentary Commissioner for Administration;

• (d) the Northern Ireland Parliamentary Commissioner for Administration;

• (e) the Health Service Commissioner for England;

• (f) the Health Service Commissioner for Wales;

• (g) the Health Service Commissioner for Scotland;

• (h) the Northern Ireland Commissioner for Complaints;

• (i) any member of the staff of the National Audit Office or of the Northern Ireland Audit Office;

• (j) any other person who carries out the administrative work of either of those Offices, or who provides, or is employed in the provision of, services to either of them; and

• (k) any officer of any of the Commissioners referred to in paragraphs (c) to (h) above;

and “employment”, in relation to any such person, shall be construed accordingly.

• (9) For the purposes of this section a disclosure is to be regarded as made with lawful authority if, and only if, it is made—

• (a) in accordance with his official duty—

• (i) by a civil servant; or

• (ii) by a person employed in the audit of expenditure or the investigation of complaints who does not fall within subsection (8)(j) above;

• (b) by any other person either—

• (i) for the purposes of the function in the exercise of which he holds the information and without contravening any restriction duly imposed by the person responsible; or

• (ii) to, or in accordance with an authorisation duly given by, the person responsible;

• (c) in accordance with any enactment or order of a court;

• (d) for the purpose of instituting, or otherwise for the purposes of, any proceedings before a court or before any tribunal or other body or person referred to in Part I of Schedule 2 to this Act; or

• (e) with the consent of the appropriate person;

and in this subsection “the person responsible” means the Secretary of State, the Lord Chancellor or any person authorised by the Secretary of State or the Lord Chancellor for the purposes of this subsection and includes a reference to “the person responsible” within the meaning of any corresponding enactment having effect in Northern Ireland.

• (10) For the purposes of subsection (9)(e) above, “the appropriate person” means the person to whom the information in question relates, except that if the affairs of that person are being dealt with—

• (a) under a power of attorney,

• (b) by a receiver appointed under section 99 of the Mental Health Act 1983 or any corresponding enactment having effect in Northern Ireland,

• (c) by a Scottish mental health custodian, that is to say—

• (i) a curator bonis, tutor or judicial factor, or

• (ii) the managers of a hospital acting on behalf of that person under section 94 of the Mental Health (Scotland) Act 1984, or

• (d) by a mental health appointee, that is to say—

• (i) a person directed or authorised as mentioned in sub-paragraph (a) of rule 41(1) of the Court of Protection Rules 1984 or any similar appointee in Northern Ireland, or

• (ii) a receiver ad interim appointed under sub-paragraph (b) of that rule or any similar appointee in Northern Ireland,

the appropriate person is the attorney, receiver, custodian or appointee, as the case may be, or, in a case falling within paragraph (a) above, the person to whom the information relates.

• (11) This section shall come into force with the repeal of section 2 of the Official Secrets Act 1911.

Disclosure of information by Inland Revenue for social security purposes

20

Miscellaneous amendments relating to adjudication

21

Recovery from damages etc of sums equivalent to benefit

Recovery of sums equivalent to benefit from compensation payments in respect of accidents, injuries and diseases

22

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

• (7) Schedule 4 to this Act shall have effect for the purpose of supplementing the provisions of this section; and this section shall have effect subject to the provisions of that Schedule.

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

Occupational and personal pensions etc

Equal treatment for men and women

23

Schedule 5 to this Act shall have effect for the purpose of implementing the directive of the Council of the European Communities, dated 24th July 1986, relating to the principle of equal treatment for men and women in occupational social security schemes, and of making additional, supplemental and consequential provision.

Miscellaneous amendments relating to pensions

24

The enactments and instruments mentioned in Schedule 6 to this Act (which relate to occupational and personal pensions) shall have effect with the amendments there specified.

War pensions committees

Establishment and functions of war pensions committees

25

• (1) The Secretary of State may by regulations establish committees, known as war pensions committees, for such areas as may be specified in the regulations; and the regulations may, in particular, include provisions with respect to—

• (a) the membership of the committees;

• (b) the manner in which the members are to be appointed and the period for which, and the terms on which, they are to hold office; and

• (c) the manner in which they may be removed.

