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(1) Contributory benefits under this Part of this Act are of the following descriptions, namely—
(a) unemployment benefit (with increase for adult and, where the beneficiary is over pensionable age, child dependants);
(b) sickness benefit (with increase for adult and, where the beneficiary is over pensionable age, child dependants);
(c) invalidity benefit, comprising—
(i) invalidity pension under section 33, 40 or 41 below (with increase for adult and child dependants);
(ii) invalidity allowance;
(d) maternity allowance (with increase for adult dependants);
(e) widow’s benefit, comprising—
(i) widow’s payment;
(ii) widowed mother’s allowance (with increase for child dependants);
(iii) widow’s pension;
(f) retirement pensions of the following categories—
(i) Category A, payable to a person by virtue of his own contributions (with increase for adult and child dependants); and
(ii) Category B, payable to a woman by virtue of her husband’s contributions or payable to a man by virtue of his late wife’s contributions (with increase for child dependants);
(g) for existing beneficiaries only, child’s special allowance.
(2) In this Act—
“long-term benefit” means—
an invalidity pension under section 33, 40 or 41 below;
a widowed mother’s allowance;
a widow’s pension; and
a Category A or Category B retirement pension; and
“short-term benefit” means—
unemployment benefit;
sickness benefit; and
maternity allowance.
(3) The provisions of this Part of this Act are subject to the provisions of Part III of the Pensions Act (contracting-out - reduced rates of benefit).
(1) Entitlement to any of the benefits specified in section 20(1) above, other than invalidity benefit, depends on contribution conditions being satisfied (either by the claimant or by some other person, according to the particular benefit).
(2) The class or classes of contribution which, for the purposes of subsection (1) above, are relevant in relation to each of those benefits are as follows—
| Unemployment benefit | Class 1 |
| Sickness benefit | Class 1 or 2 |
| Maternity allowance | Class 1 or 2 |
| Widow’s payment | Class 1, 2 or 3 |
| Widowed mother’s allowance | Class 1, 2 or 3 |
| Widow’s pension | Class 1, 2 or 3 |
| Category A retirement pension | Class 1, 2 or 3 |
| Category B retirement pension | Class 1, 2 or 3 |
| Child’s special allowance | Class 1, 2 or 3 |
(3) The relevant contribution conditions in relation to the benefits specified in subsection (2) above are those specified in Part I of Schedule 3 to this Act.
(4) Part II of Schedule 3 to this Act shall have effect as to the satisfaction of contribution conditions for benefit, other than maternity allowance, in certain cases where a claim for a short-term benefit or a widow’s payment is, or has on a previous occasion been, made in the first or second year after that in which the contributor concerned first became liable for primary Class 1 or Class 2 contributions.
(5) In subsection (4) above and Schedule 3 to this Act—
(a) “the contributor concerned”, for the purposes of any contribution condition, means the person by whom the condition is to be satisfied;
(b) “a relevant class”, in relation to any benefit, means a class of contributions specified in relation to that benefit in subsection (2) above;
(c) “the earnings factor”—
(i) where the year in question is 1987-88 or any subsequent tax year, means, in relation to a person, the aggregate of his earnings factors derived from all his earnings upon which primary Class 1 contributions have been paid or treated as paid and from his Class 2 and Class 3 contributions; and
(ii) where the year in question is any earlier tax year, means, in relation to a person’s contributions of any class or classes, the aggregate of his earnings factors derived from all those contributions;
(d) except in the expression “benefit year”, “year” means a tax year.
(6) In this Part of this Act “benefit year” means a period—
(a) beginning with the first Sunday in January in any calendar year, and
(b) ending with the Saturday immediately preceding the first Sunday in January in the following calendar year;
but for any prescribed purposes of this Part of this Act “benefit year” may by regulations be made to mean such other period (whether or not a period of 12 months) as may be specified in the regulations.
