Explanatory note

This Order, a draft of which has been laid before and approved by resolution of each Houseof Parliament, is made as a consequence of a review under section 63(1) of the Social Security Act 1986 (“the 1986 Act”) and includes details of the sums mentioned in that section.

Part I relates to citation, commencement and interpretation. Part II relates to non-means tested benefits. Article 3 alters the benefits and increases of benefit (except age addition) specified in Parts I, III, IV and V of Schedule 4 to the Social Security Act 1975 (“the 1975 Act”). Article 4 increases the rates and amounts of certain benefits under Part II of the Social Security Pensions Act 1975 (“the Pensions Act”) (including increases of Category A or B retirement pensions payable by reference to the increases of increments in guaranteed minimum pensions payable by virtue of section 35(6) of that Act); article 5 specifies the dates from which the sums specified for rates or amounts of benefit under the 1975 Act or the Pensions Act are altered. Article 6 increases the rates laid down in the Industrial Injuries and Diseases (Old Cases) Act 1975 for the maximum weekly rate of lesser incapacity allowance supplementing workmen’s compensation and the weekly rate of allowance under the Industrial Diseases Schemes where disablement is not total. Article 7 increases the rate of graduated retirement pension under the National Insurance Act 1965.

Article 8 provides for the weekly rate of one-parent benefit to be increased. Article 9increases the weekly rate of statutory sick pay payable as from 6th April 1989. Article 10 increases the lower rate of statutory maternity pay and article 11 specifies earnings limits forretirement pension and child dependency increases. Article 12 is a transitional provision relating to statutory sick pay.

Part III of the Order relates to family credit, income support and housing benefit. Article 13 sets out the component rates of the applicable amount for family credit purposes. Article 14 and Schedule 2 specify the maximum amount payable by way of family credit for an adult, child or young person.

Article 15 states the amount of sums relevant to the applicable amount for the purposes of income support. Article 15(3) and Schedule 3 set out the personal allowances; article 15(5) and Schedule 4 set out the premiums; article 15(8) and (9) set out the amounts relevant to the beneficiaries in residential care and nursing homes; article 15(10) and (11) and Schedule 6 set out the amounts relevant to those beneficiaries residing in hostels; article 15(12) and Schedule 10 set out the amounts relevant to special cases; and article 15(14) and Schedule 8 set out other miscellaneous amounts. Article 16 provides for the percentage increase of sums payable by way of special transitional additions to income support. Article 17 states the sum by which any income support of a person involved in a trade dispute is reduced.

Article 18 states the amount of the sums relevant to the applicable amount for the purposes of housing benefit. Article 18(7) and Schedule 9 set out the personal allowances and article 18(9) and Schedule 10 set out the premiums.

Article 19 states the amount of the sums relevant to the applicable amount for the purposes of community charge rebates in Scotland specified in the Housing Benefit (Community Charge Rebates) (Scotland) Regulations 1988. Article 19(4) and Schedule 11 set out the personal allowances and article 19(6) and Schedule 12 the premiums. Article 20 is a transitional provision relating to family credit. Article 21 contains revocations.

In accordance with section 63(11) of the Social Security Act 1986, a copy of the report of the Government Actuary (Cm.537) giving his opinion on the likely effect on the National Insurance Fund of the making of this Order was laid before Parliament with the draft Order.