• (1A) The regulations may give the committees functions relating to one or more of the following—

• (a) war pensions;

• (b) war pensioners;

• (c) AFCS benefits;

• (d) AFCS benefit recipients.

• (2) ... the regulations may, in particular, provide that it is a function of a committee —

• (a) to consider any matter connected with war pensions or AFCS benefits or affecting people in its area who are war pensioners or AFCS benefit recipients and, where it thinks it appropriate, to make recommendations to the Secretary of State about that matter;

• (b) to consider complaints made to it by people receiving or claiming war pensions or AFCS benefits and, if it thinks fit, to make representations about those complaints to the Secretary of State;

• (c) to consider any matters referred to it by the Secretary of State and to report to him on those matters with such recommendations as it may think fit; and

• (d) to assist the War Pensioners’ Welfare Service in looking after the welfare of people in its area who are war pensioners or AFCS benefit recipients .

• (3) The regulations may include provisions with respect to the manner in which the committees are to discharge the functions conferred on them; and they shall exercise their functions subject to, and in accordance with, any such provisions.

• (3A) The regulations may provide for the committees to have names specified in the regulations (as well as being known as war pensions committees).

• (4) In this section—

• “AFCS benefit” means a benefit payable under an armed and reserve forces compensation scheme established by order under section 1(2) of the Armed Forces (Pensions and Compensation) Act 2004;

• “AFCS benefit recipient” means a person in receipt of an AFCS benefit, in the person's capacity as such;

• “war pension” means—

• (a) any pension or other benefit, payable otherwise than under an enactment, for or in respect of a person who has died or been disabled in consequence of service as a member of the armed forces of the Crown,

• (b) any pension or benefit awarded under—

• (i) the Personal Injuries (Emergency Provisions) Act 1939,

• (ii) the Pensions (Navy, Army, Air Force and Mercantile Marine) Act 1939, or

• (iii) the Polish Resettlement Act 1947,

• (c) any pension or other payment which constitutes such an obligation as is mentioned in section 4(1) of the Statute Law Revision Act 1958 (seamen and fishermen killed or injured in the 1914-1918 war),

• (d) any other pension or benefit which is specified in an order made by the Secretary of State for the purposes of this section,

but does not include any pension or benefit administered by the Defence Council or the Commissioners for the Royal Hospital for Soldiers at Chelsea, or a pension or benefit administered by the Minister of the Crown with responsibility for defence (except one administered by him in the exercise of functions transferred to him from the Secretary of State for Social Security); and

• (5) In section 9(1) of the Chronically Sick and Disabled Persons Act 1970 (central advisory committee to include chairmen of at least 12 war pensions committees) for the words “by schemes under section 1 of that Act” there shall be substituted the words “by regulations under section 25 of the Social Security Act 1989”.

• (6) In the War Pensions Act 1921—

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

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

General and supplementary provisions

Pre-consolidation amendments

26

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

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

Application to the Crown

27

Financial provisions

28

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

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

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

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

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

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

Regulations and orders: general provisions

29

• (1) Subject to the following provisions of this section, section 175(2) to (5) of the Social Security Contributions and Benefits Act 1992shall apply in relation to any power conferred by any provision of this Act to make regulations or an order as they apply in relation to any power conferred by that Act to make regulations or an order, but as if for references to that Act there were substituted references to this Act.

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

• (3) A statutory instrument—

• (a) which contains (whether alone or with other provisions) any regulations or orders under this Act, other than orders under section 33 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 Parliament.

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

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

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

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

Interpretation

30

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

• “the 1973 Act” means the Social Security Act 1973;

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• “the 1986 Act” means the Social Security Act 1986;

• “Commissioner” has the same meaning as it has in the principal Act;

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

• “prescribe” means prescribe by regulations;

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

• “regulations” means regulations made by the Secretary of State.

