Contributions

1 Amendments relating to primary Class 1 contributions

(1) In section 4 of the principal Act, for subsections (6) to (6B) (computation of primary Class 1 contributions) there shall be substituted—

“(6) Where a primary Class 1 contribution is payable, the amount of that contribution shall be the aggregate of—

(a) the initial primary percentage of so much of the earnings paid in the tax week, in respect of the employment in question, as does not exceed the current lower earnings limit; and

(b) the main primary percentage of so much of those earnings as exceeds that limit but does not exceed the upper earnings limit;

but this subsection is subject to regulations under subsection (7) below or sections 128 to 132 below and to section 27 of the Pensions Act (contracted-out rates).

(6A) For the purposes of this Act the primary percentages shall be as follows—

(a) the initial primary percentage shall be 2 per cent.; and

(b) the main primary percentage shall be 9 per cent.;

but the rates of those primary percentages are subject to alteration under sections 122 and 123A below.

(6B) In the case of earners paid otherwise than weekly, any reference in subsection (6) above to the current upper, or (as the case may be) lower, earnings limit shall be taken as a reference to the prescribed equivalent of that limit.”

(2) In subsection (6F) of that section (alteration of number of primary or secondary brackets) the words “primary or” shall be omitted.

(3) In section 122 of that Act (additional power to alter contributions) for paragraph (a) of subsection (1) there shall be substituted—

“(a) the percentage rate specified—

(i) as the initial primary percentage in section 4(6A)(a);

(ii) as the main primary percentage in section 4(6A)(b);”.

(4) In subsection (4) of that section (variation of rates for purpose of adjusting Redundancy Fund) for paragraph (a) there shall be substituted—

“(a) the percentage rate specified—

(i) as the initial primary percentage in section 4(6A)(a);

(ii) as the main primary percentage in section 4(6A)(b);”.

(5) In subsection (6) of that section, for paragraph (a) (maximum variation in Class 1 rates of 025 percentage points) there shall be substituted—

“(a) to increase for any tax year—

(i) the percentage rate of the initial or main primary percentage, or

(ii) the percentage rate for secondary Class 1 contributions,

to a percentage rate more than 025 per cent. higher than the percentage rate applicable at the end of the preceding tax year for the primary percentage or secondary Class 1 contribution in question; or”.

(6) In section 123A of that Act (further power to alter certain contributions) for subsection (1) there shall be substituted—

“(1) For the purpose of adjusting amounts payable by way of primary Class 1 contributions, the Secretary of State may at any time make an order altering—

(a) the percentage rate specified as the initial primary percentage in section 4(6A)(a);

(b) the percentage rate specified as the main primary percentage in section 4(6A)(b).”

(7) In subsection (3) of that section, for paragraph (a) (limit on increase of primary Class 1 rates) there shall be substituted—

“(a) to alter the percentage rate of the initial or main primary percentage to a percentage rate more than 025 per cent. higher than the percentage rate applicable at the end of the preceding tax year for the primary percentage in question; or”.

(8) In section 134 of that Act (destination of contributions) in paragraphs (a) and (i) of subsection (4) (“appropriate national health service allocation” and “appropriate employment protection allocation”, when in force, to include specified percentage of earnings in respect of which primary Class 1 contributions were paid) after the word “paid” there shall be inserted the words “at the main primary percentage rate”.

(9) In Schedule 20 to that Act (glossary of expressions) there shall be inserted at the appropriate places—

2 Repayment of contributions where earnings become repayable

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;”.

3 Abolition of Treasury supplement to contributions

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.

4 Earnings factors

(1) Section 13 of the principal Act (contribution conditions and earnings factors) shall be amended in accordance with subsections (2) to (4) below.

(2) In subsection (5) (manner in which tables and rules are to be drawn up) after the words “so that in general” there shall be inserted—

“(a) for any tax year beginning on or after 6th April 1987, the amount of earnings on which primary Class 1 contributions have been paid or treated as paid gives rise, subject to subsection (5A) below, to an earnings factor for that year equal or approximating to the amount of those earnings; and”.

(3) After subsection (5A) there shall be inserted—

“(5AA) Regulations may impose limits with respect to the earnings factors which a person may have or be treated as having in respect of any one tax year.”

(4) After subsection (5B) (duty to maintain and retain records) there shall be inserted—

“(5C) Where the Secretary of State is satisfied that records of earnings relevant for the purpose of calculating a person’s earnings factors for a tax year beginning on or after 6th April 1987 have not been maintained or retained or are otherwise unobtainable then, for the purpose of determining those earnings factors, he may—

(a) compute, in such manner as he thinks fit, an amount which shall be regarded as the amount of that person’s earnings on which primary Class 1 contributions have been paid or treated as paid, or

(b) take the amount of those earnings to be such sum as he may specify in the particular case.”

