Social Security Contributions and Benefits (Northern Ireland) Act 1992

Part IIN.I. Contributory Benefits

PreliminaryN.I.

20 Descriptions of contributory benefits.N.I.

(1)Contributory benefits under this Part of this Act are of the following descriptions, namely—

F1(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F2(b)incapacity benefit, comprising—

(i)short-term incapacity benefit; and

(ii)long-term incapacity benefit;]

(d)maternity allowance F3... ;

(e)widow’s benefit, comprising—

F4(i). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(ii)widowed mother’s allowanceF5...;

(iii)widow’s pension;

[F6(ea)bereavement benefits, comprising—

(i)bereavement payment;

(ii)widowed parent’s allowanceF5...;

(iii)bereavement allowance;]

(f)retirement pensions of the following categories—

(i)Category A, payable to a person by virtue of his own contributions (with increase for adult F7... dependants); and

[F8(ii)Category B, payable to a person by virtue of the contributions of a spouse [F9or civil partner] F5... ;]

[F10(fa)shared additional pensions;]

(g)for existing beneficiaries only, child’s special allowance.

(2)In this Act—

• “long-term benefit” means—

  (a)

  [F11long-term incapacity benefit;]

  (b)

  a widowed mother’s allowance;

[F12(ba)a widowed parent’s allowance;

(bb)a bereavement allowance;]

(c)a widow’s pension; and

(d)a Category A or Category B retirement pension; and

[F13(e)a shared additional pension;]

• “short-term benefit” means—

  (a)

  F14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F15(b)short-term incapacity benefit; and]

(c)maternity allowance.

(3)The provisions of this Part of this Act are subject to the provisions of [F16Chapter II of Part III of the Pensions Act (reduction in state scheme contributions and social security benefits for members of certified schemes)].

21 Contribution conditions.N.I.

(1)Entitlement to any benefit specified in section 20(1) above, [F17other than [F18short-term incapacity benefit under subsection (1)(b) of section 30A below,] long-term incapacity benefit under section [F19subsection (5) of that section][F20, maternity allowance under section 35 [F21or 35B] below] or short-term or long-term incapacity benefit under section 40 or 41 below][F22or a shared additional pension under section 55A below], 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—

(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 [F29, other than maternity allowance,] in certain cases where a claim for short-term benefit or a [F30bereavement 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 [F31so much of his earnings as did not exceed the upper earnings limit and] 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.

[F32(5A)Where primary Class 1 contributions have been paid or treated as paid on any part of a person’s earnings, the following provisions, namely—

(a)subsection (5)(c) above;

(b)sections 22(1)(a) [F33, (2A)] and (3)(a), 23(3)(a), 24(2)(a), [F3444(6)(za) and (a)] F35... below; and

(c)paragraphs 2(4)(a) and (5)(a), 4(2)(a), 5(2)(b) and (4)(a) [F36, 5A(3)(a)] and 7(4)(a) of Schedule 3 to this Act,

shall have effect as if such contributions had been paid or treated as paid on so much of the earnings as did not exceed the upper earnings limit.]

(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.

22 Earnings factors.N.I.

(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 [F37so much of his earnings as did not exceed the upper earnings limit and] 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 [F38a contribution-based jobseeker’s allowance [F39, to a contributory employment and support allowance] or 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.

[F40(2A)For the purpose specified in subsection (2)(b) above, in the case of the first appointed year or any subsequent tax year a person’s earnings factor shall be treated as derived only from [F37so much of his earnings as did not exceed [F41the applicable limit] and] on which primary Class 1 contributions have been paid or treated as paid.

[F42This subsection does not affect the operation of sections 44A and 44B below (deemed earnings factors).]]

[F43(2B)“The applicable limit” means—

(a)in relation to a tax year before [F442009–10], the upper earnings limit;

(b)in relation to [F442009–10] or any subsequent tax year, the upper accrual point.]

(3)Separate earnings factors may be derived for 1987-88 and subsequent tax years—

(a)from earnings [F45not exceeding the upper earnings limit] 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 [F46in respect of 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 [F38a contribution-based jobseeker’s allowance [F47, to a contributory employment and support allowance] or to] any prescribed description of benefit (whether his own entitlement or another person’s).

[F48(5A)Section 23A below makes provision for the crediting of Class 3 contributions for the purpose of determining entitlement to the benefits to which that section applies.]

(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 M1power to amend regulations made before 30th March 1977 (the making of the Social Security (Miscellaneous Provisions) (Northern Ireland) Order 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.

[F49(8)In this section, “contributory employment and support allowance” means a contributory allowance under Part 1 of the Welfare Reform Act (Northern Ireland) 2007 (employment and support allowance).]

[F50(9)References in this Act or any other statutory provision to earnings factors derived from so much of a person's earnings as do not exceed the upper accrual point or the upper earnings limit are to be read, in relation to earners paid otherwise than weekly, as references to earnings factors derived from so much of those earnings as do not exceed the prescribed equivalent.]

23 Provisions supplemental to ss. 21 and 22.N.I.

(1)Earnings factors derived as mentioned in section [F5122(1)] above, including earnings factors as increased by any order under section 130 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 Department 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 Order [F52or 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 [F53not exceeding the upper earnings limit] upon which primary Class 1 contributions have been paid or treated as paid gives rise, subject to [F54subsections (3A) and] (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.

[F55(3A)For the purposes specified in section 22(2)(b) (additional pension), subsection (3)(a) has effect in relation to 2009–10 and subsequent tax years as if the reference to the upper earnings limit were to the upper accrual point.]

(4)The Department may by regulations make such modifications of subsection (3)(a) above as appear to the Department to be appropriate in consequence of section 8(2) above.

[F5623AContributions credits for relevant parents and carersN.I.

(1)This section applies to the following benefits—

(a)a Category A retirement pension in a case where the contributor concerned attains pensionable age on or after 6th April 2010,

(b)a Category B retirement pension payable by virtue of section 48A below in a case where the contributor concerned attains pensionable age on or after that date,

(c)a Category B retirement pension payable by virtue of section 48B below in a case where the contributor concerned dies on or after that date without having attained pensionable age before that date,

(d)a widowed parent's allowance payable in a case where the contributor concerned dies on or after that date,

(e)a bereavement allowance payable in a case where the contributor concerned dies on or after that date.

(2)The contributor concerned in the case of a benefit to which this section applies shall be credited with a Class 3 contribution for each week falling after 6th April 2010 in respect of which the contributor was a relevant carer.

(3)A person is a relevant carer in respect of a week if the person—

(a)is awarded child benefit for any part of that week in respect of a child under the age of 12,

(b)is a foster parent for any part of that week, or

(c)is engaged in caring, within the meaning given by regulations, in that week.

(4)Regulations may make provision for a person's entitlement to be credited with Class 3 contributions by virtue of falling within subsection (3)(b) or (c) above to be conditional on the person—

(a)applying to be so credited in accordance with the prescribed requirements, and

(b)complying with the prescribed requirements as to the provision of information to the Department [F57or to the Commissioners for Her Majesty’s Revenue and Customs].

(5)The contributor concerned in the case of a benefit to which this section applies shall be credited with 52 Class 3 contributions for each tax year ending before 6th April 2010 in which the contributor was precluded from regular employment by responsibilities at home within the meaning of regulations under paragraph 5(7) of Schedule 3 to this Act.

(6)But the maximum number of tax years for which a person can be credited with contributions under subsection (5) above is—

(a)in the case of a benefit mentioned in subsection (1)(a) to (c) above, 22;

(b)in the case of a benefit mentioned in subsection (1)(d) or (e) above, half the requisite number of years of the person's working life.