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

Minor and consequential amendments, repeals and transitional provisions

31

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

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

• (3) The Secretary of State may by regulations make—

• (a) such transitional provision,

• (b) such consequential provision, or

• (c) such savings,

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

Corresponding provision for Northern Ireland

32

Short title, commencement and extent

33

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

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

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

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

• (b) Schedule 2;

• (c) paragraphs 1, 12 and 13 of Schedule 3 (and section 21 so far as relating to those paragraphs),

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

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

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

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

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

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

• (6) Sections 25, 31(3), 32 and this section and paragraph 20A of Schedule 4extend to Northern Ireland.

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

SCHEDULE 1

Category A and Category B retirement pensions

1–10

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

2

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

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

• (b) the words “retired or”.

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

(5) In any case where— (a) a person claims a Category A or Category B retirement pension, and (b) the date specified in the claim as the date on which entitlement to the pension is to commence falls after the date when the claim was made, such a pension may be awarded as from the date so specified but, if so awarded, shall be conditional on the person’s not ceasing to be entitled to the pension in consequence of any election under subsection (3) above.

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

Deferred entitlement to retirement pension

3

• (1) In Schedule 1 to the Pensions Act (deferred retirement) for the words from the beginning of the Schedule to “age” in paragraph 1 there shall be substituted—

SCHEDULE 1 (1) Where a person’s entitlement to a Category A or Category B retirement pension is deferred,

.

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

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

(2) In this Schedule— - “incremental period” means any period of six days which are treated by regulations as days of increment for the purposes of this Schedule in relation to the person and the pension in question; and - “the period of enhancement”, in relation to that person and that pension, means the period which— begins on the same day as the period of deferment in question; and ends on the same day as that period or, if earlier, on the day before the fifth anniversary of the beginning of that period.

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

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

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

• (7) In paragraph 3 of that Schedule—

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

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

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

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

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

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

(5) (1) For the purposes of paragraphs 1 to 3 above in their application to a Category B retirement pension to which a married woman is entitled by virtue of her husband’s contributions, a married woman who would have become entitled to such a pension on an earlier day if her husband’s entitlement to his Category A retirement pension had not been deferred shall be treated as having (in addition to any other period of enhancement) a period of enhancement which begins on that earlier day and ends on the same day as her husband’s period of enhancement. (2) The reference in sub-paragraph (1) above to the day on which the woman’s husband’s period of enhancement ends shall, where the marriage is terminated before that day, be construed as a reference to the day on which the marriage is terminated.

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

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

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

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

“Deferred” and “period of deferment” (in relation to entitlement to a Category A or Category B retirement pension)	See section 12 of the Pensions Act.
“Period of deferment” (in relation to a Category A or Category B retirement pension)	See “deferred” and “period of deferment” above.
---	---

Unemployment and sickness benefit

4

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

(b) on that day the person— (i) is over pensionable age, but not more than five years over that age; and (ii) would be entitled to a Category A retirement pension (section 28) if his entitlement had not been deferred or if he had not made an election under section 30(3) below; or (c) on that day the person— (i) is over pensionable age, but not more than five years over that age; and (ii) would be entitled to a Category B retirement pension by virtue of the contributions of his deceased spouse, but for any such deferment or election.

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

Invalidity pension

5

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

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

(2) The conditions of this subsection are that on that day— (a) the person would be entitled to a Category A retirement pension (section 28) if his entitlement had not been deferred or if he had not made an election under section 30(3) below; or (b) the person would be entitled to a Category B retirement pension by virtue of the contributions of his deceased spouse, but for any such deferment or election.

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

Category C retirement pension

6

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

Increases for dependants

7

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

Industrial injuries benefit

8

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

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

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

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

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

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

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

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

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

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

.

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

(7) Regulations may— (a) make provision with respect to the meaning of “regular employment” for the purposes of this section; and (b) prescribe circumstances in which, and periods for which, a person is or is not to be regarded for those purposes as having given up, or returned to, such employment. (8) Regulations under subsection (7) above may, in particular— (a) provide for a person to be regarded— (i) as having given up, or as not having returned to, regular employment, notwithstanding that he is or intends to be an earner; or (ii) as having returned to, or as not having given up, regular employment, notwithstanding that he has or may have one or more days of interruption of employment; and (b) prescribe circumstances in which a person is or is not to be regarded as having given up, or returned to, regular employment by reference to— (i) the level or frequency of his earnings during a prescribed period; or (ii) the number of hours for which he works during a prescribed period calculated in a prescribed manner.