(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 [S. I. 1979/676.] Social Security (Earnings Factor) Regulations 1979; and

• “the Amending Regulations” means the [S. I. 1985/1417.] 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 [S. I. 1988/429.] 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

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

(1) In section 20(11) of the 1986 Act (definitions for Part II) for the definition of “child” there shall be substituted—

““child”, subject to section 26(3)(d) below, means a person under the age of 16”.

(2) In section 26(3) of that Act (person liable to maintain spouse and children etc)—

(a) in paragraph (a), for the words “his children” there shall be substituted the words “any children of whom he is the father”;

(b) in paragraph (b), for the words “her children” there shall be substituted the words “any children of whom she is the mother”; and

(c) after paragraph (c) there shall be added the words “and

(d) “child” includes a person who has attained the age of 16 but not the age of 19 and in respect of whom either parent, or some person acting in the place of either parent, is receiving income support.”

(3) In section 26(4) of that Act (reference to a person’s children to be construed in accordance with the [1987 c. 42.] Family Law Reform Act 1987) for the words “a person’s children” there shall be substituted the words “children of whom the man or the woman is the father or the mother”.

(4) In section 26(5) of that Act (adaptation for Scotland)—

(a) after the word “children” where first occurring there shall be inserted the words “of whom the man or the woman is the father or the mother”; and

(b) for that word where next occurring there shall be substituted the words “any such children”.

(5) In section 17(2)(a) of the [1970 c. 36.] Merchant Shipping Act 1970 (seaman’s dependants to consist of his spouse and certain persons under the age of sixteen) for the word “sixteen” there shall be substituted the word “nineteen”.

Benefits under the principal Act

6 Benefits for women widowed before 11th April 1988

(1) In the case of a widow whose late husband died before 11th April 1988 and who either—

(a) was over the age of 40 but under the age of 55 at the time of her husband’s death, or

(b) is over the age of 40 but under the age of 55 at the time when she ceases to be entitled to a widowed mother’s allowance,

section 26 of the principal Act (widow’s pension) shall have effect, and be taken always to have had effect, as if section 36(3) of the 1986 Act (which substituted “45” for “40”, and “55” for “50”, in subsections (1) and (2)) had never been enacted.

(2) The [S.I. 1987/1854.] Social Security (Widow’s Benefit and Retirement Pensions) Amendment Regulations 1987 shall have effect, and be taken always to have had effect, with the addition at the end of regulation 3 (transitional provision for widowed mother’s allowance where husband died before 11th April 1988) of the following—

“(3) In determining whether a widow—

(a) whose late husband died on or after 7th October 1987 and before 11th April 1988, and

(b) who became entitled to a widow’s allowance on his death,

is also entitled, after the cessation of that allowance, to a widowed mother’s allowance for any period beginning on or after 11th April 1988, regulation 16(1) of the principal Regulations shall apply as if regulation 2(6) above had not been made.

(4) In determining whether a widow—

(a) whose late husband died before 11th April 1988,

(b) who immediately before that date was entitled to a widowed mother’s allowance otherwise than by virtue of regulation 16(1) of the principal Regulations, and

(c) who would, apart from this paragraph, cease to be entitled to that allowance on or after that date,

is entitled to such an allowance for any period beginning on or after that date, that regulation shall apply as if regulation 2(6) above had not been made.”

(3) The [S.I. 1989/523.] 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 [S.I. 1977/343.] 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 104 of the principal Act.

(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) Subsection (4) of section 104 of the principal Act (appeals from reviews) shall apply in relation to a review under this section as it applies in relation to a review under that section.

(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 [S.I. 1987/1854.] 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 [1978 c. 30.] Interpretation Act 1978 (effect of repeals, substitutions etc).

7 Abolition of earnings rule etc

(1) In section 30 of the principal Act, subsection (1) (the earnings rule) shall cease to have effect.

(2) In section 28(1)(a) of that Act (conditions of entitlement to Category A retirement pension) the words “and has retired from regular employment” shall cease to have effect.

(3) In section 29 of that Act (woman’s Category B retirement pension)—

(a) in subsections (2) and (3) (first and second cases of entitlement) in paragraph (a), for the words “both of them have retired from regular employment” there shall be substituted the words “has become entitled to a Category A retirement pension”; and

(b) in subsection (5), paragraph (a) (requirement, in fourth such case, to have retired from regular employment) shall cease to have effect.