(1) A person shall, for the purposes specified in subsection (2) below, be treated as having annual earnings factors derived—
(a) in the case of 1987-88 or any subsequent tax year, from those of his earnings upon which primary Class 1 contributions have been paid or treated as paid and from Class 2 and Class 3 contributions; and
(b) in the case of any earlier tax year, from his contributions of any of Classes 1, 2 and 3;
but subject to the following provisions of this section and those of section 23 below.
(2) The purposes referred to in subsection (1) above are those of—
(a) establishing, by reference to the satisfaction of contribution conditions, entitlement to any benefit specified in section 20(1) above, other than maternity allowance; and
(b) calculating the additional pension in the rate of a long-term benefit.
(3) Separate earnings factors may be derived for 1987-88 and subsequent tax years—
(a) from earnings upon which primary Class 1 contributions have been paid or treated as paid;
(b) from earnings which have been credited;
(c) from contributions of different classes paid or credited in the same tax year;
(d) by any combination of the methods mentioned in paragraphs (a) to (c) above,
and may be derived for any earlier tax year from contributions of different classes paid or credited in the same tax year, and from contributions which have actually been paid, as opposed to those not paid but credited.
(4) Subject to regulations under section 19(4) to (6) above, no earnings factor shall be derived—
(a) for 1987-88 or any subsequent tax year, from earnings upon which primary Class 1 contributions are paid at the reduced rate, or
(b) for any earlier tax year, from primary Class 1 contributions paid at the reduced rate or from secondary Class 1 contributions.
(5) Regulations may provide for crediting—
(a) for 1987-88 or any subsequent tax year, earnings or Class 2 or Class 3 contributions, or
(b) for any earlier tax year, contributions of any class,
for the purpose of bringing a person’s earnings factor for that tax year to a figure which will enable him to satisfy contribution conditions of entitlement to any prescribed description of benefit (whether his own entitlement or another person's).
(6) 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.
(7) The [1977 c. 5.] power to amend regulations made before 30th March 1977 (the passing of the Social Security (Miscellaneous Provisions) Act 1977) under subsection (5) above may be so exercised as to restrict the circumstances in which and the purposes for which a person is entitled to credits in respect of weeks before the coming into force of the amending regulations; but not so as to affect any benefit for a period before the coming into force of the amending regulations if it was claimed before 18th March 1977.
(1) Earnings factors derived as mentioned in section 22(1)(a) above, including earnings factors as increased by any order under section 148 of the Administration Act—
(a) shall be expressed, subject to subsection (2) below, as whole numbers of pounds; and
(b) shall be made ascertainable from tables or rules to be drawn up by the Secretary of State and embodied in regulations.
(2) Subsection (1) above does not require earnings factors in respect of the tax year 1978-79 or any subsequent tax year which have been revalued for the purpose of calculating guaranteed minimum pensions under the Pensions Act to be expressed as whole numbers of pounds.
(3) The tables and rules referred to in subsection (1) above shall be drawn up so that, in general—
(a) in respect of the tax year 1987-88 and any subsequent tax year, the amount of earnings upon which primary Class 1 contributions have been paid or treated as paid gives rise, subject to subsection (4) below, to an earnings factor for that year equal or approximating to the amount of those earnings; and
(b) any number of Class 2 or Class 3 contributions in respect of a tax year gives rise to an earnings factor for that tax year equal or approximating to that year’s lower earnings limit for Class 1 contributions multiplied by the number of contributions.
(4) The Secretary of State may by regulations make such modifications of subsection (3)(a) above as appear to him to be appropriate in consequence of section 8(2) above.
(1) Regulations may provide for requiring persons to maintain, in such form and manner as may be prescribed, records of such earnings paid by them as are relevant for the purpose of calculating earnings factors, and to retain such records for so long as may be prescribed.
(2) Where the Secretary of State is satisfied that records of earnings relevant for the purpose of calculating a person’s earnings factors for the tax year 1987-88 or any subsequent tax year 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.