(7)The table in paragraph 5(5) of Schedule 3 to this Act (requisite number of years of a working life of given duration) applies for the purposes of subsection (6)(b) above as it applies for the purposes of the second condition set out in paragraph 5(3) of that Schedule.

(8)For the purpose of determining entitlement to a benefit to which this section applies, a week that falls partly in one tax year and partly in another is to be treated as falling in the year in which it begins and not in the following year.

(9)In this section—

• “the contributor concerned” has the meaning given in section 21(5)(a) above;

• “foster parent” has the meaning given by regulations.]

24 Records of earnings and calculation of earnings factors in absence of records.N.I.

(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 Department 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, the Department may—

(a)compute, in such manner as it thinks fit, an amount which shall be regarded as the amount of [F58so much of that person’s earnings as did not exceed the upper earnings limit and] 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 it may specify in the particular case.

Unemployment benefitN.I.

F5925. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .N.I.

F6025A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .N.I.

F6125B. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .N.I.

F6226. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .N.I.

F6327. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .N.I.

F6428. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .N.I.

F6529. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .N.I.

F6630. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .N.I.

[F67Incapacity benefit]N.I.

[F6830A Incapacity benefit: entitlement.N.I.

(1)Subject to the following provisions of this section, a person who satisfies

[F69(a)either of the conditions mentioned in subsection (2) below; or

(b)if he satisfies neither of those conditions, each of the conditions mentioned in subsection (2A) below,]

is entitled to short-term incapacity benefit in respect of any day of incapacity for work [F70(“the relevant day”)] which forms part of a period of incapacity for work.

(2)The conditions [F71mentioned in subsection (1)(a) above] are that—

(a)he is under pensionable age on [F72the relevant day] and satisfies the contribution conditions specified for short-term incapacity benefit in Schedule 3, paragraph 2; or

(b)on that day he is over pensionable age but not more than 5 years over that age, the period of incapacity for work began before he attained pensionable age, and—

(i)he 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

(ii)he would be entitled to a Category B retirement pension by virtue of the contributions of his deceased spouse [F73or deceased civil partner], but for any such deferment or election.

[F74(2A)The conditions mentioned in subsection (1)(b) above are that—

(a)he is aged 16 or over on the relevant day;

(b)he is under the age of 20 or, in prescribed cases, 25 on a day which forms part of the period of incapacity for work;

(c)he was incapable of work throughout a period of 196 consecutive days immediately preceding the relevant day, or an earlier day in the period of incapacity for work on which he was aged 16 or over;

(d)on the relevant day he satisfies the prescribed conditions as to residence in Northern Ireland, or as to presence there; and

(e)he is not, on that day, a person who is receiving full-time education.]

(3)A person is not entitled to short-term incapacity benefit [F75under subsection (1)(a) above] for the first 3 days of any period of incapacity for work.

(4)In any period of incapacity for work a person is not entitled to short-term incapacity benefit for more than 364 days.

(5)Where a person ceases by virtue of subsection (4) above to be entitled to short-term incapacity benefit, he is entitled to long-term incapacity benefit in respect of any subsequent day of incapacity for work in the same period of incapacity for work on which he is not over pensionable age.

[F76(6)Regulations may provide that persons who have previously been entitled to incapacity benefit shall, in prescribed circumstances, be entitled to short-term incapacity benefit under subsection (1)(b) above notwithstanding that they do not satisfy the condition set out in paragraph (b) of subsection (2A) above.

(7)Regulations may prescribe the circumstances in which a person is or is not to be treated as receiving full-time education for the purposes of paragraph (e) of subsection (2A) above.]]

[F7730B Incapacity benefit: rate.N.I.

(1)The amount payable by way of incapacity benefit in respect of any day is 1/7th of the appropriate weekly rate.

(2)Subject to the following provisions of this section the weekly rate of short-term incapacity benefit is the lower or higher rate specified in Schedule 4, Part I, paragraph 2.

(3)In the case of a person over pensionable age the weekly rate of short-term incapacity benefit is, subject to subsection (4) below, that at which the relevant retirement pension referred to in section 30A(2)(b) above would have been payable.

(4)In the case of a person who has been entitled to short-term incapacity benefit for 196 days or more in any period of incapacity for work and—

(a)is terminally ill; or

(b)is entitled to the highest rate of the care component of disability living allowance,

the weekly rate of short-term incapacity benefit payable, if greater than the rate otherwise payable to him under subsection (2) or (3) above, shall be equal to the rate at which long-term incapacity benefit under section 30A above would be payable to him if he were entitled to it.

(5)References to short-term incapacity benefit at the higher rate shall be construed as including short-term incapacity benefit payable to any person who has been entitled to that benefit for 196 days or more in a period of incapacity for work, notwithstanding that the rate of benefit is determined in accordance with subsection (3) or (4) above.

(6)Subject as follows, the weekly rate of long-term incapacity benefit under section 30A above is that specified in Schedule 4, Part I, paragraph 2A.

(7)Regulations may provide that if a person is, on the qualifying date in relation to a period of incapacity for work, under such age as may be prescribed, the rate of long-term incapacity benefit under section 30A above payable to him in respect of any day in that period shall be increased by such amount as may be prescribed.

[F8130C Incapacity benefit: days and periods of incapacity for work.N.I.

(1)For the purposes of any provisions of this Act relating to incapacity benefit, subject to the following provisions and save as otherwise expressly provided—

(a)a day of incapacity for work means a day on which a person is incapable of work;

(b)a period of incapacity for work means a period of 4 or more consecutive days, each of which is a day of incapacity for work; and

(c)any two such periods not separated by a period of more than 8 weeks shall be treated as one period of incapacity for work.

(2)Any day which falls within the maternity allowance period (as defined in section 35(2) below) shall be treated for the purposes of any provision of this Act relating to incapacity benefit as a day of incapacity for work unless the woman is disqualified for receiving a maternity allowance for that day by virtue of regulations under section 35(3)(a) below.

(3)Regulations may make provision (subject to the preceding provisions of this section) as to the days which are or are not to be treated as days of incapacity for work for the purposes of any provision of this Act relating to incapacity benefit.

(4)Regulations may provide—

(a)that paragraph (b) of subsection (1) above shall have effect as if the reference there to 4 consecutive days were to such lesser number of days, whether consecutive or not, within such period of consecutive days as may be specified in the regulations; and

(b)that paragraph (c) of that subsection shall have effect as if for the reference to 8 weeks there were substituted a reference to such larger number of weeks as may be specified in the regulations.

[F82(5)Where a person claims the higher rate of short-term incapacity benefit, or long-term incapacity benefit, under section 30A above for a period commencing after he has ceased to be in qualifying remunerative work (within the meaning of Part 1 of the Tax Credits Act 2002) and—

(a)the day following that on which he so ceased was a day of incapacity for work for him,

(b)he has been entitled to the higher rate of short-term incapacity benefit, or to long-term incapacity benefit, under section 30A above within the period of two years ending with that day of incapacity for work, and

(c)he satisfied the relevant tax credit conditions on the day before he so ceased,

every day during that period on which he satisfied those conditions is to be treated for the purposes of the claim as a day of incapacity for work for him.

(5A)A person satisfies the relevant tax credit conditions on a day if—

(a)he is entitled for the day to the disability element of working tax credit (on a claim made by him or by him jointly with another) or would be so entitled but for the fact that the relevant income (within the meaning of Part 1 of the Tax Credits Act 2002) in his or their case is such that he is not so entitled, and

(b)either working tax credit or any element of child tax credit other than the family element is paid in respect of the day on such a claim.]

