Title and introductory text
2024 No. 331
PENSIONS
The Pensions Increase (Review) Order 2024
Made
4th March 2024
Laid before Parliament
8th March 2024
Coming into force
8th April 2024
The Secretary of State for Work and Pensions has, by virtue of section 151 of the Social Security Administration Act 1992, given a direction that the sums mentioned in section 150(1)(c) of that Act are to be increased by a specified percentage.
The Treasury make the following Order in exercise of the powers conferred by section 59(1), (2), (5) and (5ZA) of the Social Security Pensions Act 1975 and now vested in them.
Propose a change1 Citation, commencement and extent
(1) This Order may be cited as the Pensions Increase (Review) Order 2024 and comes into force on 8th April 2024.
(2) This Order extends to England and Wales, Scotland and Northern Ireland.
[Note: There was an error in the making of this Order. As a result, further provision which supersedes the matters set out in this Order is made in the Pensions Increase (Review) (No. 2) Order 2024 ( S.I. 2024/372).] .
Propose a change2 Interpretation
(1) In this Order, “the Act” means the Social Security Pensions Act 1975.
(2) In this Order, any reference to a pension is a reference to a pension which began before 8th April 2024.
Propose a change3 Pension increase: annual rate and lump sums
(1) This article applies to an official pension if—
(a) a qualifying condition is satisfied; or
(b) the pension is—
(i) a derivative pension;
(ii) a substituted pension; or
(iii) a relevant injury pension.
(2) In relation to any period on or after 8th April 2024, the pension authority may increase the annual rate of the pension—
(a) for a pension which began before 10th April 2023, by 6.7 per cent;
(b) for a pension which began on or after 10th April 2023, by 6.7 per cent multiplied by—
A
12
where A is the number of complete months in the period between the beginning date of the pension and 8th April 2024.
(3) In relation to a lump sum which is payable on or after 10th April 2023 but before 8th April 2024, the pension authority may increase the lump sum by 6.7 per cent multiplied by—
A
12
where A is the number of complete months in the period between the beginning date of the lump sum (or, if later, 10th April 2023) and the date on which it becomes payable.
Propose a change4 Reductions in respect of guaranteed minimum pensions
(1) Where—
(a) a person is entitled to an increase in a guaranteed minimum pension on 8th April 2024; and
(b) entitlement to that guaranteed minimum pension arises from an employment from which (either directly, or indirectly by virtue of the payment of a transfer credit) entitlement to the official pension also arises;
the amount by reference to which any increase is calculated for the purposes of article 3(2) must be reduced by an amount equal to the rate of the guaranteed minimum pension unless the Treasury otherwise direct in accordance with the provision of section 59A of the Act.
(2) Where on the death of a deceased spouse or civil partner a person becomes entitled to a guaranteed minimum pension in relation to a surviving spouse’s pension or a surviving civil partner’s pension, the amount by reference to which any increase is calculated for the purposes of article 3(2) must be reduced in accordance with section 59(5ZA) of the Act.
Propose a change