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

(8) Subsection (4) above shall, in prescribed circumstances, cease to apply in the case of a person who is engaged in regular employment; and, subject to regulations, any subsequent entitlement of his to reduced earnings allowance or retirement allowance shall be determined as if that subsection had never been enacted. (8A) In subsection (8) above, “regular employment” has the same meaning as it has in section 59B of the Social Security Act 1975 (retirement allowance) and regulations may prescribe circumstances in which a person is or is not to be regarded as engaged in such employment.

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

Category B retirement pension for widower

9

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

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

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

Invalidity pensions for widows and widowers

10

• (1) In section 15 of that Act, in subsection (5) (disentitlement to widow’s invalidity pension)—

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

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

• (2) In section 16 of that Act, in subsection (5) (disentitlement to widower’s invalidity pension)—

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

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

Occupational and personal pensions

11

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

SCHEDULES 2, 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part I — The Specified Persons

Government departments

A civil servant in—

The Inland Revenue

A member or officer of the Commissioners of Inland Revenue.

Adjudication officers

Adjudicating bodies

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

The Occupational Pensions Board

The Social Fund

Former statutory bodies and officers

Part II — Construction of References to Government Departments Etc

1

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

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

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

• (c) the former Ministry of Social Security, and

• (d) any other former government department,

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

• (2) In sub-paragraph (1) above—

• “occupational pension scheme” has the meaning given by section 66(1) of the Pensions Act;

• “personal pension scheme” has the meaning given by section 84(1) of the 1986 Act; and

• “war pension” has the meaning given by section 25(4) of this Act.

2

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

3

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

4

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

• (a) any of the following aspects of social security—

• (i) National Insurance contributions,

• (ii) statutory sick pay,

• (iii) statutory maternity pay, or

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

SCHEDULE 3

Questions arising for determination by the Secretary of State

1

• (1) In section 93 of the principal Act (questions for the Secretary of State) after subsection (2) there shall be inserted—

(2A) Regulations may make provision restricting the persons who may apply to the Secretary of State for the determination of any such question as is mentioned in subsection (1) above.

• (2) In section 115 of that Act (power to make procedure regulations) in subsection (6) (declaration of extent of certain powers) after the word “declared” there shall be inserted “(a)” and at the end of that subsection there shall be added the words

and (b) that the power to provide for the manner in which questions arising for determination by the Secretary of State are to be raised includes power to make provision with respect to the formulation of any such questions (whether arising on a reference under section 148 below or otherwise).

Procedure on determination of claims or questions

2

At the end of section 99 of that Act (decision of adjudication officer) there shall be added—

(4) Where— (a) a case has been referred to a social security appeal tribunal (“the tribunal”), and (b) the claimant makes a further claim which raises the same or similar questions, and (c) that further claim is referred to the tribunal by the adjudication officer, then the tribunal may proceed to determine the further claim whether or not notice of its reference has been given to the claimant under subsection (3) above.