(6)Where—

(a)a person becomes engaged in training for work; and

(b)he was entitled to the higher rate of short-term incapacity benefit, or to long-term incapacity benefit under section 30A above, for one or more of the 56 days immediately before he became so engaged; and

(c)the first day after he ceases to be so engaged is for him a day of incapacity for work and falls not later than the end of the period of two years beginning with the last day for which he was entitled to such benefit,

any day since that day in which he was engaged in training for work shall be treated for the purposes of any claim for such benefit for a period commencing after he ceases to be so engaged as having been a day of incapacity for work.

(7)For the purposes of this section “week” means any period of 7 days.]

[F8330D Incapacity benefit: construction of references to days of entitlement.N.I.

(1)The following provisions have effect in calculating for the purposes of—

(a)section 30A(4) above (length of entitlement to short-term incapacity benefit);

(b)section 30B(2) above (period after which short-term incapacity benefit is payable at higher rate);

(c)section 30B(4) above (period after which incapacity benefit is payable at long-term rate in case of terminal illness); and

(d)section 30B(5) above (construction of references to short-term incapacity benefit at the higher rate),

the number of days for which a person has been entitled to short-term incapacity benefit.

(2)There shall be included—

(a)the first 3 days of the period of incapacity for work; and

(b)in the case of a woman, any days for which she was entitled to maternity allowance.

(3)There shall also be included such days as may be prescribed in respect of which a person was entitled to statutory sick pay, and on the first of which he satisfied the contribution conditions for short-term incapacity benefit.

(4)There shall be excluded any days in respect of which a person was disqualified for receiving incapacity benefit.]

[F8530DD Incapacity benefit: reduction for pension payments [F84and PPF periodic payments].N.I.

[F86(1)Where—

(a)a person is entitled to incapacity benefit in respect of any period of a week or part of a week;

(b)there is—

(i)a pension payment;

(ii)a PPF periodic payment; or

(iii)any combination of the payments specified in sub-paragraphs (i) and (ii) above,

payable to him in respect of that period (or a period which forms part of that period or includes that period or part of it); and

(c)the amount of the payment or payments (or, as the case may be, the amount which in accordance with regulations is to be taken as payable to him by way of pension payments or PPF periodic payments in respect of that period), when taken together exceeds the threshold,

the amount of that benefit shall be reduced by an amount equal to 50 per cent. of that excess.]

(2)In subsection (1) above “the threshold” means—

(a)if the period in question is a week, £85 or such greater amount as may be prescribed; or

(b)if that period is not a week, such proportion of the amount mentioned in paragraph (a) as falls to be calculated in accordance with regulations on such basis as may be prescribed.

(3)Regulations may secure that a person of any prescribed description does not suffer any reduction under subsection (1) above in any amount of incapacity benefit to which he is entitled.

(4)Regulations may provide—

(a)for sums of any specified description to be disregarded for the purposes of this section;

(b)for sums of any specified description to be treated for those purposes as payable to persons as pension payments [F87or PPF periodic payments] (including, in particular sums in relation to which there is a deferred right of receipt);

(c)for the aggregation of sums of any specified description which are payable as pension payments [F88or PPF periodic payments] (or treated as being so payable) in respect of the same or different periods;

(d)for such sums or aggregate sums to be apportioned between or otherwise allocated to periods in respect of which persons are entitled to incapacity benefit.

(5)In this section “pension payment” means—

(a)a periodical payment made in relation to a person under a personal pension scheme or, in connection with the coming to an end of an employment of his, under an occupational pension scheme or a public service pension scheme;

(b)a payment of any specified description, being a payment made under an insurance policy providing benefits in connection with physical or mental illness, disability, infirmity or defect; or

(c)a payment of any other specified description;

and “specified” means prescribed by or determined in accordance with regulations under this section.

(6)For the purposes of subsection (5) above

• “occupational pension scheme”, “personal pension scheme” and “public service pension scheme” each has the meaning given by section 1 of the M2Pension Schemes (Northern Ireland) Act 1993, except that

• “personal pension scheme” includes [F89an annuity contract or trust scheme approved under section 620 or 621 of the Income and Corporation Taxes Act 1988, or a substituted contract within the meaning of section 622(3) of that Act, which is treated as having become a registered pension scheme by virtue of paragraph 1(1)(f) of Schedule 36 to the Finance Act 2004].]

[F9030E Incapacity benefit: reduction for councillor’s allowance.N.I.

(1)Where the net amount of councillor’s allowance to which a person is entitled in respect of any week exceeds such amount as may be prescribed, an amount equal to the excess shall be deducted from the amount of any incapacity benefit to which he is entitled in respect of that week, and only the balance remaining (if any) shall be payable.

(2)In this section “councillor’s allowance” means such payments for or in connection with the work which a person undertakes as a member of a district council as may be prescribed for the purposes of this section; and where any such payments are made otherwise than weekly, an amount calculated or estimated in accordance with regulations shall be regarded as the weekly amount of the payments.

(3)In subsection (1) above “net amount”, in relation to any councillor’s allowance to which a person is entitled, means the aggregate amount of the councillor’s allowance or allowances to which he is entitled for the week in question, reduced by the amount of any expenses incurred by him in that week in connection with his membership of the council or councils in question.]

Sickness benefitN.I.

F9131. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .N.I.

F9232. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .N.I.

Invalidity benefitsN.I.

F9333. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .N.I.

F9434. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .N.I.

MaternityN.I.

35 State maternity allowance [F95for employed or self-employed earner].N.I.

[F96(1)A woman shall be entitled to a maternity allowance [F97under this section], at the appropriate weekly rate determined under section 35A below, if—

(a)she has become pregnant and has reached, or been confined before reaching, the commencement of the 11th week before the expected week of confinement; and

(b)she has been engaged in employment as an employed or self-employed earner for any part of the week in the case of at least 26 of the 66 weeks immediately preceding the expected week of confinement; and

[F98(c)her average weekly earnings (within the meaning of section 35A below) are not less than the maternity allowance threshold for the tax year in which the beginning of the period of 66 weeks mentioned in paragraph (b) above falls;]

(d)she is not entitled to statutory maternity pay for the same week in respect of the same pregnancy.]

(2)Subject to the following provisions of this section, a maternity allowance [F97under this section] shall be payable for the period (“the maternity allowance period”) which, if she were entitled to statutory maternity pay, would be the maternity pay period under section 161 below.

(3)Regulations may provide—

(a)for disqualifying a woman for receiving a maternity allowance [F97under this section] if—

[F99(i)during the maternity allowance period, except in prescribed cases, she does any work in employment as an employed or self-employed earner;]

[F99(ia)during the maternity allowance period she fails without good cause to observe any prescribed rules of behaviour; or]

(ii)at any time before she is confined she fails without good cause to attend for, or submit herself to, any medical examination required in accordance with the regulations;

(b)that this section and [F100section 35A below] shall have effect subject to prescribed modifications in relation to cases in which a woman has been confined and—

(i)has not made a claim for a maternity allowance [F97under this section] in expectation of that confinement (other than a claim which has been disallowed); or

(ii)has made a claim for a maternity allowance [F97under this section] in expectation of that confinement (other than a claim which has been disallowed), but she was confined more than 11 weeks before the expected week of confinement.

[F101(c)that subsection (2) above shall have effect subject to prescribed modifications in relation to cases in which a woman fails to satisfy the conditions referred to in subsection (1)(b) [F102or (c) above] at the commencement of the 11th week before the expected week of confinement, but subsequently satisfies those conditions at any time before she is confined.]

(4)A woman who has become entitled to a maternity allowance [F97under this section] shall cease to be entitled to it if she dies before the beginning of the maternity allowance period; and if she dies after the beginning, but before the end, of that period, the allowance shall not be payable for any week subsequent to that in which she dies.

(5)Where for any purpose of this Part of this Act or of regulations it is necessary to calculate the daily rate of a maternity allowance [F97under this section] [F103the amount payable by way of that allowance for any day shall be taken as one seventh of the weekly rate of the allowance.]

