National Insurance Act 1971

JurisdictionUK Non-devolved
Citation1971 c. 50


National Insurance Act 1971

1971 CHAPTER 50

An Act to amend the provisions of the National Insurance Acts 1965 to 1970, the National Insurance (Industrial Injuries) Acts 1965 to 1969 and the Industrial Injuries and Diseases (Old Cases) Acts 1967 and 1969 as to contributions and benefits; to make provision for invalidity benefit for the chronic sick and for a retirement pension and age addition for certain persons over the age of eighty; to make new provision in relation to polygamous marriages for the purposes of any of the said Acts or of the Family Allowances Act 1965; and for purposes connected with those matters.

[14th July 1971]

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:—

National insurance

National insurance

S-1 Revision of contributions under Insurance Act.

1 Revision of contributions under Insurance Act.

(1) In the Insurance Act for the provisions of Schedule 1 (weekly rate of contributions under that Act) there shall be substituted the provisions set out in Schedule 1 to this Act (being provisions revising the rates of contributions).

(2) There shall be paid out of money provided by Parliament any increase resulting from subsection (1) above in the sums so payable by way of Exchequer supplement under section 7 of the Insurance Act.

(3) In section 4(1)(c ) of the Insurance Act (aggregate amount of graduated contributions) for the proportion ‘314 per cent’ (aggregate contribution payable in respect of any amount, up to 12, by which a person's weekly remuneration exceeds 18) there shall be substituted the proportion ‘4.35 per cent.’ and for the sum of 12 there shall be substituted the sum of 24.

(4) In section 10 of the Insurance Act (exception from liability for, and crediting of, contributions)—

(a ) in subsection (1)(a )(iii) (regulations may except persons whose annual income does not exceed 312 or such higher amount as may be prescribed) for the sum of 312 there shall be substituted the sum of 468; and

(b ) in subsection (2) (persons excepted under subsection (1)(a )(iii) to be credited with contributions only for the purposes of entitlement to unemployment benefit and sickness benefit) for the words ‘by virtue of the said paragraph (a )(iii)’ there shall be substituted the words ‘by virtue only of sub-paragraph (iii) (and no other sub-paragraph) of the said paragraph (a )’;

and the like substitution as is specified in paragraph (a ) above shall be made in any regulations made under the said subsection (1)(a )(iii) which are in force at the passing of this Act.

(5) The contributions to be paid under the Insurance Act out of money provided by Parliament shall include, in addition to the Exchequer supplements,—

(a ) in respect of the financial year 1971-72, the sum of 135 million;

(b ) in respect of the financial year 1972-73, the sum of 135 million; and

(c ) in respect of each subsequent financial year the sum of 185 million;

and those contributions shall be paid in such manner and at such times as the Treasury may determine.

S-2 Revision of benefits under Insurance Act.

2 Revision of benefits under Insurance Act.

(1) For the provisions of Schedule 3 to the Insurance Act (rates of benefit) there shall be substituted the provisions set out in Schedule 2 to this Act (being provisions giving effect to increases in the rates of benefit and to the following provisions of this Act).

(2) For section 30(7) of the Insurance Act there shall be substituted—

(7) Subject to any regulations under section 44(a ) of this Act, where the earnings of a beneficiary who is less than five years over pensionable age have exceeded 9.50 for the calendar week ending last before any week for which he is entitled to a retirement pension, the weekly rate of his pension shall for the last-mentioned week be reduced—

(a ) where the excess is less than 2.00, by 5 new pence for each complete 10 new pence of the excess, and

(b ) where the excess is not less than 2.00 by 5 new pence for each complete 10 new pence of the excess up to 2.00 and by 5 new pence for each complete 5 new pence of any further excess:

Provided that this subsection shall not affect the rate of the pension for the first week after the date of the beneficiary's retirement.’

(3) In section 31(1) of the Insurance Act (increase of 5 new pence in a person's retirement pension in respect of every nine contributions paid by him after attaining pensionable age) for the words ‘by 5 new pence’ there shall be substituted the words ‘by 6 new pence’, and in paragraphs (a ) and (b ) of section 34(1) of that Act (retirement pension of the wife or widow of such a person to be increased by 212 new pence for every nine contributions) for the words ‘212 new pence’, in each place where they occur, there shall be substituted the words ‘3 new pence’.