(4) For section 12 of the Pensions Act (deferred retirement) there shall be substituted the following—

“12 Increase of retirement pension where entitlement is deferred

(1) Where a person’s entitlement to a Category A or Category B retirement pension is deferred, Schedule 1 to this Act shall have effect for increasing the rate of his pension.

(2) For the purposes of this Act and the principal Act, a person’s entitlement to a Category A or Category B retirement pension is “deferred” if and so long as he does not become entitled to that pension by reason only—

(a) that he has not satisfied the conditions of section 165A of the principal Act (requirement to claim); or

(b) that, in the case of a woman’s Category B retirement pension by virtue of her husband’s contributions, her husband has not satisfied those conditions with respect to his Category A retirement pension;

and, in relation to any such pension, “period of deferment” shall be construed accordingly.”

(5) Subsection (1) above affects the rate of pension to which a person is entitled for the week in which that subsection comes into force as well as any subsequent week (“week” having the same meaning in this subsection as it had in the proviso to the said section 30(1) immediately before its repeal).

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

8 Mobility allowance: increase of age limit to 80 years

(1) In section 37A of the principal Act (mobility allowance), in paragraphs (a) and (aa) of subsection (5) and in subsection (6A) (each of which refers to the age of 75) for “75” there shall be substituted “80”.

(2) For subsection (6B) of that section there shall be substituted—

“(6B) Where, before the coming into force of this subsection, a person has been awarded a mobility allowance for a specified period ending with—

(a) the date on which he will attain pensionable age, or

(b) the date on which he will attain the age of 75,

that award shall have effect as if it referred instead to a period ending with the date on which he will attain the age of 80.”

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

(1) In section 5 of the [1980 c. 39.] Social Security (No. 2) Act 1980 (abatement of unemployment benefit on account of payments of occupational pensions) in subsections (1), (2) and (4) for the words “occupational pension” in each place where they occur there shall be substituted the words “occupational or personal pension”.

(2) In subsection (3) of that section (definitions) for the definition of “payments by way of occupational pension” there shall be substituted—

““payments by way of occupational or personal pension” means, in relation to a person, periodical payments which, in connection with the coming to an end of an employment of his, fall to be made to him—

(a) out of money provided wholly or partly by the employer or under arrangements made by the employer; or

(b) out of money provided under an enactment or instrument having the force of law in any part of the United Kingdom or elsewhere; or

(c) under a personal pension scheme as defined in section 84(1) of the [1986 c. 50.] Social Security Act 1986; or

(d) under a contract or trust scheme approved under Chapter III of Part XIV of the [1988 c. 1.] Income and Corporation Taxes Act 1988; or

(e) under a personal pension scheme approved under Chapter IV of that Part of that Act,

and such other payments as are prescribed.”

(3) In sections 47B and 66A of the principal Act (earnings to include occupational pensions for the purposes of certain benefits) for the words “occupational pension” in each place where they occur there shall be substituted the words “occupational or personal pension”.

(4) In Schedule 20 to that Act (glossary of expressions) in the entry relating to “payments by way of occupational pension” for the words “occupational pension” there shall be substituted the words “occupational or personal pension”.

10 Unemployment benefit: requirement to seek employment actively

(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)”.

11 Requalification for unemployment benefit

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.”

12 Disqualification for unemployment benefit

(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 Exemptions from disqualification for unemployment benefit

(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—

(a) the day on which any such period shall be regarded as having commenced in any case;

(b) the shortest and longest periods which may be so determined in any case; and

(c) 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—

(a) make provision for the purpose of determining the day on which a person’s employment is to be regarded as commencing; and

(b) 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 [S.I. 1988/487.] 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

13 Income support and unemployment

(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;”.

14 Housing benefit to take the form of payments or reductions

(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.

15 Housing benefit subsidy

(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.”

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

(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—

(a) rent rebates, rate rebates and rent allowances, within the meaning of Part II of the 1982 Act; and

(b) 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 [S. I. 1983/1399.] 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

17 Rectification of mistakes in up-rating orders

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

“63A Rectification of mistakes in orders under section 63

(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 [1988 c. 7.] 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.

18 Effect of alteration in the component rates of income support

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

“64A Effect of alteration in the component rates of income support

(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—

(a) in relation to—

(i) the component rates of income support, or

(ii) 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

(b) in relation to a person’s benefit income, the alteration of any of the sums referred to in section 63(1) above—

(i) by any enactment, or

(ii) 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—

(a) benefit under the benefit Acts, other than income support; or

(b) 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—

(a) any of the sums specified in regulations under section 22(1) above; or

(b) 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

19 Unauthorised disclosure of information relating to particular persons

(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;