Social Security (Incapacity for Work) Act 1994 in Northern Ireland
1994 c. 18 · Enacted 5 July 1994 · Extends to United Kingdom
An Act to provide for incapacity benefit in place of sickness benefit and invalidity benefit; to make provision as to the test of incapacity for work for the purposes of that benefit and other social security purposes; to make provision as to the rate of statutory sick pay; to make other amendments as to certain allowances payable to a person who is or has been incapable of work; and for connected purposes.
[5th July 1994] I1
E1C1Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—
Annotations to the whole text
Modifications
- C1
Act: excluded (13.4.1995) by S.I. 1995/310, reg. 16
Act: modified (E.W.S.) (8.9.1998) by 1998 c. 14, s. 2(1)(2)(e); S.I. 1998/2209, art. 2(a), Sch. Pt. I
Act: power to amend conferred (2.12.1999) by 1998 c. 47, s. 87(6)(h); S.I. 1999/3209, art. 2, Sch.
Commencement
- I1
Act partly in force at Royal Assent see s. 16(2)(3).
Extent
- E1
Ss. 14, 16(1)(2)(4) extend to Northern Ireland, but otherwise Act does not extend there: see s. 16(4).
Contents
- 4Power to provide for the transition to incapacity benefit.
- 8Rate of statutory sick pay.
- General
- 14Corresponding provision for Northern Ireland.
- 16Short title, commencement and extent.
- Schedule 1: Consequential amendments
- Part I: Amendments of the Contributions and Benefits Act
- 1Paragraph 1
- 7Paragraph 7
- 12Paragraph 12
- 14Paragraph 14
- 15Paragraph 15
- 16Paragraph 16
- 17Paragraph 17
- 23Paragraph 23
- 29Paragraph 29
- 31Paragraph 31
- 34Paragraph 34
- 43Paragraph 43
- Part II: Amendments of the Administration Act and other enactments
- Social Security Administration Act 1992 (c.5)
- 49Paragraph 49
- 50Paragraph 50
- 51Paragraph 51
- 52Paragraph 52
- 53Paragraph 53
- Employment Protection (Consolidation) Act 1978 (c.44)
- Criminal Justice Act 1991 (c.53)
- Pension Schemes Act 1993 (c.48)
- 56Paragraph 56
- 57Paragraph 57
- 58Paragraph 58
4Power to provide for the transition to incapacity benefit.
The Secretary of State may by regulations make such provision as appears to him to be necessary or expedient for the purposes of, or in connection with, the transition to incapacity benefit from sickness benefit and invalidity benefit.
Nothing in the following provisions of this section shall be construed as restricting the generality of that power.
In this section—
“commencement” means the commencement of sections 1 to 3 above and the consequent repeal of the provisions of the M1Social Security Contributions and Benefits Act 1992 relating to sickness benefit and invalidity benefit; and
“prescribed” means prescribed by regulations under this section.
Regulations under this section may provide that where a person was entitled to sickness benefit or invalidity benefit immediately before commencement any award of sickness benefit or invalidity benefit shall have effect after commencement, in accordance with the regulations and subject to such modifications as may be prescribed, as an award of incapacity benefit.
In the following provisions of this section such awards are referred to as “transitional awards” of incapacity benefit.
The reference in subsection (3) above to a person who was entitled to sickness benefit or invalidity benefit includes a person who would have been so entitled but for being disqualified by virtue of regulations under section 32 or 59 of the M2Social Security Contributions and Benefits Act 1992; and regulations under this section may provide that any such disqualification shall have such corresponding effect as may be prescribed in relation to the transitional award.
Regulations under this section may provide that a person’s entitlement under a transitional award of incapacity benefit shall, except as may be prescribed, be subject to satisfying the conditions of entitlement to incapacity benefit, and may in particular provide—
for the determination in accordance with Part XIIA of the M3Social Security Contributions and Benefits Act 1992 of the question whether that person is incapable of work; and
for the termination of his entitlement on his attaining pensionable age.
Excepted cases may be defined, in particular, by reference to the age of the person on commencement and whether he was receiving invalidity benefit on 1st December 1993 (the date of the announcement of the new scheme).
Regulations under this section may provide—
that days before commencement which were days of incapacity for work for the purposes of sickness benefit or invalidity benefit, and such other days as may be prescribed, shall be treated as having been days of incapacity for work for the purposes of incapacity benefit, and
that days of entitlement to sickness benefit or invalidity benefit, and such other days as may be prescribed, shall be treated as having been days of entitlement to incapacity benefit.
Such provision may be made for the purposes of a transitional award of incapacity benefit or of enabling a claim for incapacity benefit to be made after commencement on the basis that a day of incapacity for work after commencement forms part of a period of incapacity for work beginning before commencement; and such cases are referred to in the following provisions of this section as “transitional cases”.