(1) Subject to the provisions of this section, a person who satisfies any of the three conditions of subsection (2) below shall be entitled to unemployment benefit in respect of any day of unemployment which forms part of a period of interruption of employment.
(2) The conditions of this subsection are that—
(a) the person is under pensionable age on the day in question and satisfies the contribution conditions specified for unemployment benefit in Schedule 3, Part I, paragraph 1; or
(b) on that day the person—
(i) is over pensionable age, but not more than 5 years over that age; and
(ii) would be entitled to a Category A retirement pension if his entitlement had not been deferred or if he had not made an election under section 54(1) below; or
(c) on that day the person—
(i) is over pensionable age, but not more than 5 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.
(3) A person shall not be entitled to unemployment benefit for the first 3 days of any period of interruption of employment.
(4) In the case of a person entitled under paragraph (a) of subsection (2) above unemployment benefit shall be payable at the weekly rate specified in Schedule 4, Part I, paragraph 1.
(5) In the case of any person over pensionable age who is entitled under paragraph (b) or (c) of subsection (2) above, unemployment benefit shall be payable at the weekly rate at which the retirement pension referred to in the applicable paragraph of that subsection would have been payable; but in determining that rate for the purposes of this subsection any increase specified in subsection (6) below shall be disregarded.
(6) The increases to be disregarded for the purposes of subsection (5) above are the following—
(a) any increase (for invalidity) under section 47(1) below;
(b) any increase (for married women) under section 53(2) below or (for deferred retirement) under Schedule 5 to this Act;
(c) any increase (for dependants) under section 80, 83 or 85 below; and
(d) any increase (for Category A or Category B pensioners) under section 150 of the Administration Act (annual up-rating).
(7) The amount payable by way of benefit under this section for any day of unemployment shall be one sixth of the appropriate weekly rate.
(1) A person who, in respect of any period of interruption of employment, has been entitled to unemployment benefit for 312 days shall not thereafter be entitled to that benefit for any day of unemployment (whether in the same or a subsequent period of interruption of employment) unless before that day he has requalified for benefit.
(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.
(3) 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.
(4) 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.
(5) Where a person requalifies for unemployment benefit, subsection (1) above shall again apply to him but, in a case where the period of interruption of employment in which he exhausted his right to that benefit continues after his requalification, as if the part before and the part after his requalification were distinct periods of interruption of employment.
(6) Regulations may provide for a person who would be entitled to unemployment benefit but for the operation of any provision of this Act or of regulations disentitling him to it or disqualifying him for it to be treated as if entitled to it for the purposes of this section.
(1) Subject to the following provisions of this section—
(a) an employed earner who has lost employment as an employed earner by reason of a stoppage of work due to a trade dispute at his place of employment is disqualified for receiving unemployment benefit for any day during the stoppage unless he proves that he is not directly interested in the dispute; and
(b) an employed earner who has withdrawn his labour in furtherance of a trade dispute, but does not fall within paragraph (a) above, is disqualified for receiving unemployment benefit for any day on which his labour remains withdrawn.
(2) A person disqualified under subsection (1)(a) above for receiving unemployment benefit shall cease to be so disqualified if he proves that during the stoppage—
(a) he has become bona fide employed elsewhere; or
(b) his employment has been terminated by reason of redundancy within the meaning of section 81(2) of the [1978 c. 44.] Employment Protection (Consolidation) Act 1978; or
(c) he has bona fide resumed employment with his employer but has subsequently left for a reason other than the trade dispute.
(3) In this Act—
(a) “place of employment” in relation to any person, means the factory, workshop, farm or other premises or place at which he was employed, so however that, where separate branches of work which are commonly carried on as separate businesses in separate premises or at separate places are in any case carried on in separate departments on the same premises or at the same place, each of those departments shall for the purposes of this paragraph be deemed to be a separate factory or workshop or farm or separate premises or a separate place, as the case may be;
(b) “trade dispute” means any dispute between employers and employees, or between employees and employees, which is connected with the employment or non-employment or the terms of employment or the conditions of employment of any persons, whether employees in the employment of the employer with whom the dispute arises, or not.