(6)In this section “confinement” means—

(a)labour resulting in the issue of a living child, or

(b)labour after [F10424 weeks] of pregnancy resulting in the issue of a child whether alive or dead,

and “confined” shall be construed accordingly; and where a woman’s labour begun on one day results in the issue of a child on another day she shall be taken to be confined on the day of the issue of the child or, if labour results in the issue of twins or a greater number of children, she shall be taken to be confined on the day of the issue of the last of them.

[F105(6A)In this section “the maternity allowance threshold”, in relation to a tax year, means (subject to subsection (6B) below) £30.

(6B)Whenever the Secretary of State makes an order under section 35(6B) of the Great Britain Contributions and Benefits Act (increase of maternity allowance threshold), the Department may make a corresponding order for Northern Ireland.]

(7)The fact that the mother of a child is being paid maternity allowance [F106under this section] shall not be taken into consideration by any court in deciding whether to order payment of expenses incidental to the birth of the child.

[F10735A Appropriate weekly rate of maternity allowance [F108under section 35].N.I.

[F109(1)For the purposes of section 35(1) above the appropriate weekly rate is (subject to subsection (5A) below) whichever is the lower rate of—

(a)a weekly rate equivalent to 90 per cent. of the woman's average weekly earnings; and

(b)the weekly rate for the time being prescribed under section 162(1)(b) below.]

(4)For the purposes of this section a woman’s

(5)Regulations may, for the purposes of subsection (4) above, provide—

(a)for the amount of any payments falling within paragraph (a) or (b) of that subsection to be calculated or estimated in such manner and on such basis as may be prescribed;

(b)for a payment made outside the specified period to be treated as made during that period where it was referable to that period or any part of it;

(c)for a woman engaged in employment as a self-employed earner to be treated as having received a payment in respect of a week—

(i)equal to [F110an amount 90 per cent. of which is equal to the weekly rate prescribed under section 162(1)(b) below that is] in force on the last day of the week, if she [F111has] paid a Class 2 contribution in respect of the week, or

(ii)equal to the maternity allowance threshold in force on that day, if she [F112could have paid, but has not paid,] such a contribution in respect of the week;

(d)for aggregating payments made or treated as made to or for the benefit of a woman where, either in the same week or in different weeks, she was engaged in two or more employments (whether, in each case, as an employed earner or a self-employed earner).

[F113(5A)Where subsection (5B) below applies the appropriate weekly rate is the weekly rate for the time being prescribed under section 162(1)(b) below.

(5B)This subsection applies where a woman is treated by virtue of regulations under sub-paragraph (i) of paragraph (c) of subsection (5) above as having received a payment in respect of each week in the specified period equal to the amount mentioned in that sub-paragraph.]

[F114(6)In this section—

• “the maternity allowance threshold” has the same meaning as in section 35 above;

• “specified” means prescribed by or determined in accordance with regulations.]]

[F11535B.State maternity allowance for participating wife or civil partner of self-employed earnerN.I.

(1)A woman (W) shall be entitled to a maternity allowance under this section, at the weekly rate given by subsection (3), if—

(a)W has become pregnant and has reached, or been confined before reaching, the commencement of the 11th week before the expected week of confinement; and

(b)for any part of the week in the case of at least 26 of the 66 weeks immediately preceding the expected week of confinement, W has worked with a person (S) who at the time of her doing so—

(i)was her spouse or civil partner, and

(ii)was engaged in employment as a self-employed earner; and

(c)S [F116has paid] a class 2 contribution in respect of the 26 weeks referred to in paragraph (1)(b); and

(d)W is not entitled to a maternity allowance under section 35, or statutory maternity pay, for the same week in respect of the same pregnancy.

(2)In this section—

(a)a reference to W working with S is a reference to W participating in the activities engaged in by S as a self-employed earner, performing the same tasks or ancillary tasks, without being employed by S or being in partnership with S; and

(b)a reference to W ceasing to work with S is a reference to W ceasing to do so either permanently or until after her confinement.

(3)The rate of allowance under this section for any particular week is 90 per cent. of the amount of the maternity allowance threshold for the tax year in which the week ends.

(4)Subject to subsections (10) and (11), a maternity allowance under this section shall be payable for the period of 14 weeks (“the 14-week period”) beginning as set out in subsection (5), (6), (7) or (8) (whichever applies).

(5)If W ceases to work with S before the commencement of the 11th week before the expected week of confinement, the 14-week period begins with the commencement of the 11th week before the expected week of confinement.

(6)If W ceases to work with S on a day that falls within the period beginning with the commencement of the 11th week before the expected week of confinement and ending with the end of the 5th week before the expected week of confinement, the 14-week period begins immediately after that day.

(7)If on a day that falls within the period beginning with the commencement of the 4th week before the expected week of confinement and ending with the date of confinement—

(a)W ceases to work with S, or

(b)she refrains from working with S wholly or partly because of her pregnancy or confinement,

the 14-week period begins immediately after the day on which she ceases or refrains.

(8)If none of subsections (5) to (7) applies, the 14-week period begins immediately after the date of confinement.

(9)In relation to maternity allowance under this section, a reference in a provision contained in or made under any enactment to the maternity allowance period shall be read as a reference to the 14-week period.

(10)Subsections (4) to (7) of section 35 have effect for the purposes of this section as they have effect for the purposes of that section (reading references to the maternity allowance period as references to the 14-week period).

(11)Regulations under section 35 may make provision for the purposes of this section corresponding or similar to the provision that may be made by virtue of subsection (3)(a), (b) or (c) of that section.]

Benefits for widows and widowersN.I.

[F11736 Bereavement payment.N.I.

(1)A person whose spouse [F118or civil partner] dies on or after the appointed day shall be entitled to a bereavement payment if—

(a)either that person was under pensionable age at the time when the spouse [F118or civil partner] died or the spouse [F118or civil partner] was then not entitled to a Category A retirement pension under section 44 below; and

(b)the spouse [F118or civil partner] satisfied the contribution condition for a bereavement payment specified in Schedule 3, Part I, paragraph 4.

[F119(2)A bereavement payment shall not be payable to a person if—

(a)that person and a person of the opposite sex to whom that person was not married were living together as husband and wife at the time of the spouse’s or civil partner’s death, or

(b)that person and a person of the same sex who was not his or her civil partner were living together as if they were civil partners at the time of the spouse’s or civil partner’s death.]

(3)In this section “the appointed day” means the day appointed for the coming into operation of Articles 51 to 53 of the Welfare Reform and Pensions (Northern Ireland) Order 1999.]

[F12036A Cases in which sections 37 to 41 apply.N.I.

(1)Sections 37 to 39 and section 40 below apply only in cases where a woman’s husband has died before the appointed day, and section 41 below applies only in cases where a man’s wife has died before that day.

(2)Sections 39A to 39C below apply in cases where a person’s spouse [F121or civil partner] dies on or after the appointed day, but section 39A also applies (in accordance with subsection (1)(b) of that section) in cases where a man’s wife has died before that day.

(3)In this section, and in sections 39A and 39B below, “the appointed day” means the day appointed for the coming into operation of Articles 51 to 53 of the Welfare Reform and Pensions (Northern Ireland) Order 1999.]

37 Widowed mother’s allowance.N.I.

(1)A woman who has been widowed shall be entitled to a widowed mother’s allowance at the rate determined in accordance with section 39 below if her late husband satisfied the contribution conditions for a widowed mother’s allowance specified in Schedule 3, Part I, paragraph 5 and either—

(a)the woman is entitled to child benefit in respect of a child [F122or qualifying young person] falling within subsection (2) below;

(b)the woman is pregnant by her late husband; or

(c)if the woman and her late husband were residing together immediately before the time of his death, the woman is pregnant as the result of being artificially inseminated before that time with the semen of some person other than her husband, or as the result of the placing in her before that time of an embryo, of an egg in the process of fertilisation, or of sperm and eggs.

