Explanatory note

The low earnings threshold is the amount by reference to which the surplus earnings bands are determined for the purpose of calculating the additional pension (the state second pension) in a state retirement pension.

This Order is made following a review by the Secretary of State under section 148A (revaluation of low earnings threshold) of the Social Security Administration Act 1992 (c. 5) of the general level of earnings in Great Britain with a view to determining whether, and if so by how much, the amount of the low earnings threshold for the purposes of the Social Security Contributions and Benefits Act 1992 (c. 4) should be increased for future tax years.

As a result of that review, it appears to the Secretary of State that the general level of earnings during the period from 1st October 2013 to 30th September 2014 has increased by 1.5%.

This Order directs that the low earnings threshold for the tax years following 2014 – 2015 shall be £15,300. The threshold for the tax year 2014 – 2015 was directed to be £15,100 by virtue of the Social Security Pensions (Low Earnings Threshold) Order 2014 (S.I. 2014/368).

A full impact assessment has not been produced for this instrument as it has no new impact on business or civil society organisations.