(1) Subject to section 29 below a person shall be disqualified for receiving unemployment benefit for such period not exceeding 26 weeks as may be determined in accordance with Part II of the Administration Act if—
(a) he has lost his employment as an employed earner through his misconduct, or has voluntarily left such employment without just cause;
(b) after a situation in any employment has been properly notified to him as vacant or about to become vacant, he has without good cause refused or failed to apply for that situation or refused to accept that situation when offered to him;
(c) he has without good cause neglected to avail himself of a reasonable opportunity of employment;
(d) he has without good cause refused or failed to carry out any official recommendations given to him with a view to assisting him to find employment, being recommendations which were reasonable having regard to his circumstances and to the means of obtaining that employment usually adopted in the district in which he resides;
(e) he has lost his place on an approved training scheme through his misconduct, or has voluntarily left such a place without good cause;
(f) after a place on an approved training scheme has been properly notified to him as vacant or about to become vacant, he has without good cause refused or failed to apply for that place or refused to accept that place when offered to him; or
(g) he has without good cause neglected to avail himself of a reasonable opportunity of a place on an approved training scheme.
(2) The Secretary of State may by order substitute a shorter period for the period for the time being mentioned in subsection (1) above.
(3) Regulations may also provide for imposing, in the case of any prescribed category of persons—
(a) additional conditions with respect to the receipt of unemployment benefit; and
(b) restrictions on the rate and duration of unemployment benefit,
if, having regard to special circumstances, it appears to the Secretary of State necessary to do so for the purpose of preventing inequalities, or injustice to the general body of employed earners, or of earners generally, as the case may be.
(4) For the purposes of this section a person who has been dismissed by his employer by reason of redundancy within the meaning of section 81(2) of the [1978 c. 44.] Employment Protection (Consolidation) Act 1978 after volunteering or agreeing so to be dismissed shall not be deemed to have left his employment voluntarily.
(5) 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.
(6) For the purposes of this section—
(a) “properly notified”, in subsection (1)(b) and (f) above, means notified by the Secretary of State, a local education authority or some other recognised agency, or by or on behalf of an employer;
(b) “official recommendations”, in subsection (1)(d) above, means recommendations in writing made by an officer of a local education authority or the Secretary of State;
(c) “approved training scheme”, in subsection (1)(e), (f) and (g) above, means a scheme under which persons—
(i) are trained for employment; or
(ii) acquire work-experience for the purpose of becoming or keeping fit for entry to or return to regular employment,
and which is approved by the Secretary of State for the purposes of this section;
(d) “local education authority”, in relation to Scotland, means an education authority, that is to say, a regional or islands council; and
(e) “week” means any period of 7 days.
(1) Nothing in section 28 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 28 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 28 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 12 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.
(1) If payments by way of occupational or personal pension which in the aggregate exceed the maximum sum are made for any week to a person who has attained the age of 55, the rate of any unemployment benefit to which apart from this section he is entitled for that week shall be reduced by 10 pence for each 10 pence of the excess; and in this subsection “the maximum sum” means such sum not less than £35 as is prescribed.
(2) Where a reduction in the rate of unemployment benefit payable to a person falls to be made under this section the reduction shall be made, so far as is necessary—
(a) initially against so much of the benefit as falls to be paid by virtue of section 25(4) or (5) above or of regulations under section 60 below;
(b) then against any increase in the benefit payable under section 82 below; and
(c) finally against any increase in the benefit payable under section 80 below.