(2)A child [F123or qualifying young person] falls within this subsection if F124... the child [F125or qualifying young person] is either—

(a)a son or daughter of the woman and her late husband;

(b)a child [F126or qualifying young person] in respect of whom her late husband was immediately before his death entitled to child benefit; or

(c)if the woman and her late husband were residing together immediately before his death, a child [F126or qualifying young person] in respect of whom she was then entitled to child benefit.

(3)The widow shall not be entitled to the allowance for any period after she remarries [F127or forms a civil partnership], but, subject to that, she shall continue to be entitled to it for any period throughout which she satisfies the requirements of subsection (1)(a), (b) or (c) above.

(4)A widowed mother’s allowance shall not be payable—

(a)for any period falling before the day on which the widow’s entitlement is to be regarded as commencing for that purpose by virtue of section 5(1)(l) of the Administration Act; F128...

(b)for any period during which she and a man to whom she is not married are living together as husband and wife; [F129or

(c)for any period during which she and a woman who is not her civil partner are living together as if they were civil partners].

38 Widow’s pension.N.I.

(1)A woman who has been widowed shall be entitled to a widow’s pension at the rate determined in accordance with section 39 below if her late husband satisfied the contribution conditions for a widow’s pension specified in Schedule 3, Part I, paragraph 5 and either—

(a)she was, at the husband’s death, over the age of 45 but under the age of 65; or

(b)she ceased to be entitled to a widowed mother’s allowance at a time when she was over the age of 45 but under the age of 65.

(2)The widow shall not be entitled to the pension for any period after she remarries [F130or forms a civil partnership], but, subject to that, she shall continue to be entitled to it until she attains the age of 65.

(3)A widow’s pension shall not be payable—

(a)for any period falling before the day on which the widow’s entitlement is to be regarded as commencing for that purpose by virtue of section 5(1)(l) of the Administration Act;

(b)for any period for which she is entitled to a widowed mother’s allowance; F131...

(c)for any period during which she and a man to whom she is not married are living together as husband and wife; [F132or

(d)for any period during which she and a woman who is not her civil partner are living together as if they were civil partners].

(4)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,

subsection (1) above shall have effect as if for “45” there were substituted “ 40 ”.

39 Rate of widowed mother’s allowance and widow’s pension.N.I.

(1)The weekly rate of—

(a)a widowed mother’s allowance,

(b)a widow’s pension,

shall be determined in accordance with the provisions of [F133[F134sections 44 to] [F13545B]] below F136... as they apply in the case of a Category A retirement pension, but subject, in particular, to the following provisions of this section and section [F13746] below.

(2)In the application of [F133[F134sections 44 to] [F13545B]] below F136... by virtue of subsection (1) above—

(a)where the woman’s husband was over pensionable age when he died, references in those sections to the pensioner shall be taken as references to the husband, and

(b)where the husband was under pensionable age when he died, references in those sections to the pensioner and the tax year in which he attained pensionable age shall be taken as references to the husband and the tax year in which he died.

[F138(2A)In its application by virtue of subsection (1) above, section 44(4) below is to be read as if for the first amount specified in that provision there were substituted a reference to the amount prescribed for the purposes of this subsection.]

F139(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4)Where a widow’s pension is payable to a woman who was under the age of 55 at the time when the applicable qualifying condition was fulfilled, the weekly rate of the pension shall be reduced by 7 per cent. of what it would be apart from this subsection multiplied by the number of years by which her age at that time was less than 55 (any fraction of a year being counted as a year).

(5)For the purposes of subsection (4) above, the time when the applicable qualifying condition was fulfilled is the time when the woman’s late husband died or, as the case may be, the time when she ceased to be entitled to a widowed mother’s allowance.

(6)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,

subsection (4) above shall have effect as if for “55” there were substituted “ 50 ”.

[F14039A Widowed parent’s allowance.N.I.

(1)This section applies where—

(a)a person whose spouse [F141or civil partner] dies on or after the appointed day is under pensionable age at the time of the spouse’s [F142or civil partner's] death, or

(b)a man whose wife died before the appointed day—

(i)has not remarried before that day, and

(ii)is under pensionable age on that day.

(2)The surviving spouse [F141or civil partner] shall be entitled to a widowed parent’s allowance at the rate determined in accordance with section 39C below if the deceased spouse [F141or civil partner] satisfied the contribution conditions for a widowed parent’s allowance specified in Schedule 3, Part I, paragraph 5 and—

(a)the surviving spouse [F141or civil partner] is entitled to child benefit in respect of a child [F143or qualifying young person] falling within subsection (3) below; F144...

(b)the surviving spouse is a woman who either—

(i)is pregnant by her late husband, or

(ii)if she and he were residing together immediately before the time of his death, is pregnant in circumstances falling within section 37(1)(c) above; [F145or

(c)the surviving civil partner is a woman who—

(i)was residing together with the deceased civil partner immediately before the time of the death, and

(ii)is pregnant as the result of being artificially inseminated before that time with the semen of some person, or as a result of the placing in her before that time of an embryo, of an egg in the process of fertilisation, or of sperm and eggs].

(3)A child [F146or qualifying young person] falls within this subsection if F147... the child [F148or qualifying young person] is either—

(a)a son or daughter of the surviving spouse [F141or civil partner] and the deceased spouse [F141or civil partner]; or

(b)a child [F149or qualifying young person] in respect of whom the deceased spouse [F141or civil partner] was immediately before his or her death entitled to child benefit; or

(c)if the surviving spouse [F141or civil partner] and the deceased spouse [F141or civil partner] were residing together immediately before his or her death, a child [F149or qualifying young person] in respect of whom the surviving spouse [F141or civil partner] was then entitled to child benefit.

(4)The surviving spouse shall not be entitled to the allowance for any period after she or he remarries [F150or forms a civil partnership], but, subject to that, the surviving spouse shall continue to be entitled to it for any period throughout which she or he—

(a)satisfies the requirements of subsection (2)(a) or (b) above; and

(b)is under pensionable age.

[F151(4A)The surviving civil partner shall not be entitled to the allowance for any period after she or he forms a subsequent civil partnership or marries, but, subject to that, the surviving civil partner shall continue to be entitled to it for any period throughout which she or he—

(a)satisfies the requirements of subsection (2)(a) or (b) above; and

(b)is under pensionable age.]

(5)A widowed parent’s allowance shall not be payable—

(a)for any period falling before the day on which the surviving spouse’s [F142or civil partner's] entitlement is to be regarded as commencing by virtue of section 5(1)(l) of the Administration Act; F152...

(b)for any period during which the surviving spouse [F141or civil partner] and a person of the opposite sex to whom she or he is not married are living together as husband and wife; [F153or

(c)for any period during which the surviving spouse or civil partner and a person of the same sex who is not his or her civil partner are living together as if they were civil partners].]

[F15439B Bereavement allowance where no dependent children.N.I.

(1)This section applies where a person whose spouse [F155or civil partner] dies on or after the appointed day is over the age of 45 but under pensionable age at the spouse’s [F156or civil partner's] death.

(2)The surviving spouse [F155or civil partner] shall be entitled to a bereavement allowance at the rate determined in accordance with section 39C below if the deceased spouse [F155or civil partner] satisfied the contribution conditions for a bereavement allowance specified in Schedule 3, Part I, paragraph 5.

(3)A bereavement allowance shall be payable for not more than 52 weeks beginning with the date of the spouse’s [F156or civil partner's] death or (if later) the day on which the surviving spouse’s [F156or civil partner's] entitlement is to be regarded as commencing by virtue of section 5(1)(l) of the Administration Act.

