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The Guardian’s Allowance Up-rating Order 2012

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Statutory Instruments

2012 No. 834

Social Security

The Guardian’s Allowance Up-rating Order 2012

Made

14th March 2012

Coming into force

9th April 2012

Following a review in the tax year ending with 5th April 2012 of the sums specified in section 150(1)(a)(i) and (i) of the Social Security Administration Act 1992(1) (“the 1992 Act”) (annual up-rating of benefits) the Treasury have determined that the general level of prices in Great Britain is greater at the end of the period under review than it was at the beginning.

In accordance with sections 150(2)(a) and (c) and 190(1)(a) of the 1992 Act, a draft of this Order was laid before and approved by a resolution of each House of Parliament.

Accordingly the Treasury make the following Order in exercise of the powers conferred by sections 150(9) and (10)(a)(i) and 189(4) of the 1992 Act and now vested in them(2).

Citation and commencement

1.  This Order may be cited as the Guardian’s Allowance Up-rating Order 2012 and comes into force on 9th April 2012.

Amendment of Schedule 4 to the Social Security Contributions and Benefits Act 1992

2.  In paragraph 5 of Part 3 of Schedule 4 to the Social Security Contributions and Benefits Act 1992(3) (weekly rate of guardian’s allowance) for “£14.75” substitute “£15.55”.

Child benefit

3.  In regulation 2(1) of the Child Benefit (Rates) Regulations 2006(4)—

(a)in sub-paragraph (a)(enhanced rate), the sum “£20.30” remains unchanged; and

(b)in sub-paragraph (b)(other cases), the sum “£13.40” remains unchanged.

Michael Fabricant

James Duddridge

Two of the Lords Commissioners for Her Majesty’s Treasury

14th March 2012

EXPLANATORY NOTE

(This note is not part of the Order)

This Order is made by the Treasury following a review of the general level of prices conducted under section 150 of the Social Security Administration Act 1992 (c. 5) in the tax year ending 5th April 2012.

The weekly rate of guardian’s allowance was last amended by the Guardian’s Allowance Up-rating Order 2011 (S.I. 2011/1029).

Article 2 increases the weekly rate of guardian’s allowance prescribed by paragraph 5 of Part 3 of Schedule 4 to the Social Security Contributions and Benefits Act 1992 (c. 4) from £14.75 to £15.55 with effect from 9th April 2012.

Article 3 states that no change is made in relation to the rates of child benefit which were substituted in regulation 2(1) of the Child Benefit (Rates) Regulations 2006 (S.I. 2006/965) by the Child Benefit Up-rating Order 2010 (S.I. 2010/982). This statement is required by virtue of section 150(2)(c) of the Social Security Administration Act 1992.

A full Impact Assessment has not been produced for this instrument as no impact on the private or voluntary sector is foreseen.

(2)

The functions of the Secretary of State under Part 10 of the 1992 Act (review and alteration of benefits: Great Britain) so far as relating to child benefit and guardian’s allowance were transferred to the Treasury by section 49(3) of the Tax Credits Act 2002 (c. 21).

(3)

1992 c. 4. This paragraph was last amended by S.I. 2011/1029.

(4)

S.I. 2006/965. The figures for the rates of child benefit that remain unchanged in regulation 2(1) of the Child Benefit (Rates) Regulations 2006 (“the Rates Regulations”) were substituted by the Child Benefit Up-rating Order 2010 (S.I. 2010/982). Article 3 of this Order contains a statement in relation to child benefit required by section 150(2)(c) of the 1992 Act.

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