(3) Regulations may provide—
(a) for such sums as are specified in or determined under the regulations to be disregarded for the purposes of this section;
(b) for securing that no reduction in pursuance of subsection (1) above is made in the unemployment benefit for any day before the day which in pursuance of the regulations is treated as that on which relevant payments by way of occupational or personal pension begin;
(c) for this section to apply, in cases where—
(i) a lump sum is paid to a person in connection with a former employment of his or arrangements are made for a lump sum to be so paid; or
(ii) benefits of any description are made available to a person in connection with a former employment of his or arrangements are made for them to be made so available; or
(iii) payments by way of occupational or personal pension to a person are assigned, reduced or postponed or are made otherwise than weekly,
as if there were made to the person such weekly payments by way of occupational or personal pension as are specified in or determined under the regulations;
(d) for the method of determining whether payments by way of occupational or personal pension are made to a person for any week and the amount of any such payments which are so made;
(e) for section 26(1) above and section 57(1) below to have effect, in relation to a person whose rate of unemployment benefit is reduced by virtue of this section, with such modifications as are prescribed.
(4) In this section—
“employer” means—
in relation to an employment under a contract of service, the employer under the contract;
in relation to an employment in an office with emoluments, the person responsible for paying the emoluments;
“employment” means an employment under a contract of service or in an office with emoluments;
“modifications” includes additions, omissions and amendments;
and the reference in subsection (1) above to unemployment benefit includes any increase of the benefit on account of dependants.
(1) Subject to the provisions of this section, a person who satisfies any of the three conditions of subsection (2) below shall be entitled to sickness benefit in respect of any day of incapacity for work which forms part of a period of interruption of employment.
(2) The conditions of this subsection are that—
(a) the person is under pensionable age on the day in question and satisfies the contribution conditions specified for sickness benefit in Schedule 3, Part I, paragraph 2; or
(b) on that day the person—
(i) is over pensionable age, but not more than 5 years over that age; and
(ii) would be entitled to a Category A retirement pension if his entitlement had not been deferred or if he had not made an election under section 54(1) below; or
(c) on that day the person—
(i) is over pensionable age, but not more than 5 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.
(3) Subsection (1) above is subject to the provision made by section 102 below in relation to entitlement to sickness benefit in cases of industrial injury.
(4) A person shall not be entitled to sickness benefit for the first 3 days of any period of interruption of employment.
(5) In the case of a person entitled under paragraph (a) of subsection (2) above (including a person entitled by virtue of that paragraph and section 102 below) sickness benefit shall be payable at the weekly rate specified in Schedule 4, Part I, paragraph 2.
(6) In the case of any person over pensionable age who is entitled under paragraph (b) or (c) of subsection (2) above, sickness benefit shall be payable at the weekly rate at which the retirement pension referred to in the applicable paragraph of that subsection would have been payable; but in determining that rate for the purposes of this subsection any increase specified in subsection (7) below shall be disregarded.
(7) The increases to be disregarded for the purposes of subsection (6) above are the following—
(a) any increase (for married women) under section 53(2) below or (for deferred retirement) under Schedule 5 to this Act;
(b) any increase (for dependants) under section 80, 83 or 85 below; and
(c) any increase (for Category A or Category B pensioners) under section 150 of the Administration Act (annual up-rating).
(8) The amount payable by way of benefit under this section for any day of incapacity for work shall be one-sixth of the appropriate weekly rate.
(1) Regulations may provide for disqualifying a person for receiving sickness benefit for such period not exceeding 6 weeks as may be determined in accordance with Part II of the Administration Act if—
(a) he has become incapable of work through his own misconduct; or
(b) he fails without good cause to attend for, or to submit himself to, such medical or other examination or treatment as may be required in accordance with the regulations, or to observe any prescribed rules of behaviour.
(2) Regulations may also provide for imposing, in the case of any prescribed category of persons—
(a) additional conditions with respect to the receipt of sickness benefit; and
(b) restrictions on the rate and duration of sickness benefit,
if, having regard to special circumstances, it appears to the Secretary of State necessary to do so for the purpose of preventing inequalities, or injustice to the general body of employed earners, or of earners generally, as the case may be.
(3) For the purposes of this section “week” means any period of 7 days.
Social Security Contributions and Benefits Act 1992