(4)The surviving spouse shall not be entitled to the allowance for any period after she or he remarries [F157or forms a civil partnership], but, subject to that, the surviving spouse shall continue to be entitled to it until—

(a)she or he attains pensionable age, or

(b)the period of 52 weeks mentioned in subsection (3) above expires,

whichever happens first.

[F158(4A)The surviving civil partner shall not be entitled to the allowance for any period after she or he forms a subsequent civil partnership or marries, but, subject to that, the surviving civil partner shall continue to be entitled to it until—

(a)she or he attains pensionable age, or

(b)the period of 52 weeks mentioned in subsection (3) above expires,

whichever happens first.]

(5)The allowance shall not be payable—

(a)for any period for which the surviving spouse [F155or civil partner] is entitled to a widowed parent’s allowance; F159...

(b)for any period during which the surviving spouse [F155or civil partner] and a person of the opposite sex to whom she or he is not married are living together as husband and wife; [F160or

(c)for any period during which the surviving spouse or civil partner and a person of the same sex who is not his or her civil partner are living together as if they were civil partners].]

[F16139C Rate of widowed parent’s allowance and bereavement allowance.N.I.

(1)The weekly rate of a widowed parent’s allowance shall be determined in accordance with the provisions of sections 44 to [F16245AA] below [F163and Schedules 4A to 4C] [F164to this Act] as they apply in the case of a Category A retirement pension, but subject, in particular, to the following provisions of this section and section [F16546] below.

[F166(1A)In its application by virtue of subsection (1) above, section 44(4) below is to be read as if for the first amount specified in that provision there were substituted a reference to the amount prescribed for the purposes of this subsection.]

[F166(2)The weekly amount of a bereavement allowance is an amount equal to the amount prescribed for the purposes of subsection (1A) above.]

(3)In the application of sections 44 to [F16745AA] [F164below [F168and Schedules 4A to 4C] to this Act] [F169by virtue of subsection (1) above]—

(a)where the deceased spouse [F170or civil partner] was over pensionable age at his or her death, references in those [F171provisions] to the pensioner shall be taken as references to the deceased spouse [F170or civil partner], and

(b)where the deceased spouse [F170or civil partner] was under pensionable age at his or her death, references in those [F172provisions] to the pensioner and the tax year in which he attained pensionable age shall be taken as references to the deceased spouse [F170or civil partner] and the tax year in which he or she died.

(4)Where a widowed parent’s allowance is payable to a person whose spouse [F170or civil partner] dies after [F1735th October 2002], the additional pension falling to be calculated under sections 44 to [F16745AA] below [F168and Schedules 4A to 4C] [F164to this Act] by virtue of subsection (1) above shall be one half of the amount which it would be apart from this subsection.

(5)Where a bereavement allowance is payable to a person who was under the age of 55 at the time of the spouse’s [F174or civil partner's] death, the weekly rate of the allowance shall be reduced by 7 per cent. of what it would be apart from this subsection multiplied by the number of years by which that person’s age at that time was less than 55 (any fraction of a year being counted as a year).]

[F17540 Long-term incapacity benefit for widows.N.I.

(1)Subject to subsection (2) below, this section applies to a woman who—

(a)on her late husband’s death is not entitled to a widowed mother’s allowance or subsequently ceases to be entitled to such an allowance;

(b)is incapable of work at the time when he dies or when she subsequently ceases to be so entitled;

(c)either—

(i)would have been entitled to a widow’s pension if she had been over the age of 45 when her husband died or when she ceased to be entitled to a widowed mother’s allowance; or

(ii)is entitled to such a pension with a reduction under section 39(4) above; and

(d)is not entitled to incapacity benefit apart from this section.

(2)This section does not apply to a woman unless—

(a)her husband died after 5th April 1979; or

(b)she ceased to be entitled to a widowed mother’s allowance after that date (whenever her husband died).

(3)A woman to whom this section applies is entitled to long-term incapacity benefit under this section for any day of incapacity for work which—

(a)falls in a period of incapacity for work that began before the time when her late husband died or she subsequently ceased to be entitled to a widowed mother’s allowance; and

(b)is after that time and after the first 364 days of incapacity for work in that period.

(4)A woman to whom this section applies who is not entitled to long-term incapacity benefit under subsection (3) above, but who is terminally ill, is entitled to short-term incapacity benefit under this section for any day of incapacity for work which—

(a)falls in a period of incapacity for work that began before the time when her late husband died or she subsequently ceased to be entitled to a widowed mother’s allowance; and

(b)is after that time and after the first 196 days of incapacity for work in that period.

(5)The weekly rate of incapacity benefit payable under this section is—

(a)if the woman is not entitled to a widow’s pension, that which would apply if she were entitled to long-term incapacity benefit under section 30A above; and

(b)if she is entitled to a widow’s pension with a reduction under section 39(4) above, the difference between the weekly rate of that pension and the weekly rate referred to in paragraph (a) above.

(6)A woman is not entitled to incapacity benefit under this section if she is over pensionable age; but if she has attained pensionable age and the period of incapacity for work mentioned in subsection (3)(a) or (4)(a) above did not terminate before she attained that age—

(a)she shall, if not otherwise entitled to a Category A retirement pension, be entitled to such a pension; and

(b)the weekly rate of the Category A retirement pension to which she is entitled (whether by virtue of paragraph (a) above or otherwise) shall be determined in the prescribed manner.

(7)Where a woman entitled to short-term incapacity benefit under subsection (4) above attains pensionable age and defers her entitlement to a Category A retirement pension or makes an election under section 54(1) below, the days of incapacity for work falling within the period of incapacity for work mentioned in that subsection shall, for the purpose of determining any subsequent entitlement to incapacity benefit under section 30A above or the rate of that benefit, be treated as if they had been days of entitlement to short-term incapacity benefit.

(8)References to short-term incapacity benefit at the higher rate shall be construed as including short-term incapacity benefit payable under subsection (4) above.]

[F17641 Long-term incapacity benefit for widowers.N.I.

(1)This section applies to a man whose wife has died on or after 6th April 1979 and who either—

(a)was incapable of work at the time when she died; or

(b)becomes incapable of work within the prescribed period after that time;

and is not entitled to incapacity benefit apart from this section.

(2)A man to whom this section applies is entitled to long-term incapacity benefit under this section for any day of incapacity for work which—

(a)falls in a period of incapacity for work that began before the time when his wife died or within the prescribed period after that time; and

(b)is after that time and after the first 364 days of incapacity for work in that period.

(3)A man to whom this section applies who is not entitled to long-term incapacity benefit under subsection (2) above, but who is terminally ill, is entitled to short-term incapacity benefit under this section for any day of incapacity for work which—

(a)falls in a period of incapacity for work that began before the time when his late wife died or within the prescribed period after that time; and

(b)is after that time and after the first 196 days of incapacity for work in that period.

(4)The weekly rate of incapacity benefit payable under this section is that which would apply if he were entitled to long-term incapacity benefit under section 30A above.

(5)A man is not entitled to incapacity benefit under this section if he is over pensionable age; but if he has attained pensionable age, and the period of incapacity for work mentioned in subsection (2)(a) or (3)(a) above did not terminate before he attained that age—

(a)he shall, if not otherwise entitled to a Category A retirement pension and also not entitled to a Category B retirement pension by virtue of [F177the contributions of his wife], be entitled to a Category A retirement pension; and

(b)the weekly rate of the Category A retirement pension to which he is entitled (whether by virtue of paragraph (a) above or otherwise) shall be determined in the prescribed manner.

