{
  "url": "https://openlegislation.uk/draft-infected-blood-compensation-scheme-regulations-2025/regulation-37",
  "json_url": "https://openlegislation.uk/draft-infected-blood-compensation-scheme-regulations-2025/regulation-37.json",
  "legislation": "ukdsi/2025/9780348268843",
  "legislation_title": "The Infected Blood Compensation Scheme Regulations 2025",
  "legislation_url": "https://openlegislation.uk/draft-infected-blood-compensation-scheme-regulations-2025",
  "path": "regulation/37",
  "kind": "regulation",
  "number": "37",
  "heading": "Financial loss (PAYE earnings) award",
  "text": "(1) The amount of the financial loss (PAYE earnings) award in relation to an eligible infected person (“P”) is (A + B) – C, where—\n(a) “A” is the sum of the annual amounts in relation to each year of the reduced earnings period determined in accordance with paragraph (3);\n(b) “B” is the sum of the annual amounts in relation to each year of the reduced pension period (if any) determined in accordance with paragraph (4);\n(c) “C” is the amount of the additional financial loss (core) award in relation to P.\n(2) For the purposes of this regulation—\n“the reduced earnings period” is the period which—\n(a) begins with the year in which P first suffered exceptional reduced PAYE earnings, and\n(b) ends with—\n(i) the year in which P attained, or is expected to attain, the age of 65, or\n(ii) if P died before that year, the year in which P died;\n“the reduced pension period” is the period (if any) which—\n(a) begins with the year in which P attained, or is expected to attain, the age of 66, and\n(b) ends with—\n(i) the year in which P attained, or is expected to attain, the age of their healthy life expectancy, or\n(ii) if P died before that year, the year in which P died.\n(3) For each year of the reduced earnings period, the annual amount is the lesser of—\n(a) £54,028, or\n(b) D – E, where—\n(i) “D” is P’s deemed average PAYE annual earnings, net of reductions;\n(ii) “E” is P’s deemed actual PAYE earnings for the year, net of reductions.\n(4) For each year of the reduced pension period (if any), the annual amount is ((((F – 6,240) × 0.061) × G) – H) ÷ I, where——\n(a) “F” is P’s deemed average PAYE annual earnings;\n(b) “G” is the number of years in the reduced earnings period;\n(c) “H” is the sum of the employer pension contribution amounts determined in relation to each year of the reduced earnings period, being (J – 6,240) × 0.061 for each year, where J is P’s deemed actual PAYE earnings for that year;\n(d) “I” is the number of years in the reduced pension period.\n(5) For the purposes of determining the employer pension contribution amount in relation to a year in accordance with paragraph (4)(c), where P’s deemed actual PAYE earnings for that year are £6,240 or less, the year is to be disregarded.\n(6) In this regulation—\n(a) “net of reductions”, in relation to earnings, means the amount of those earnings less the tax and national insurance (if any) that would have been paid on those earnings under the rates which applied on 31st March 2024 if the earnings were P’s sole source of income;\n(b) “P’s deemed actual PAYE earnings” are, in relation to any year during the reduced earnings period which is—\n(i) before the year in which the date of the application falls, the 2023 equivalent of P’s actual PAYE earnings in that year (for “2023 equivalent”, see paragraph (9));\n(ii) any other year, the 2023 equivalent of P’s actual PAYE earnings in the year immediately before the year in which the date of the application falls;\n(c) “P’s deemed average PAYE annual earnings” are K × L, where—\n(i) “K” is the 2023 equivalent of P’s pre-reduction PAYE annual earnings;\n(ii) “L” is the multiplier in the table in paragraph (10) which corresponds to P’s age on first suffering reduced earnings and to the percentile of P’s pre-reduction PAYE annual earnings, using linear interpolation between the closest values in the table where the percentile of P’s pre-reduction PAYE annual earnings falls between the values set out in the table.\n(7) For the purposes of paragraph (6)(b), P’s actual PAYE earnings in a year are—\n(a) P’s actual PAYE earnings as established for that year by evidence which accompanies P’s application;\n(b) where P’s application is not accompanied by such evidence in relation to a year (“the unverified year”), the average of, where the unverified year is—\n(i) the first year in which P suffered exceptional reduced PAYE earnings, P’s actual PAYE earnings in each of the two years immediately after that year;\n(ii) the final year of the reduced earnings period, P’s actual PAYE earnings in each of the two years immediately before that year;\n(iii) any other year during the reduced earnings period, P’s actual PAYE earnings in each of—\n(aa) the year which is immediately before the unverified year, and\n(bb) the year which is immediately after the unverified year.