National Insurance Act 1974
National Insurance Act 1974
1974 CHAPTER 14
An Act to amend the provisions of the National Insurance Acts 1965 to 1973, the National Insurance (Industrial Injuries) Acts 1965 to 1973 and the Industrial Injuries and Diseases (Old Cases) Acts 1967 to 1973 as to the rate or amount of benefit and contributions; to amend section 39 of the Social Security Act 1973 and to make minor amendments of certain other enactments relating to social security; and for purposes connected with those matters.
[13th May 1974]
Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—
Benefits and contributions
1 Weekly rates of benefits under National InsuranceActs 1965 and 1966.
(1) In the National Insurance Act 1965 (hereafter in this Act referred to as ‘the Insurance Act’), in Schedule 3 (which sets out the weekly rates of benefits under that Act) there shall be substituted the provisions set out in Schedule 1 to this Act for those set out in Schedule 1 to the National Insurance and Supplementary Benefit Act 1973 (hereafter in this Act referred to as ‘the Act of 1973’).
(2) In sections 2(4) and 4(1) of the National Insurance Act 1966 , in the words inserted by the amendments made by section 6 of the National Insurance Act 1971 (under which certain of the Act of 1973.
2 Contributions under National Insurance Act 1965.
(1) In the Insurance Act, in Schedule 1 (which sets out the weekly rates of contributions under that Act) there shall be substituted the provisions set out in Schedule 2 to this Act for those set out in Schedule 2 to the Act of 1973 and section 5(1) of the Pensioners' Payments and National Insurance Act 1973 ;and there shall be paid out of money provided by Parliament any increase resulting from this subsection in the sums so payable by way of Exchequer supplement under section 7 of the Insurance Act.
(2) In section 4(1) of the Insurance Act, in the paragraph (c of the National Insurance Act 1969—
(a ) in sub-paragraphs (i) and (ii) (whereby, as those sub-paragraphs were originally enacted, the amount of any graduated contribution included 4
per cent. of any amount, up to 9, by which the relevant payment of remuneration exceeded 9 in the case of an employment other than a non-participating employment and3 4
per cent. of that amount in the case of a non-participating employment), for the words ‘41 2
per cent.’ and ‘3 4
per cent.’ there shall be substituted respectively the words ‘5.50 per cent.’ and ‘1.25 per cent.’ instead of the 5 per cent. and the 0.75 per cent. substituted by section 2(2) of the Act of 1973; and 1 2
(b ) in the words following those sub-paragraphs (whereby, as those words were originally enacted, the amount of any graduated contribution included 3
per cent. of any amount, up to 12, by which the relevant payment of remuneration exceeded 18), for the words ‘31 4
per cent.’ and ‘12’ there shall be substituted respectively the words ‘5.50 per cent.’ and ‘44’ instead of the 5 per cent. and 36 substituted by section 2(2) of the Act of 1973. 1 4
(3) In sub-paragraph (iii) of section 10(1)(a of the Act of 1973, provides that regulations may except persons from liability to pay contributions where they are not in receipt of an annual income exceeding 520), for the word ‘520’ there shall be substituted the word ‘650’; and the like substitution shall be made in any regulations in force by virtue of the said sub-paragraph (iii) at the passing of this Act.
(4) The contributions to be paid under the Insurance Act in respect of the financial year 1974-75 out of money provided by Parliament shall include, in addition to the Exchequer supplements, the sum of 315 million instead of the amount required in respect of that year by subsection (4) of section 2 of the Act of 1973, and the contributions under this subsection shall be paid in such manner and at such times as the Treasury may determine.
3 Industrial injuries and diseases \(benefits andcontributions).
(1) In the National Insurance (Industrial Injuries) Act 1965 (hereafter in this Act referred to as ‘the Industrial Injuries Act’), in Schedule 3 (which sets out the weekly rate or amount of benefit) there shall be substituted the provisions set out in Schedule 3 to this Act for those set out in Schedule 3 to the Act of 1973.
