F1EXPLANATORY NOTE

(This note is not part of the Regulations)

This instrument contains provisions necessary to give full effect to the 2021 benefits and pensions up-rating exercise.

Regulation 2 provides that where a question has arisen about the effect of the Social Security Benefits Up-rating Order 2021 (S.I. 2021/162) on a benefit already in payment, the altered rates will not apply until that question is determined by the Secretary of State, the First-tier Tribunal or the Upper Tribunal.

Regulation 3 applies the provisions of regulation 5 of the Social Security Benefit (Persons Abroad) Regulations 1975 (S.I. 1975/563) and regulation 21 of the State Pension Regulations 2015 (S.I. 2015/173) so as to restrict the application of the increases specified in the Social Security Benefits Up-rating Order 2021 in cases where the beneficiary is not ordinarily resident in Great Britain.

Regulation 4 amends paragraph 2C of Schedule 2 to the Social Security Benefit (Dependency) Regulations 1977 (S.I. 1977/343), an interpretation provision, to put beyond doubt the fact that child dependency increases paid with a carer’s allowance can include an increase for a qualifying young person.

Regulation 5 increases from £26.05 to £26.20 the amount allowed for personal expenses for a person in certain accommodation, where that person’s benefit is paid to the accommodation provider.

Regulation 6 revokes the Social Security Benefits Up-rating Regulations 2020 (S.I. 2020/266) save for:

• regulation 4 which increased to £128 the amount which a person eligible for payment of carer’s allowance can earn in the immediately preceding week without being deemed to be gainfully employed and, therefore, losing their entitlement to carer’s allowance, and

• regulation 5 which increased the earnings limit for child dependency increases payable with a carer’s allowance so that where the claimant’s partner has earnings of £245 or more, no increase is paid for the first child or qualifying young person. After that the rule operates in steps of £33. For each multiple of £33 by which the earnings exceed £245, the increase for a further child or qualifying young person is not payable.

A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, public or voluntary sector is foreseen.