Regulations under this section may provide—
for the rate of short-term incapacity benefit under a transitional award to be increased, in such cases as may be prescribed, as if that benefit were sickness benefit and the provisions of Part IV of the M4Social Security Contributions and Benefits Act 1992 (increases for dependants) continued to apply to that benefit; and
for the payment in transitional cases, in such circumstances as may be prescribed, of long-term incapacity benefit to persons over pensionable age.
Regulations under this section may provide that in transitional cases the rate of short-term incapacity benefit at the higher rate or of long-term incapacity benefit shall be calculated—
by reference to the rate of invalidity benefit, and of any relevant related allowance, addition or increase, paid or payable immediately before commencement, with such up-rating (if any) as may be provided for in accordance with the regulations (whether by applying the provisions of section 150 of the M5Social Security Administration Act 1992 or otherwise), and
without any increase or addition which would otherwise be payable with incapacity benefit.
If regulations make provision of the kind mentioned in subsection (8) above they may also make with respect to any additional pension element of incapacity benefit provision corresponding to any of the provisions in force before commencement with respect to the additional pension element of invalidity pension.
Regulations under this section may provide, in relation to transitional cases where the rate of incapacity benefit falls to be calculated by reference to the rate of dependency allowance paid or payable before commencement, that any old saving provisions shall have effect subject to the regulations or shall cease to have effect in accordance with the regulations.
For the purposes of this subsection—
“dependency allowance” means an allowance of the kind provided for in Part IV of the M6Social Security Contributions and Benefits Act 1992, and
“old saving provisions” means provisions of any description, including administrative provisions, in connection with a previous change affecting entitlement to or the amount of dependency allowances, preserving a person’s position in any respect.
Section 175(2) to (4) of the M7Social Security Contributions and Benefits Act 1992 (general provisions as to regulations and orders) apply in relation to the power conferred by subsection (1) above as they apply in relation to a power conferred by that Act to make regulations.
For the period of four years from Royal Assent a statutory instrument which contains (whether alone or with other provisions) any regulations under this section shall not be made unless a draft of the instrument has been laid before Parliament and approved by a resolution of each House.
A statutory instrument—
which contains (whether alone or with other provisions) any regulations made under this section, and
which is not subject to any requirement that a draft of the instrument be laid before and approved by a resolution of each House of Parliament,
shall be subject to annulment in pursuance of a resolution of either House of Parliament.
8Rate of statutory sick pay.I1
In section 157(1) of the Social Security Contributions and Benefits Act 1992 (statutory sick pay: rates of payment), for the words following “at the weekly rate of" substitute “ £52.50 ”.
Any order under section 150 of the M1Social Security Administration Act 1992 (up-rating orders) made by the Secretary of State before the commencement of this section shall include provision making such increase (if any) in the sum specified in the amendment made by subsection (1) above as the amount of statutory sick pay as is necessary to make that sum equal to the higher rate of statutory sick pay payable after the order comes into force.
In subsection (2) of section 157 of the Social Security Contributions and Benefits Act 1992 (power to make provision by order as to rates of payment, &c.), for paragraph (a) substitute—
“(a)amend subsection (1) above so as to substitute different provision as to the weekly rate or rates of statutory sick pay; and”.
In sections 155(4) and 158(2)(b) of that Act for “the appropriate weekly rate set out in" substitute “ the weekly rate applicable in accordance with ”.
14Corresponding provision for Northern Ireland.
An Order in Council under paragraph 1(1)(b) of Schedule 1 to the M1Northern Ireland Act 1974 (legislation for Northern Ireland in the interim period) which states that it is made only for purposes corresponding to those of this Act—
shall not be subject to paragraph 1(4) and (5) of that Schedule (affirmative resolution of both Houses of Parliament), but
shall be subject to annulment in pursuance of a resolution of either House of Parliament.
16Short title, commencement and extent.E1
This Act may be cited as the Social Security (Incapacity for Work) Act 1994.
The following provisions of this Act come into force on Royal Assent—
section 14 (corresponding provision for Northern Ireland),
section 15 (expenses), and
this section.
The other provisions of this Act come into force on such day as the Secretary of State may appoint by order made by statutory instrument, and different days may be appointed for different provisions and for different purposes.
Section 14 above, subsections (1) and (2) above and this subsection extend to Northern Ireland, but otherwise this Act does not extend there.
1
In section 4 of the M1Social Security Contributions and Benefits Act 1992 (payments treated as remuneration and earnings), in subsection (3) (meaning of “sickness payment") omit the words “within the meaning of section 57 below".
7
Omit sections 31 to 34 of the M1Social Security Contributions and Benefits Act 1992 (sickness benefit and invalidity benefit).
12
In section 46 of the M1Social Security Contributions and Benefits Act 1992 (modifications of section 45 for calculating additional pension in certain cases), omit—
subsection (1); and
in subsection (2), the words “or 41(4)".
