Explanatory note

This Order is made following a review under section 148AD(1) of the Social Security Administration Act 1992 (c. 5) (revaluation of new state pension debits and credits).

Article 2 of this Order revalues debits and credits under section 49A(2) of the Welfare Reform and Pensions Act 1999 (c. 30) in accordance with the increase in the general level of prices.

Under paragraph 3 of each of Schedules 8 and 10 to the Pensions Act 2014 (c. 19) debits to which a person is subject (under section 14 of the Pensions Act 2014) and credits to which a person is entitled (under section 13 of the Pensions Act 2014) are revalued by the percentage specified by the last order under section 148AD to come into force before the person reached pensionable age. Pensionable age has the meaning given by the rules in paragraph 1 of Schedule 4 to the Pensions Act 1995 (c. 26).

Article 1(2) ensures that the revaluing percentage applies to debits and credits applicable to all persons reaching pensionable age on or after 10th April 2018, whether or not they make an advance claim to a state pension. Article 1(2)(a) brings this Order into force on the day which is 21 days after the date on which this Order is laid for the purpose of making an advance award of a state pension under regulation 15(1) of the Social Security (Claims and Payments) Regulations 1987 (S.I. 1987/1968), in respect of persons who reach pensionable age on or after 10th April 2018. Article 1(2)(b) brings this Order into force for all other purposes on 9th April 2018.

An impact assessment has not been produced for this Order as it has no impact on business or civil society organisations.