# The Social Security Revaluation of Earnings Factors Order 2021

S.I. 2021/267 · made 8 March 2021

This Order is made following a review under section 148 (revaluation of earnings factors) of the Social Security Administration Act 1992 (c. 5).

Made under: Social Security Administration Act 1992 (Section 148, Section 189)

PDFs: Printed copy https://openlegislation.uk/social-security-revaluation-of-earnings-factors-order-2021/pdf/uksi_20210267_en.pdf; UK Explanatory Memorandum https://openlegislation.uk/social-security-revaluation-of-earnings-factors-order-2021/pdf/uksiem_20210267_en.pdf

## Introductory text

Social Security
Made 8th March 2021
Laid before Parliament 9th March 2021
Coming into force 6th April 2021
In accordance with section 148(2) of the Social Security Administration Act 1992, the Secretary of State for Work and Pensions has reviewed the general level of earnings obtaining in Great Britain.
The Secretary of State has concluded, having regard to earlier orders made under section 148 of that Act, that earnings factors for the relevant tax years have not, during the period taken into account for that review, maintained their value in relation to the general level of earnings.
Accordingly, the Secretary of State makes this Order in exercise of the powers conferred by sections 148(3) and (4) and 189(4) and (5) of the Social Security Administration Act 1992.

## 1 Citation and commencement

This Order may be cited as the Social Security Revaluation of Earnings Factors Order 2021 and comes into force on 6th April 2021.

## 2 Revaluation of earnings factors

Earnings factors for the tax years specified in the Schedule to this Order in so far as they are relevant—
(a) to the calculation of–
(i) the additional pension in the rate of any long-term benefit; or
(ii) any guaranteed minimum pension; or
(b) to any other calculation required under Part 3 of the Pension Schemes Act 1993 (including that Part as modified by or under any other enactment),
are directed to be increased by the percentage of their amount shown opposite those tax years in that Schedule.

## 3 Rounding of fractional amounts

Where any earnings factor relevant to the calculation specified in article 2(a)(i), as increased in accordance with this Order, would not but for this article be expressed as a whole number of pounds, it is to be so expressed by rounding down any fraction of a pound less than one half and rounding up any other fraction of a pound.

## Signature

Signed by authority of the Secretary of State for Work and Pensions
Justin Tomlinson
Minister of State
Department for Work and Pensions
8th March 2021

## Percentage increase of earnings factors for specified tax years

Tax year
Percentage increase
1978-1979
910.2
1979-1980
791.6
1980-1981
644.9
1981-1982
523.8
1982-1983
466.6
1983-1984
426.1
1984-1985
387.1
1985-1986
357.0
1986-1987
319.6
1987-1988
290.7
1988-1989
259.4
1989-1990
224.4
1990-1991
202.3
1991-1992
174.6
1992-1993
157.8
1993-1994
145.6
1994-1995
138.2
1995-1996
128.1
1996-1997
121.9
1997-1998
111.4
1998-1999
102.1
1999-2000
93.9
2000-2001
82.4
2001-2002
75.4
2002-2003
68.2
2003-2004
62.3
2004-2005
56.4
2005-2006
50.2
2006-2007
45.3
2007-2008
39.6
2008-2009
33.9
2009-2010
29.9
2010-2011
28.4
2011-2012
25.5
2012-2013
23.3
2013-2014
21.1
2014-2015
20.0
2015-2016
18.2
2016-2017
15.9
2017-2018
13.0
2018-2019
9.7
2019-2020
6.7
2020-2021
2.6

## Explanatory note

(This note is not part of the Order)
This Order is made following a review under section 148 (revaluation of earnings factors) of the Social Security Administration Act 1992 (c. 5).
This Order applies to earnings factors relevant to the calculation of additional pension in any long-term benefit or of any guaranteed minimum pension or to any other calculation required under Part 3 of the Pension Schemes Act 1993 (c. 48) (“the 1993 Act”). Article 2 provides that, for those purposes, earnings factors for the tax years specified in the Schedule to this Order are to be increased by the percentage of their amount specified in that Schedule; the effect is that earnings factors for those years are revalued at 2020-2021 earnings levels.
Accruals of additional state pension ended with the introduction of new state pension on 6th April 2016. Revaluation of earnings factors is still required for inherited additional state pension in certain circumstances (see sections 48B and 51 of the Social Security Contributions and Benefits Act 1992 (c. 4) (“the Contributions and Benefits Act”)).
The percentages specified in this Order for the tax years from and including 2000-2001 are used in the revaluation of old state scheme pension debits and credits (awarded under section 49(1) of the Welfare Reform and Pensions Act 1999 (c. 30)) in accordance with sections 13 and 14 of, and paragraph 2(6) of each of Schedules 8 and 10 to, the Pensions Act 2014 (c. 19). The percentage specified for 2015-2016 is used to increase flat rate accrual amounts of additional state pension in accordance with paragraphs 4(2), 8(4) and 9(4) of Schedule 4B to the Contributions and Benefits Act.
Accruals of guaranteed minimum pensions ended on 6th April 1997 by virtue of section 14(8) of the 1993 Act. Revaluation of earnings factors is still required for guaranteed minimum pensions which are not yet in payment.
Article 3 of this Order provides for rounding fractional amounts for earnings factors relevant to the calculation of the additional pension in the rate of any long-term benefit. By virtue of section 23(2) of the Contributions and Benefits Act, rounding is not required for the purpose of calculating guaranteed minimum pensions.
A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sector is foreseen.

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Source: https://www.legislation.gov.uk/uksi/2021/267 (the official version)
Page: https://openlegislation.uk/social-security-revaluation-of-earnings-factors-order-2021
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.