14
Omit section 57 of the M1Social Security Contributions and Benefits Act 1992 (determination of days for which benefit is payable).
15
Omit section 58 of the M1Social Security Contributions and Benefits Act 1992 (incapacity for work: work as councillor to be disregarded).
16
Omit section 59 of the M1Social Security Contributions and Benefits Act 1992 (invalidity benefit: disqualifications, &c.).
17
Section 61 of the M1Social Security Contributions and Benefits Act 1992 (exclusion of increase of benefit in case of failure to satisfy contribution conditions) is amended as follows.
In subsection (2) for paragraph (b) substitute—
“(b)to short-term incapacity benefit at a rate determined under section 30B(3) above.”.
In the same subsection omit—
paragraph (c) and the word “or" preceding it; and
the words “or invalidity pension" (twice).
23
Omit section 86 of the M1Social Security Contributions and Benefits Act 1992 (increase of wife’s invalidity pension for dependent husband).
29
Omit section 102 of the M1Social Security Contributions and Benefits Act 1992 (sickness benefit in respect of industrial injury).
31
In section 126(1) of the M1Social Security Contributions and Benefits Act 1992 (income support: trade disputes), in the closing words, omit “by reason of disease or bodily or mental disablement".
34
In section 151(4) of the M1Social Security Contributions and Benefits Act 1992 (employer’s liability to pay statutory sick pay: days to be treated as days of incapacity for work), for the words from “a day shall not be treated as a day" to “unless on that day" substitute “ a day of incapacity for work in relation to a contract of service means a day on which ”.
43
Schedule 11 to the M1Social Security Contributions and Benefits Act 1992 (circumstances in which entitlement to statutory sick pay does not arise) is amended as follows.
In paragraph 2, for sub-paragraphs (d) and (e) substitute—
“(d)in the period of 57 days ending immediately before the relevant date the employee had at least one day on which—
(i)he was entitled to incapacity benefit (or would have been so entitled had he satisfied the contribution conditions mentioned in section 30A(2)(a) above), or
(ii)she was entitled to a maternity allowance, or
(iii)he was entitled to a severe disablement allowance;”.
Omit paragraph 5.
49
In section 130 of the Social Security Administration Act 1992 (duties of employers: statutory sick pay and claims for other benefits), in subsection (1) (claims for purposes of which information may be required)—
for paragraph (a) substitute—
“(a)short-term incapacity benefit;”; and
for paragraph (c) substitute—
“(c) long-term incapacity benefit;”.
50
In section 132 of the Social Security Administration Act 1992 (duties of employers: statutory maternity pay and claims for other benefits), in subsection (1) (claims for purposes of which information may be required)—
in paragraph (b) for “sickness benefit" substitute “ short-term incapacity benefit ”; and
in paragraph (c) for “invalidity pension under section 33" substitute “ long-term incapacity benefit under section 30A ”.
51
In section 170 of the Social Security Administration Act 1992 (Social Security Advisory Committee) in the definition of “relevant enactments" in subsection (5), for “and this Act" substitute “ , this Act and the Social Security (Incapacity for Work) Act 1994 ”.
52
In section 191 of the Social Security Administration Act 1992 (interpretation: general), omit the definition of “invalidity benefit".
53
In Schedule 2 to the Social Security Administration Act 1992 (supplementary provisions with respect to tribunals, &c.), in paragraph 7(2) (persons to whom remuneration and travelling and other allowances may be paid), after paragraph (a) insert—
“(aa)a person appointed as medical assessor to a social security appeal tribunal under regulations under section 61A(4) above; and”.
56
Section 46 of the Pension Schemes Act 1993 (effect of entitlement to guaranteed minimum pensions on payment of social security benefits) is amended as follows.
In subsection (1), for “, a widow’s pension or a widower’s invalidity pension" substitute “ or a widow’s pension ”.
Omit subsection (2).
For subsection (3) substitute—
“(3)Where for any period—
(a)a person is entitled to one or more guaranteed minimum pensions; and
(b)he is also entitled to long-term incapacity benefit under section 30A of the Social Security Contributions and Benefits Act 1992,
for that period an amount equal to the weekly rate or aggregate weekly rates of the guaranteed minimum pension or pensions shall be deducted from any increase payable under regulations under section 30B(7) of that Act and he shall be entitled to such an increase only if there is a balance after the deduction and, if there is such a balance, at a weekly rate equal to it.”.
In subsection (6), omit paragraph (b)(i).
In subsection (8), omit paragraph (a) and the word “and" immediately following it.
Omit subsection (9).
57
In section 47(1) of the Pension Schemes Act 1993 (further provisions concerning entitlement to guaranteed minimum pensions for the purposes of section 46), omit the words from “in any case" to “construed".
58
In section 48(2) of the Pension Schemes Act 1993 (reduced benefits where minimum payments or minimum contributions paid), for “sections 34(4) and" substitute “ section ”.