
2022 No. 333
Pensions
The Pensions Increase (Review) Order 2022
Made 17th March 2022
Laid before Parliament 18th March 2022
Coming into force 11th April 2022

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 the 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.
Citation and Commencement
1 
This Order may be cited as the Pensions Increase (Review) Order 2022 and comes into force on 11th April 2022.
Interpretation
2 

(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 11th April 2022.
Pension increase: annual rate and lump sums
3 

(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 11th April 2022, the pension authority may increase the annual rate of the pension—
(a) for a pension which began before 12th April 2021, by 3.1 per cent;
(b) for a pension which began on or after 12th April 2021, by 3.1 per cent multiplied by—A12where A is the number of complete months in the period between the beginning date of the pension and 11th April 2022.
(3) In relation to a lump sum which is payable on or after 12th April 2021 but before 11th April 2022, the pension authority may increase the lump sum by 3.1 per cent multiplied by—A12where A is the number of complete months in the period between the beginning date for the lump sum (or, if later, 12th April 2021) and the date on which it becomes payable.
Reductions in respect of guaranteed minimum pensions
4 

(1) Where—
(a) a person is entitled to an increase in a guaranteed minimum pension on 11th April 2022; 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 provisions 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.
Alan Mak
Rebecca Harris
Two of the Lords Commissioners of Her Majesty’s Treasury
17th March 2022