(6)Where a man entitled to short-term incapacity benefit under subsection (3) above attains pensionable age and defers his entitlement to a Category A retirement pension or makes an election under section 54(1) below, the days of incapacity for work falling within the period of incapacity for work mentioned in that subsection shall, for the purpose of determining any subsequent entitlement to incapacity benefit under section 30A above or the rate of that benefit, be treated as if they had been days of entitlement to short-term incapacity benefit.

(7)References to short-term incapacity benefit at the higher rate shall be construed as including short-term incapacity benefit payable under subsection (3) above.]

[F17842 Entitlement under s. 40 or 41 after period of employment or training for work.N.I.

[F179(1)Where a person claims incapacity benefit under section 40 or 41 above for a period commencing after he has ceased to be in qualifying remunerative work (within the meaning of Part 1 of the Tax Credits Act 2002) and—

(a)the day following that on which he so ceased was a day of incapacity for work for him,

(b)he has been entitled to incapacity benefit under that section within the period of two years ending with that day of incapacity for work, and

(c)he satisfied the relevant tax credit conditions on the day before he so ceased,

every day during that period on which he satisfied those conditions is to be treated for the purposes of the claim as a day of incapacity for work for him.

(1A)A person satisfies the relevant tax credit conditions on a day if—

(a)he is entitled for the day to the disability element of working tax credit (on a claim made by him or by him jointly with another) or would be so entitled but for the fact that the relevant income (within the meaning of Part 1 of the Tax Credits Act 2002) in his or their case is such that he is not so entitled, and

(b)either working tax credit or any element of child tax credit other than the family element is paid in respect of the day on such a claim.]

(2)Where—

(a)a person becomes engaged in training for work; and

(b)he was entitled to incapacity benefit under section 40 or 41 above for one or more of the 56 days immediately before he became so engaged; and

(c)the first day after he ceases to be so engaged is for him a day of incapacity for work and falls not later than the end of the period of two years beginning with the last day for which he was entitled to incapacity benefit under that section,

any day since that day in which he was engaged in training for work shall be treated for the purposes of any claim for incapacity benefit under that section for a period commencing after he ceases to be so engaged as having been a day of incapacity for work.

(3)For the purposes of this section “week” means any period of 7 days.]

Retirement pensions (Categories A and B)N.I.

43 Persons entitled to more than one retirement pension.N.I.

(1)A person shall not be entitled for the same period to more than one retirement pension under this Part of this Act except as provided by subsection (2) below.

(2)A person who, apart from subsection (1) above, would be entitled for the same period to both—

(a)a Category A or a Category B retirement pension under this Part; and

(b)a Category C or a Category D retirement pension under Part III of this Act,

shall be entitled to both of those pensions for that period, subject to any adjustment of them in pursuance of regulations under section 71 of the Administration Act.

(3)A person who, apart from subsection (1) above, would be entitled—

[F180(a)to both a Category A retirement pension and one or more Category B retirement pensions under this Part for the same period,]

[F180(aa)to more than one Category B retirement pension (but not a Category A retirement pension) under this Part for the same period, or]

(b)to both a Category C and a Category D retirement pension under Part III of this Act for the same period,

may from time to time give notice in writing to the Department specifying which of the pensions referred to in [F181paragraph (a), (aa) or (b) (as the case may be)] he wishes to receive.

(4)If a person gives such a notice, the pension so specified shall be the one to which he is entitled in respect of any week commencing after the date of the notice.

(5)If no such notice is given, the person shall be entitled to whichever of the pensions is from time to time the most favourable to him (whether it is the pension which he claimed or not).

[F182(6)For the purposes of this section, a pension under section 55A below is not a retirement pension.]

44 Category A retirement pension.N.I.

(1)A person shall be entitled to a Category A retirement pension if—

(a)he is over pensionable age; and

[F183(b)he satisfies the relevant conditions or condition;]

and, subject to the provisions of this Act, he shall become so entitled on the day on which he attains pensionable age and his entitlement shall continue throughout his life.

[F184(1A)In subsection (1)(b) above “the relevant conditions or condition” means—

(a)in a case where the person attains pensionable age before 6th April 2010, the conditions specified in Schedule 3, Part 1, paragraph 5;

(b)in a case where the person attains pensionable age on or after that date, the condition specified in Schedule 3, Part 1, paragraph 5A.]

(2)A Category A retirement pension shall not be payable in respect of any period falling before the day on which the pensioner’s entitlement is to be regarded as commencing for that purpose by virtue of section 5(1)(l) of the Administration Act.

(3)A Category A retirement pension shall consist of—

(a)a basic pension payable at a weekly rate; and

(b)an additional pension payable where there are one or more surpluses in the pensioner’s earnings factors for the relevant years.

[F185(4)The weekly rate of the basic pension shall be [F186£113∙10] except that, so far as the sum is relevant for the purpose of calculating the lower rate of short-term incapacity benefit under section 30B(3) above, it shall be [F187£99∙90].

[F188(5A)For the purpose of this section and section 45 below [F189and [F190Schedules 4A and 4B] to this Act]—

(a)there is a surplus in the pensioner’s earnings factor for a relevant year if that factor exceeds the qualifying earnings factor for [F191that year,

(b)the amount of the surplus is the amount of that excess, and

(c)for the purposes of section 45(1) and (2)(a) and (b) below, the adjusted amount of the surplus] is the amount of that excess, as increased by the last order under section 130 of the Administration Act to come into operation before the end of the final relevant year.]

(6)[F192Subject to subsection (7A) below] any reference in this section or section 45 below [F193or [F194Schedule 4A or 4B] to this Act] to the pensioner’s earnings factor for any relevant year is a reference—

[F195(za)where the relevant year is the first appointed year or any subsequent year, to the aggregate of his earnings factors derived from [F196so much of his earnings as did not exceed [F197the applicable limit] and] upon which primary Class 1 contributions have been paid or treated as paid in respect of that year;]

(a)where the relevant year is 1987-88 or any subsequent tax year [F198before the first appointed year], to the aggregate of—

(i)his earnings factors derived from earnings upon which primary Class 1 contributions were paid or treated as paid in respect of that year, and

[F199(ii)his earnings factors derived from Class 2 and Class 3 contributions actually paid in respect of that year, or, if less, the qualifying earnings factor for that year; and

(b)where the relevant year is an earlier tax year, to the aggregate of—

(i)his earnings factors derived from Class 1 contributions actually paid by him in respect of that year; and

(ii)his earnings factors derived from Class 2 and Class 3 contributions actually paid by him in respect of that year, or, if less, the qualifying earnings factor for that year.]

(7)In this section—

(a)“relevant year” means 1978-79 or any subsequent tax year in the period between—

(i)(inclusive) the tax year in which the pensioner attained the age of 16, and

(ii)(exclusive) the tax year in which he attained pensionable age;

(b)“final relevant year” means the last tax year which is a relevant year in relation to the pensioner;

[F200(c)“the applicable limit” means—

(i)in relation to a tax year before [F2012009–10], the upper earnings limit;

(ii)in relation to [F2012009–10] or any subsequent tax year, the upper accrual point.]

[F202(7A)The Department may prescribe circumstances in which pensioners’ earnings factors for any relevant year may be calculated in such manner as may be prescribed.]

(8)For the purposes of this section any order under Article 23 of the Pensions Order (which made provision corresponding to section 130 of the Administration Act) shall be treated as an order under section 130 (but without prejudice to sections 16 and 17 of the M3Interpretation Act 1978).

[F20344A Deemed earnings factorsN.I.

[F204(A1)Subsections (1) to (4) below apply to the first appointed year or any subsequent tax year before 2010–11.]

