# The Social Security Revaluation of Earnings Factors Order 2024

S.I. 2024/284 · made 4 March 2024

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-2024/pdf/uksi_20240284_en.pdf; UK Explanatory Memorandum https://openlegislation.uk/social-security-revaluation-of-earnings-factors-order-2024/pdf/uksiem_20240284_en_001.pdf

## Introductory text

SOCIAL SECURITY
Made 4th March 2024
Laid before Parliament 6th March 2024
Coming into force 6th April 2024
In accordance with section 148(2) of the Social Security Administration Act 1992, the Secretary of State 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, commencement and extent

(1) This Order may be cited as the Social Security Revaluation of Earnings Factors Order 2024 and comes into force on 6th April 2024.
(2) This Order extends to England and Wales and Scotland.

## 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 (schemes that were contracted-out etc. and effects on members’ state scheme rights) (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
Paul Maynard
Parliamentary Under Secretary of State
Department for Work and Pensions
4th March 2024

## Percentage increase of earnings factors for specified tax years

Tax year
Percentage increase
1978-1979
1115.4
1979-1980
972.7
1980-1981
796.2
1981-1982
650.6
1982-1983
581.7
1983-1984
533.0
1984-1985
486.1
1985-1986
449.8
1986-1987
404.9
1987-1988
370.1
1988-1989
332.5
1989-1990
290.3
1990-1991
263.8
1991-1992
230.4
1992-1993
210.2
1993-1994
195.4
1994-1995
186.6
1995-1996
174.5
1996-1997
167.0
1997-1998
154.3
1998-1999
143.1
1999-2000
133.3
2000-2001
119.5
2001-2002
111.0
2002-2003
102.3
2003-2004
95.3
2004-2005
88.2
2005-2006
80.7
2006-2007
74.8
2007-2008
67.9
2008-2009
61.2
2009-2010
56.3
2010-2011
54.5
2011-2012
51.0
2012-2013
48.3
2013-2014
45.7
2014-2015
44.4
2015-2016
42.3
2016-2017
39.5
2017-2018
35.9
2018-2019
32.0
2019-2020
28.4
2020-2021
23.4
2021-2022
20.3
2022-2023
15.1
2023-2024
7.6

## 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 2023-2024 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/2024/284 (the official version)
Page: https://openlegislation.uk/social-security-revaluation-of-earnings-factors-order-2024
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.