# The Social Security (Industrial Injuries) (Reduced Earnings Allowance and Transitional) Regulations 1987, Note: Explanatory note


(This note is not part of the Regulations)
These Regulations come into force on 6th April 1987 and provide in Part II for the determination of the probable standard of remuneration on any award of reduced earnings allowance except the first.
On the second award the probable standard of remuneration is determined in the same manner as the first award (regulation 2(2)), but on the third or subsequent award, the probable standard of remuneration may be determined as on the first award, or, according to the circumstances, by reference to movements in indices of earnings in the occupational group in which the employment belongs. Those circumstances are where the claimant's regular occupation has ceased to exist or at the time of the award he is either not employed or employed in employment which is not suitable in his case.
Where the second or subsequent award of reduced earnings allowance is at the maximum rate of payment regulation 3 enables subsequent awards to be based upon the standards of remuneration established for the previous award increased by a percentage equivalent to the percentage increase in the earnings of the occupational group in which the employment belongs. This regulation does not apply where the effect of the regulation would be to reduce the amount payable below the maximum or where a relevant change in the person's circumstances has occurred.
Regulation 4 provides that an award of reduced earnings allowance following a change of circumstances is to be treated for the purpose of Part II of these Regulations as the first such award.
Part III contains transitional provisions relating to reduced earnings allowance. Regulation 5 excludes from the scope of regulations 2 and 3 claims made before 6th April 1987 and regulation 6 enables earlier awards of an increase in disablement pension under section 60 of the Social Security Act 1975 (special hardship allowance) to be treated as awards of reduced earnings allowance for the purposes of regulations 2 and 3.
Paragraph 5(3) of Schedule 3 to the Social Security Act 1986 comes into force on 6th April 1987 and regulation 7 modifies the paragraph in recognition of the fact that reduced earnings allowance replaced increase in disablement pension under section 60 of the Social Security Act 1975 on 1st October 1986.
Regulation 8 modifies the Social Security Act 1975 so that those who have retired before 6th April 1987 have the aggregate amount of their disablement pension and reduced earnings allowance limited to 100 per cent of the disablement pension rate until 6th April 1989.
Regulation 9 provides for the continuance in force of regulation 85 of the Social Security (Adjudication) Regulations 1984, which relates to the offsetting of prior payments of gratuity against subsequent awards.

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Source: https://www.legislation.gov.uk/uksi/1987/415/note (the official version)
Page: https://openlegislation.uk/social-security-industrial-injuries-reduced-earnings-allowance-and-transitional-regulations-1987/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.