3

• (1) After section 115 of that Act there shall be inserted—

(115A) (1) An authority to which this section applies may refer any question of special difficulty arising for decision by the authority to one or more experts for examination and report. (2) The authorities to which this section applies are— (a) an adjudication officer; (b) an adjudicating medical practitioner, or two or more such practitioners acting together; (c) a specially qualified adjudicating medical practitioner appointed by virtue of section 113 above, or two or more such practitioners acting together; (d) a social security appeal tribunal; (e) a medical appeal tribunal; (f) the Attendance Allowance Board; (g) a Commissioner; (h) the Secretary of State. (3) Regulations may prescribe cases in which a Commissioner shall not exercise the power conferred by subsection (1) above. (4) In this section “expert” means a person appearing to the authority to have knowledge or experience which would be relevant in determining the question of special difficulty. (115B) (1) Where it appears to an authority to which this section applies that a matter before the authority involves a question of fact of special difficulty, then, unless regulations otherwise provide, the authority may direct that in dealing with that matter they shall have the assistance of one or more assessors. (2) The authorities to which this section applies are— (a) two or more adjudicating medical practitioners acting together; (b) two or more specially qualified adjudicating medical practitioners, appointed by virtue of section 113 above, acting together; (c) a social security appeal tribunal; (d) a medical appeal tribunal; (e) the Attendance Allowance Board; (f) a Commissioner; (g) the Secretary of State.

• (2) The following provisions of that Act (which enable certain adjudicating authorities to refer matters to medical practitioners or to have the assistance of assessors and which are superseded by sub-paragraph (1) above) shall cease to have effect—

• (a) section 101(6) and (7);

• (b) paragraph 4 of Schedule 11;

• (c) paragraphs 8 and 9 of Schedule 13.

4

In Schedule 13 to that Act, in paragraph 1 (procedure to be followed in connection with determination of claims and questions by Secretary of State etc) after the words “Secretary of State” there shall be inserted the words “, an adjudication officer”.

Appeals and appellate bodies

5

In section 100 of that Act (appeals to social security appeal tribunal) in subsection (3) the words from “without leave” onwards shall cease to have effect.

6

In section 101 of that Act (appeals from social security appeal tribunal to Commissioner on point of law) in subsection (5) (powers of Commissioner when holding that there has been error of law)—

• (a) after the words “point of law” there shall be inserted the words “he shall set it aside and”; and

• (b) after paragraph (b) (Commissioner to refer case to tribunal with directions for determination) there shall be added the words—

and, subject to any direction of the Commissioner, the tribunal on a reference under paragraph (b) above shall consist of persons who were not members of the tribunal which gave the erroneous decision.

7

In section 104 of that Act (review of decisions) after subsection (3A) there shall be inserted—

(3B) Where a claimant has appealed against a decision of an adjudication officer and the decision is reviewed under this section by an adjudication officer, then— (a) if the adjudication officer considers that the decision which he has made on the review is the same as the decision that would have been made on the appeal had every ground of the claimant’s appeal succeeded, then the appeal shall lapse; but (b) in any other case, the review shall be of no effect and the appeal shall proceed accordingly.

8

In section 106 of that Act, for subsection (2) (regulations to make provision concerning appeals from decision of the Attendance Allowance Board on point of law etc) there shall be substituted—

(2) An appeal lies to a Commissioner, with his leave or that of another Commissioner, against a determination by the Board of any question of law arising either— (a) on a review under subsection (1) above, or (b) in connection with a refusal by the Board to review a determination made by them under section 105(3) above or this section, at the instance of the claimant in question or the Secretary of State. (2A) Where the Commissioner holds that the Board’s determination was erroneous in point of law— (a) he shall set it aside and refer the case to the Board; and (b) unless the Commissioner otherwise directs, the Board shall not delegate the determination of that case to the medical practitioner, or any of the medical practitioners, who gave the erroneous decision. (2B) The references to the Board in subsection (2) above, and the first such reference in subsection (2A) above, include a reference to a delegate appointed in pursuance of paragraph 5 of Schedule 11 to this Act. (2C) Regulations may make provision as to the manner in which, and the time within which, appeals under subsection (2) above are to be brought and applications for leave to appeal under that subsection are to be made.

9

• (1) In section 112 of that Act (appeals from medical appeal tribunal to Commissioner on point of law)—

• (a) subsection (4) (power of tribunal to refer question of law to a Commissioner) shall cease to have effect; and

• (b) in subsection (5) (tribunal to revise decision on case in light of Commissioner’s decision on point of law) the words “or reference” and the words from “and the medical” onwards shall cease to have effect.