(2) In the Old Cases Act the word ‘6.05’ (instead of the word ‘4.70’ substituted by section 3(3) of the Act of 1973) shall be substituted—
(a ) for the rate specified in section 2(6)(c ) (maximum weekly rate of a lesser incapacity allowance supplementing workmen's compensation); and
(b ) for the rate specified in section 7(2)(b ) (industrial diseases benefit schemes: weekly rate of an allowance payable where disablement is not total).
(3) In Part I of Schedule 2 to the Industrial Injuries Act, as amended by section 3(4) of the Act of 1973, in column 3 (which sets out the weekly rate of employers' contributions under the Industrial Injuries Act)—
(a ) the rate of 9p applicable where the insured person is a man over the age of 18 shall be amended to 11p;
(b ) the rate of 7p applicable where the insured person is a woman over that age shall be amended to 9p;
(c ) the rate of 4p applicable where the insured person is a boy under that age shall be amended to 5p; and
(d ) the rate of 3p applicable where the insured person is a girl under that age shall be amended to 4p;
and there shall be paid out of money provided by Parliament any increase resulting from these amendments in the contributions so payable under section 2(1)(b ) of the Industrial Injuries Act.
4 Relaxation of the earnings rule.
(1) In section 30(7) of the Insurance Act (which, as amended by section 1(1) of the National Insurance (Amendment) Act 1972 , provides for the reduction of a retirement pension for any week where the beneficiary is under 5 years over pensionable age and his or her earnings for the preceding week exceeded 9.50) and in section 43A(2) of that Act and section 18(3A) of the Industrial Injuries Act (which provide for the reduction of an increase under the said section 43A or 18 of a retirement, invalidity or disablement pension for any week where the beneficiary is residing with his wife and her earnings for the preceding week exceeded 9.50), for the word ‘9.50’ there shall be substituted the word ‘13’.
(2) In paragraphs (a ) and (b and 18(3A) (which provide that the reduction shall be 5p for each 10p of so much of the excess earnings as is less than 2 and 5p for each 5p of any further excess), for the word ‘2’ wherever it occurs there shall be substituted the word ‘4’.
Miscellaneous
5 Amendment of s. 39 of the Social Security Act 1973.
(1) Section 39 of the Social Security Act 1973 (which provides for the annual review of benefits for the purpose of up-rating) shall have effect in relation to relevant benefits as if in subsection (3)(a ) (by virtue of which the Secretary of State is required in the course of a review to have regard to the extent to which current rates of benefit have retained their value in relation to the general level of prices obtaining in Great Britain since the end of the previous review period or, in the case of the first review, since the beginning of the income tax year in which the section came into force) for the word ‘prices’ there were substituted the word ‘earnings’; but it shall be the duty of the Secretary of State to disregard that amendment in connection with a particular review if he considers that it would be to the advantage of beneficiaries to do so.
(2) In the preceding subsection ‘relevant benefits’ means—
(a ) the benefits mentioned in Part I of Schedule 4 to the Social Security Act 1973 except unemployment or sickness benefit where the beneficiary is under pensionable age and except maternity allowance and age addition;
(b ) the increases mentioned in Part III of that Schedule except an increase of unemployment or sickness benefit where the beneficiary is under pensionable age and except an increase of maternity allowance;
(c ) the benefits and increases mentioned in Schedule 3 to the Industrial Injuries Act (including the maxima mentioned in paragraph 12 of that Schedule) except injury benefit, an increase of injury benefit in respect of a child or adult dependant, an increase of disablement pension in respect of a child or adult dependant where the beneficiary is not entitled to an unemployability supplement and except an allowance in respect of a deceased's children under section 21(1) of that Act; and
(d ) the allowances to which section 3(2) of this Act relates;
and in this subsection ‘pensionable age’ has the same meaning as in the Social Security Act 1973 and ‘beneficiary’ means the person entitled to the benefit or increase in question.
(3) In subsection (3) of the said section 39, after paragraph (b )there shall be inserted the following paragraph—
(c ) the rate of change in the general level of prices and earnings with a view to considering the desirability of introducing legislation requiring more frequent reviews of benefit than is provided for in this section.
(4) After subsection (10) of the said section 39 there shall be inserted...
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