(1)For the purposes of section 44(6)(za) above, if any of the conditions in subsection (2) below is satisfied for a relevant year [F205to which this subsection applies], a pensioner is deemed to have an earnings factor for that year which—

(a)is derived from [F206so much of his earnings as did not exceed [F207the applicable limit] and] on which primary Class 1 contributions were paid; and

(b)is equal to the amount which, when added to any other earnings factors taken into account under that provision, produces an aggregate of earnings factors equal to the low earnings threshold.

(2)The conditions referred to in subsection (1) above are that—

(a)the pensioner would, apart from this section, have an earnings factor for the year—

(i)equal to or greater than the qualifying earnings factor for the year; but

(ii)less than the low earnings threshold for the year;

(b)[F208carer’s allowance]—

(i)was payable to the pensioner throughout the year; or

(ii)would have been so payable but for the fact that under regulations the amount payable to him was reduced to nil because of his receipt of other benefits;

(c)for the purposes of paragraph 5(7)(b) of Schedule 3, the pensioner is taken to be precluded from regular employment by responsibilities at home throughout the year by virtue of—

(i)the fact that child benefit was payable to him in respect of a child under the age of six; or

(ii)his satisfying such other condition as may be prescribed; or

(d)the pensioner is a person satisfying the requirement in subsection (3) below to whom long-term incapacity benefit [F209or qualifying employment and support allowance] was payable throughout the year, or would have been so payable but for the fact that—

(i)he did not satisfy the contribution conditions specified in paragraph 2 of Schedule 3 [F210or, as the case may be, [F211in paragraphs 1 and 2] of Schedule 1 to the Welfare Reform Act (Northern Ireland) 2007]; or

(ii)under regulations the amount payable to him was reduced to nil because of his receipt of other benefits or of payments from an occupational pension scheme or personal pension scheme.

(3)The requirement referred to in subsection (2)(d) above is that—

(a)for one or more relevant years the pensioner has paid, or (apart from this section) is treated as having paid, primary Class 1 contributions on earnings equal to or greater than the qualifying earnings factor; and

(b)the years for which he has such a factor constitute at least one tenth of his working life.

(4)For the purposes of subsection (3)(b) above—

(a)a pensioner’s working life shall not include—

(i)any tax year before 1978-79; or

(ii)any year in which he is deemed under subsection (1) above to have an earnings factor by virtue of fulfilling the condition in subsection (2)(b) or (c) above; and

(b)the figure calculated by dividing his working life by ten shall be rounded to the nearest whole year (and any half year shall be rounded down).

[F212(4A)The following do not apply to a pensioner attaining pensionable age on or after 6th April 2010—

(a)the requirement referred to in subsection (2)(d) above, and

(b)subsections (3) and (4) above.]

(5)The low earnings threshold for the first appointed year and subsequent tax years shall be £9,500 (but subject to section 130A of the Administration Act).

[F213(5A)In subsection (1)(a) “the applicable limit” has the same meaning as in section 44.]

(6)In subsection (2)(d)(ii) above, “occupational pension scheme” and “personal pension scheme” have the same meanings as in subsection (6) of section 30DD above for the purposes of subsection (5) of that section.

[F214(7)In subsection (2)(d) “qualifying employment and support allowance” means contributory employment and support allowance where—

(a)that allowance was payable for a continuous period of 52 weeks;

(b)that allowance included the support component under section 2(2) of the Welfare Reform Act (Northern Ireland) 2007; or

(c)in the case of—

(i)a man born between 6th April 1944 and 5th April 1947, or

(ii)a woman born between 6th April 1949 and 5th April 1951,

that allowance was payable for a continuous period of 13 weeks immediately following a period throughout which statutory sick pay was payable.]]

[F21544BDeemed earnings factors: 2010–11 onwardsN.I.

(1)This section applies to 2010–11 and subsequent tax years.

(2)For the purposes of section 44(6)(za) above, if any of Conditions A to C in subsections (3) to (5) below is satisfied for a relevant year to which this section applies, a pensioner is deemed to have an earnings factor for that year which—

(a)is derived from so much of his earnings as did not exceed [F216the upper accrual point] and on which primary Class 1 contributions were paid; and

(b)is equal to the amount which, when added to any other earnings factors taken into account under that provision, produces an aggregate of earnings factors equal to the low earnings threshold.

(3)Condition A is that the pensioner would, apart from this section, have an earnings factor for the year—

(a)equal to or greater than the qualifying earnings factor (“the QEF”) for the year, but

(b)less than the low earnings threshold for the year.

(4)Condition B is that the pensioner—

(a)would, apart from this section and section 44C below, have an earnings factor for the year less than the QEF for the year, but

(b)is entitled to an aggregate amount of earnings factor credits for that year under section 44C below equal to the difference between the QEF for the year and the earnings factor mentioned in paragraph (a) above.

(5)Condition C is that the pensioner is entitled to 52 earnings factor credits for that year under section 44C below.

(6)This section has effect in relation to the flat rate introduction year and any subsequent tax year as if—

(a)subsection (2)(b) above referred to an aggregate of earnings factors greater than the QEF, but less than the low earnings threshold, for the year (rather than to one equal to that threshold); and

(b)Condition A in subsection (3) above (and the reference to it in subsection (2) above) were omitted.

(7)In this section—

F217(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)“the low earnings threshold” means the low earnings threshold for the year concerned as specified in section 44A above; and

(c)in subsections (3) and (4) above, any reference to the pensioner's earnings factor for a relevant year is to be construed in accordance with section 44(6)(za) above.]

[F21544CEarnings factor creditsN.I.

(1)This section applies, for the purposes of Conditions B and C in section 44B(4) and (5) above, to 2010–11 and subsequent tax years.

(2)In respect of each week—

(a)which falls in a relevant year to which this section applies, and

(b)in respect of which a pensioner is eligible for earnings factor enhancement,

the pensioner is entitled to an earnings factor credit equal to 1/52 of the QEF for that year.

This is subject to subsection (5) below.

(3)A pensioner is eligible for earnings factor enhancement in respect of a week if one or more of the following apply—

(a)he was a relevant carer in respect of that week for the purposes of section 23A above (see section 23A(3));

(b)carer's allowance was payable to him for any part of that week, or would have been so payable but for the fact that under regulations the amount payable to him was reduced to nil because of his receipt of other benefits;

(c)severe disablement allowance was payable to him for any part of that week;

(d)long-term incapacity benefit was payable to him for any part of that week or would have been so payable but for the fact that—

(i)he did not satisfy the contribution conditions in paragraph 2 of Schedule 3 to this Act, or

(ii)under regulations the amount payable to him was reduced to nil because of his receipt of other benefits or of payments from an occupational pension scheme or personal pension scheme;

(e)he satisfies such other conditions as may be prescribed.

(4)In subsection (3)(d)(ii) above “occupational pension scheme” and “personal pension scheme” have the meanings given by subsection (6) of section 30DD above for the purposes of subsection (5) of that section.

(5)For the purposes of Condition B in section 44B(4) above a person is not entitled to an aggregate amount of earnings factor credits in respect of a year that is greater than the difference referred to in that Condition.

(6)For the purposes of this section a week that falls partly in one tax year and partly in another is to be treated as falling in the year in which it begins and not in the following year.

(7)In section 44B above and this section—

(a)“the QEF” means the qualifying earnings factor, and

(b)any reference to a person being entitled to an earnings factor credit of a particular amount (or to an aggregate amount of earnings factor credits) for a year is a reference to the person being treated as having for that year an earnings factor (within the meaning of section 44(6)(za) above) of the amount in question by virtue of subsection (2) above.]

45 The additional pension in a Category A retirement pension.N.I.

(1)The weekly rate of the additional pension in a Category A retirement pension in any case where the pensioner attained pensionable age in a tax year before 6th April 1999 shall be the weekly equivalent of 1 1/4 per cent. of the [F218adjusted] amount of the surpluses mentioned in section 44(3)(b) above.