• (2) After subsection (5) there shall be added—

(6) Where the Commissioner holds that the decision was erroneous in point of law he shall set it aside and refer the case to a medical appeal tribunal with directions for its determination. (7) Subject to any direction of the Commissioner, the tribunal on a reference under subsection (6) above shall consist of persons who were not members of the tribunal which gave the erroneous decision.

10

In Schedule 13 to that Act (provision which may be made by procedure regulations) after paragraph 7 there shall be inserted—

(7A) Provision empowering the chairman of a social security appeal tribunal or a medical appeal tribunal to give directions for the disposal of any purported appeal which he is satisfied that the tribunal does not have jurisdiction to entertain.

Review of decisions

11

• (1) In section 104 of that Act (review of decisions) in subsection (1) after paragraph (b) there shall be inserted—

(bb) it is anticipated that a relevant change of circumstances will so occur; or

.

• (2) After that subsection there shall be inserted—

(1ZA) Where a decision is reviewed on the ground mentioned in subsection (1)(bb) above, the decision given on the review— (a) shall take effect on the day prescribed for that purpose by reference to the date on which the relevant change of circumstances is expected to occur; and (b) shall be reviewed again if the relevant change of circumstances either does not occur or occurs otherwise than on that date.

• (3) In subsection (5) of that section (regulations) in paragraph (a) after the words “subsection (1)(b)” there shall be inserted the words “and (bb)”.

• (4) At the end of paragraph (b) of that subsection there shall be added the words “(whether that period falls wholly or partly before or after the making of the regulations)”.

Disablement benefit etc.

12

• (1) In section 108 of that Act (disablement questions) at the end of subsection (1) there shall be added the words “(and accordingly fall to be determined by an adjudication officer).”

• (2) For subsection (4A) of that section there shall be substituted—

(4A) Where, in the case of a claimant for disablement benefit, the extent of any disablement of his resulting from an aggregable accident (that is to say, an accident other than the one which is the basis of the claim in question) has been assessed in accordance with paragraph 4(2) of Schedule 8 to this Act at less than 14 per cent., then— (a) the adjudication officer may refer the disablement questions relating to the aggregable accident to one or more adjudicating medical practitioners for fresh determination; and (b) on any such reference— (i) those questions shall be determined as at the first day of the common period; and (ii) the period to be taken into account shall be the period beginning with that day. (4B) In subsection (4A) above “the first day of the common period” means whichever is the later of— (a) the first day of the period taken into account by the assessment of the extent of the claimant’s disablement resulting from the accident which is the basis of the claim in question; (b) the first day of the period taken into account by the assessment of the extent of his disablement resulting from the aggregable accident.

13

• (1) In Schedule 8 to that Act (assessment of extent of disablement) for paragraph 4(2) there shall be substituted—

(2) Where the assessed extent of a claimant’s disablement amounts to less than 14 per cent., then, subject to sub-paragraphs (3) and (4) below, that assessment shall be a final assessment and the period to be taken into account by it shall not end before the earliest date on which it seems likely that the extent of the disablement will be less than 1 per cent. (3) Sub-paragraph (2) above does not apply in any case where it seems likely that— (a) the assessed extent of the disablement will be aggregated with the assessed extent of any present disablement, and (b) that aggregate will amount to 14 per cent. or more. (4) Where the extent of the claimant’s disablement is assessed at different percentages for different parts of the period taken into account by the assessment, then— (a) sub-paragraph (2) above does not apply in relation to the assessment unless the percentage assessed for the latest part of that period is less than 14 per cent., and (b) in any such case that sub-paragraph shall apply only in relation to that part of that period (and subject to sub-paragraph (3) above).

• (2) In paragraph 5 of that Schedule, in paragraph (a) of the proviso (degree of particularity in assessment of extent and period of disablement)—

• (a) for the words “section 57” there shall be substituted the words “sections 57 and 59A”; and

• (b) at the end there shall be added the words “and reduced earnings allowance (whether or not a claim has been made)”.

Recovery of overpayments

14

• (1) In section 53 of the 1986 Act (overpayments) after subsection (1) there shall be inserted—

(1A) Where any such determination as is referred to in subsection (1) above is made on an appeal or review, there shall also be determined in the course of the appeal or review the question whether any, and if so what, amount is recoverable under that subsection by the Secretary of State.