S-3 Invalidity benefit for chronic sick.

3 Invalidity benefit for chronic sick.

(1) Subject to the following provisions of this section where, in respect of any period of interruption of employment, a person has been entitled to sickness benefit for 168 days, then—

(a ) he shall cease to be entitled to that benefit for any subsequent day of incapacity for work falling within that period; and

(b ) unless he is over pensionable age and has retired from regular employment, he shall be entitled to an invalidity pension for any day of incapacity for work in that period for which, by virtue of paragraph (a ) above, he is not entitled to sickness benefit;

and any day in the first three days of a period of interruption of employment which was a day of incapacity for work but for which the person concerned was not entitled to sickness benefit shall be treated for the purposes of this subsection as a day on which he was so entitled.

(2) Subsection (1) above shall not apply in relation to any day of incapacity for work (beginning after the expiry of the 168 days referred to in that subsection) if the person concerned has paid, in respect of the period between his entry into insurance and that day, less than 156 contributions of the appropriate class, and accordingly, subject to the provisions of the Insurance Act, that person shall continue to be entitled to sickness benefit for that day.

(3) Subject to subsection (4) below, invalidity pension shall be payable at the weekly rate specified in relation thereto in Part I of Schedule 3 to the Insurance Act.

(4) If a person claiming invalidity pension for any day—

(a ) is over pensionable age but has not retired from regular employment; and

(b ) would on that day be entitled to a retirement pension if he had retired from regular employment on attaining pensionable age and made the necessary claim,

the invalidity pension shall be payable at the weekly rate at which, disregarding any increase by virtue of any provision of the Insurance Act (but having regard to subsection (6) below), the retirement pension would have been payable.

(5) If a person is more than five years below pensionable age on the qualifying date in any period of interruption of employment then, in respect of every day of that period in respect of which he is entitled to an invalidity pension, he shall also be entitled to an invalidity allowance at the weekly rate specified in relation thereto in Part I of Schedule 3 to the Insurance Act; and for the purposes of invalidity allowance, ‘the qualifying date’, in relation to a period of interruption of employment, means the first day in that period (whether before the passing of this Act or later) which is a day of incapacity for work or such earlier day as may be prescribed.

(6) Subject to subsection (7) below, if a person is entitled to invalidity allowance in respect of—

(a ) any day falling within the period of 13 weeks ending immediately before the day on which he attains pensionable age, or

(b ) the last day before the beginning of that period,

the weekly rate of the retirement pension payable to him shall be increased by an amount equal to the weekly rate of the invalidity allowance to which he was entitled on that day.

(7) Subsection (6) above shall not apply to the retirement pension payable to a woman by virtue of her husband's insurance except in a case where, apart from an election under section 33 of the Insurance Act, she would have been entitled to a retirement pension by virtue of her own insurance.

(8) In a case where section 19(3) of the Insurance Act applies (rate of unemployment and sickness benefit for persons over pensionable age limited to amount of potential retirement pension) an increase in a retirement pension by virtue of subsection (6) above (unlike increases by virtue of other provisions) shall be taken into account for the purpose of determining the weekly rate of sickness benefit.

(9) The amount payable by way of benefit under this section for any day of incapacity for work shall be one-sixth of the appropriate weekly rate.

S-4 Increase of retirement pension or invalidity pensionfor adult dependants.

4 Increase of retirement pension or invalidity pensionfor adult dependants.

4. After section 43 of the Insurance Act there shall be inserted the following section—

S-43A

43A

(1) Subject to the provisions of this section, the weekly rate of a retirement pension or invalidity pension shall be increased by the amount respectively specified in relation to the benefit in question in column 5 of Part II of Schedule 3 to this Act—

(a ) for any period during which the beneficiary is residing with his wife, or

(b ) for any period during which the beneficiary is contributing to the maintenance of his wife at a weekly rate of not less than the said amount, and his wife is not...

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