Section 150A — Social Security Administration Act 1992: Annual up-rating of basic pension etc. and standard minimum guarantee

Annual up-rating of basic pension etc. and standard minimum guarantee 150A 1 The Secretary of State shall in each tax year review the following amounts in order to determine whether they have retained their value in relation to the general level of earnings obtaining in Great Britain—

za the amount specified in regulations under section 3(1) of the Pensions Act 2014 (full rate of state pension); a the amount of the basic pension;

b the specified amounts in the case of Category B, C or D retirement pensions;

c the specified amounts in the case of industrial death benefit;

and d the amounts of the standard minimum guarantee for the time being prescribed under section 2(4) and (5)(a) and (b) of the State Pension Credit Act 2002.

2 Where it appears to the Secretary of State that the general level of earnings is greater at the end of the period under review than it was at the beginning of that period, he shall lay before Parliament the draft of an order which increases each of the amounts referred to in subsection (1) above by a percentage not less than the percentage by which the general level of earnings is greater at the end of the period than it was at the beginning.

3 Subsection (2) above does not require the Secretary of State to provide for an increase in any case if it appears to him that the amount of the increase would be inconsiderable.

4 The Secretary of State may, in providing for an increase in pursuance of subsection (2) above, adjust the amount of the increase so as to round the sum in question up or down to such extent as he thinks appropriate.

5 The Secretary of State shall lay with a draft order under this section a copy of a report by the Government Actuary or the Deputy Government Actuary giving that Actuary's opinion on the likely effect on the National Insurance Fund of any parts of the order relating to sums payable out of that Fund.

6 If a draft order laid before Parliament under this section is approved by a resolution of each House, the Secretary of State shall make the order in the form of the draft.

7 Subject to subsection (7A), an order under this section shall be framed so as to bring the increase in question into force in the week beginning with the first Monday in the tax year following that in which the order is made. 7A An order under this section shall be framed so that any alteration to which the order relates comes into force, for the purposes of determining the amount of universal credit to which a person is entitled, on the relevant day. 7B In subsection (7A) “relevant day”, in relation to a person, means the first day of the first universal credit assessment period in respect of the person which begins on or after the Monday of the week specified in subsection (7).

8 For the purposes of any review under subsection (1) above the Secretary of State shall estimate the general level of earnings in such manner as he thinks fit.

9 If a draft order under this section is combined with a draft up-rating order under section 150 above, the report required by virtue of subsection (5) above may be combined with that required by virtue of section 150(8) above.

10 In this section— “ the amount of the basic pension ” means the first amount specified in section 44(4) of the Contributions and Benefits Act (weekly rate of Category A retirement pension); “ the specified amounts in the case of Category B, C or D retirement pensions ” means— the amount specified in paragraph 5 of Part 1 of Schedule 4 to the Contributions and Benefits Act, ... the amount specified in paragraph 7 of Part 3 of that Schedule , and any amount specified in regulations under section 78(9) of the Contributions and Benefits Act for a Category C retirement pension; “ the specified amounts in the case of industrial death benefit ” means— the amounts specified in paragraph 10 of Part 5 of that Schedule (apart from the amount of the initial rate), and the amount specified in paragraph 11 of that Part of that Schedule.