• (2) In subsection (4) after the word “unless” there shall be inserted “(a)” and at the end there shall be added the words

and (b) it has been determined on the appeal or review that the amount is so recoverable.

Miscellaneous

15

In section 103 of the principal Act (reference of special questions) in subsection (2) after the word “making” there shall be inserted the words “or directing”.

16

In section 167 of that Act (Parliamentary control of regulations and orders) there shall be added at the end—

(4) All regulations made under this Act by the Lord Chancellor shall be subject to annulment in pursuance of a resolution of either House of Parliament.

17

In Schedule 10 to that Act (supplementary provision as to social security appeal tribunals etc) paragraphs 1(7) and 2(2) (which require, so far as practicable, tribunal panel members and chairmen to serve in turn) shall cease to have effect.

18

In paragraph 2(5) of Schedule 12 to that Act (chairmen of medical appeal tribunal to be barrister, advocate or solicitor of at least 7 years standing) for the words “7 years”' there shall be substituted the words “5 years”'.

19

In Schedule 20 to that Act (glossary of expressions) the definition of “local office” shall be omitted.

SCHEDULE 4

Part I — Interpretation

1

• (1) In this Schedule—

• “the recoupment provisions” means the provisions of section 22 of this Act and this Schedule;

• “the relevant deduction” means the deduction required to be made from the compensation payment in question by virtue of the recoupment provisions;

• “the relevant payment” means the payment required to be made to the Secretary of State by virtue of the recoupment provisions;

• “the total benefit” means the gross amount referred to in section 22(1)(a) of this Act.

• (2) If, after making the relevant deduction from the compensation payment, there would be no balance remaining for payment to the intended recipient, any reference in this Schedule to the making of the compensation payment shall be construed in accordance with regulations.

• (3) Expressions used in this Schedule and in section 22 of this Act have the same meaning in this Schedule as they have in that section.

Part II — Payments, Deductions and Certificates

Time for making payment to Secretary of State

2

The compensator’s liability to make the relevant payment arises immediately before the making of the compensation payment, and he shall make the relevant payment before the end of the period of 14 days following the day on which the liability arises.

The certificate of total benefit

3

• (1) It shall be for the compensator to apply to the Secretary of State for the certificate of total benefit and he may, subject to sub-paragraph (5) below, from time to time apply for fresh certificates.

• (2) The certificate of total benefit shall specify—

• (a) the amount which has been, or is likely to be, paid on or before a specified date by way of any relevant benefit which is capable of forming part of the total benefit;

• (b) where applicable—

• (i) the rate of any relevant benefit which is, has been, or is likely to be paid after the date so specified and which would be capable of forming part of the total benefit; and

• (ii) the intervals at which any such benefit is paid and the period for which it is likely to be paid;

• (c) the amounts (if any) which, by virtue of the recoupment provisions, are to be treated as increasing the total benefit; and

• (d) the aggregate amount of any relevant payments made on or before a specified date (reduced by so much of that amount as has been paid by the Secretary of State to the intended recipient before that date in consequence of the recoupment provisions).

• (3) On issuing a certificate of total benefit, the Secretary of State shall be taken to have certified the total benefit as at every date for which it is possible to calculate an amount that would, on the basis of the information so provided, be the total benefit as at that date, on the assumption that payments of benefit are made on the days on which they first become payable.

• (4) The Secretary of State may estimate, in such manner as he thinks fit, any of the amounts, rates or periods specified in the certificate of total benefit.

• (5) A certificate of total benefit shall remain in force until such date as may be specified in the certificate for that purpose and no application for a fresh certificate shall be made before that date.

• (6) Where a certificate ceases to be in force, the Secretary of State may issue a fresh certificate, whether or not an application has been made to him for such a certificate.

• (7) The compensator shall not make the compensation payment at any time when there is no certificate of total benefit in force in respect of the victim, unless his liability to make the relevant deduction and the relevant payment has ceased to be enforceable by virtue of paragraph 15 below.

