1 Citation and commencement

This Order may be cited as the Social Security Pensions (Low Earnings Threshold) Order 2007 and shall come into force on 6th April 2007.

NOTES
Initial Commencement
Specified date

Specified date: 6 April 2007: see above.

2 Low earnings threshold

2Low earnings threshold

It is hereby directed that, for the purposes of the Social Security Contributions and Benefits Act 1992, the low earnings threshold for the tax years following the tax year 2006 – 2007 shall be £13,000.

NOTES
Initial Commencement
Specified date

Specified date: 6 April 2007: see art 1.

Signature

Signed by authority of the Secretary of State for Work and Pensions

James Purnell

Minister of State,

Department for Work and Pensions

8th March 2007

EXPLANATORY NOTE

EXPLANATORY NOTE (This note is not part of the Order)

This Order is made following a review by the Secretary of State under section 148A(1) of the Social Security Administration Act 1992 (c 5) of the general level of earnings in Great Britain with a view to determining whether, and if so by how much, the amount of the low earnings threshold for the purposes of the Social Security Contributions and Benefits Act 1992 (c 4) should be increased for future tax years. As a result of that review, it appears to the Secretary of State that the general level of such earnings during the period from 1st October 2005 to 30th September 2006 has increased by 4.1 per cent.

This Order directs that the low earnings threshold for the tax years following 2006–2007 shall be £13,000. The threshold for the tax year 2006–2007 was £12,500 by virtue of SI 2006/500. The low earnings threshold is the amount by reference to which the three surplus earnings bands are determined for the purpose of calculating the additional pension (the state second pension) in a state retirement pension.

A full regulatory impact assessment has not been produced for this instrument as no new impact on the private or voluntary sectors is foreseen.

State Pensions94 Pensions Law94