\n(8) For the purposes of—\n(a) paragraph (6)(c), P’s pre-reduction PAYE annual earnings are the amount of P’s actual PAYE earnings in the 12-month period which ended with the month before P first suffered exceptional reduced PAYE earnings as established by evidence which accompanies P’s application, and\n(b) determining the percentile of those earnings in accordance with step 1 in paragraph (9), the year of P’s pre-reduction PAYE annual earnings is deemed to be the year immediately before the year in which P first suffered exceptional reduced PAYE earnings.\n(9) For the purposes of paragraph (6)(b) and (c), the 2023 equivalent of, as the case may be, P’s actual PAYE earnings in a year or P’s pre-reduction PAYE annual earnings is found by taking the following steps—\nStep 1\nIdentify the percentile of, as the case may be, P’s actual PAYE earnings in a year or P’s pre-reduction PAYE annual earnings by reference to the relevant earnings dataset using linear interpolation between the closest values where the earnings fall between the values set out in the dataset.\nThe relevant earnings dataset is, where the year of the earnings was—\n(a) 1997 or any subsequent year, the “Full-Time” worksheet of the Earnings and hours worked, age group: ASHE Table 6 for—\n(i) in the case of 1997 and 1998, gross weekly pay;\n(ii) in the case of any subsequent year, gross annual pay,\nwhich corresponds to the year of the earnings and to P’s age at the beginning of that year, and where the revised edition of the dataset is available it is to be used in preference to the provisional edition;\n(b) any year during the period beginning with 1974 and ending with 1996, the “All Occupations” table of the New Earnings Survey – Age Group Gross Weekly and Hourly excluding Overtime data which corresponds to the year of the earnings, to P’s age at the beginning of that year, and to P’s gender;\n(c) any year during the period beginning with 1970 and ending with 1973, the entry in the “GB Median Time-series” worksheet of the Earnings time series of median gross weekly earnings from 1968 to 2023 which corresponds to the year of the earnings and to P’s gender.\nFor the purposes of this step—\n(a) where the percentile of, as the case may be, P’s actual PAYE earnings in a year or P’s pre-reduction PAYE annual earnings are higher than the 90th percentile, they are to be treated as if they were the 90th percentile;\n(b) where P was 16 or 17 in the year of the earnings, they are to be treated as if they were 18;\n(c) where, as the case may be, the year of P’s actual PAYE earnings in a year or P’s pre-reduction PAYE annual earnings was before 1970, the year of those earnings is to be treated as if it were 1970.\nStep 2\nIdentify the earnings which are at that same percentile in the “Full-Time” worksheet of Table 6.7a of the Earnings and hours worked, age group: ASHE dataset for 2023 using linear interpolation between the closest values where the percentile falls between the values set out in the dataset.\nThose earnings are the 2023 equivalent of, as the case may be, P’s actual gross PAYE in a year or P’s pre-reduction PAYE annual earnings.\n(10) The table mentioned in paragraph (6)(c)(ii) is—\nP’s age on first suffering exceptional reduced PAYE earnings\nPercentile of P’s pre-reduction PAYE earnings determined in accordance with step 1 of paragraph (9)\n60\n70\n80\n90\n18 to 21\n1.8\n1.88\n1.99\n2.26\n22 to 29\n1.27\n1.3\n1.35\n1.45\n30 to 39\n1.02\n1.04\n1.05\n1.09\n40 to 49\n1\n1\n1\n1\n50 or older\n1\n1\n1\n1",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "footnote",
      "label": "f1",
      "text": "The Earnings and hours worked, age group: ASHE datasets are published by the Office for National Statistics and are available online at https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkinghours/datasets/agegroupashetable6"
    },
    {
      "type": "footnote",
      "label": "f2",
      "text": "The New Earnings Survey – Age Group Gross Weekly and Hourly excluding Overtime data is published by the Office for National Statistics and is available online at https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkinghours/adhocs/006810newearningssurveynesagegroupgrossweeklyandhourlyexcludingovertimedata"
    },
    {
      "type": "footnote",
      "label": "f3",
      "text": "the Earnings time series of median gross weekly earnings from 1968 to 2023 is published by the Office for National Statistics and is available online at https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkinghours/datasets/earningstimeseriesofmediangrossweeklyearningsfrom1968to2022"
    },
    {
      "type": "footnote",
      "label": "f4",
      "text": "Table 6.7a of the Earnings and hours worked, age group: ASHE dataset for 2023 is published by the Office for National Statistics and is available online at https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkinghours/datasets/agegroupashetable6"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukdsi/2025/9780348268843/regulation/37",
    "retrieved_at": "2026-10-30T14:39:35.762697+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}