Exemption from deduction in cases involving small payments

4

• (1) Regulations may make provision exempting persons from liability to make the relevant deduction or the relevant payment in prescribed cases where the amount of the compensation payment in question, or the aggregate amount of two or more connected compensation payments, does not exceed the prescribed sum.

• (2) Regulations may make provision for cases where an amount has been deducted and paid to the Secretary of State which, by virtue of regulations under sub-paragraph (1) above, ought not to have been so deducted and paid, and any such regulations may, in particular, provide for him to pay that amount to the intended recipient or the compensator or to pay a prescribed part of it to each of them.

• (3) The reference in section 22(4)(a) of this Act to a “small payment” is a reference to a payment from which by virtue of this paragraph no relevant deduction falls to be made.

• (4) For the purposes of this paragraph—

• (a) two or more compensation payments are “connected” if each is made to or in respect of the same victim and in respect of the same accident, injury or disease; and

• (b) any reference to a compensation payment is a reference to a payment which would be such a payment apart from section 22(4)(a) of this Act.

Multiple compensation payments

5

–

• (1) This paragraph applies where—

• (a) a compensation payment has been made (an “earlier payment”) to or in respect of the victim; and

• (b) subsequently another such payment (a “later payment”) falls to be made to or in respect of the same victim in respect of the same accident, injury or disease (whether by the same or another compensator).

• (2) In determining the amount of the relevant deduction and payment required to be made in connection with the later payment, the amount referred to in section 22(1)(a) of this Act shall be reduced by the amount of any relevant payment made in connection with the earlier payment, or, if more than one, the aggregate of those relevant payments.

• (3) In relation to the later payment, the compensator shall take the amount of the reduction required by sub-paragraph (2) above to be such as may be specified under paragraph 3(2)(d) above in the certificate of total benefit issued to him in connection with that later payment.

• (4) In any case where—

• (a) the relevant payment made in connection with an earlier payment is not reflected in the certificate of total benefit in force in relation to a later payment, and

• (b) in consequence, the aggregate of the relevant payments made in relation to the later payment and every earlier payment exceeds what it would have been had that relevant payment been so reflected,

the Secretary of State shall pay the intended recipient an amount equal to the excess.

• (5) In determining any rights and liabilities in respect of contribution or indemnity, relevant payments shall be treated as damages paid to or for the intended recipient in respect of the accident, injury or disease in question.

Collaboration between compensators

6

• (1) This paragraph applies where compensation payments in respect of the same accident, injury or disease fall (or apart from the recoupment provisions would fall) to be made to or in respect of the same victim by two or more compensators.

• (2) Where this paragraph applies, any two or more of those compensators may give the Secretary of State notice that they are collaborators in respect of compensation payments in respect of that victim and that accident, injury or disease.

• (3) Where such a notice is given and any of the collaborators makes a relevant payment in connection with such a compensation payment, each of the other collaborators shall be treated as if the aggregate amount of relevant payments specified in his certificate of total benefit, as in force at the time of that relevant payment, or in a fresh certificate which does not purport to reflect the payment, were increased by the amount of that payment.

Structured settlements

7

• (1) This paragraph applies where—

• (a) in final settlement of a person’s claim, an agreement is entered into—

• (i) for the making of periodical payments (whether of an income or capital nature) to or in respect of the victim; or

• (ii) for the making of such payments and one or more lump sum payments; and

• (b) apart from this paragraph, those payments would fall to be regarded for the purposes of the recoupment provisions as compensation payments.

• (2) Where this paragraph applies, the recoupment provisions (other than this paragraph) shall have effect on the following assumptions, that is to say—

• (a) the relevant period in the case of the compensator in question shall be taken to end (if it has not previously done so) on the day of settlement;

• (b) the compensator in question shall be taken—

• (i) to have been liable to make on that day a single compensation payment of the amount referred to in section 22(1)(a) of this Act (reduced or increased in accordance with such of the recoupment provisions as would have applied in the case of a payment on that day); and