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United Kingdom
| Total population (m.): | 61.9 |
| GDP per capita (USD): | 35130 |
Old Age, Disability and Survivors
Regulatory Framework
First laws: 1908 (old-age pension), 1911 (disability insurance), and 1925 (old-age and survivor insurance).
Current laws: 1992 (Social Security Contributions and Benefits Act, Chapter 4 of 13 February), 1995 (Pensions Act, Chapter 26 of 19 July), 1999 (Welfare Reform and Pensions Act, Chapter 30), 2000 (Child Support, Pensions, and Social Security, Chapter 19), 2002 (State Pension Credit Act, Chapter 16), 2004 (Pensions Act, Chapter 35), and 2007 (Pensions Act, Chapter 22).
Type of program: Social insurance and social assistance system.
Current laws: 1992 (Social Security Contributions and Benefits Act, Chapter 4 of 13 February), 1995 (Pensions Act, Chapter 26 of 19 July), 1999 (Welfare Reform and Pensions Act, Chapter 30), 2000 (Child Support, Pensions, and Social Security, Chapter 19), 2002 (State Pension Credit Act, Chapter 16), 2004 (Pensions Act, Chapter 35), and 2007 (Pensions Act, Chapter 22).
Type of program: Social insurance and social assistance system.
Coverage
Contributory benefits: Employed persons aged 16 to 65 (men) or aged 16 to 60 (women) with weekly earnings of £97 to £844 (April 2010).
Self-employed persons aged 16 to 65 (men) or aged 16 to 60 (women) with annual income of at least £5,075 are covered for all benefits except the state second pension, work injury benefits, and contributory jobseeker's allowance.
Voluntary contributors are covered for the basic state retirement pension and survivor benefits only.
Employment and support allowance (incapacity benefit): All employed and self-employed who are not eligible for statutory sick pay; unemployed and nonemployed persons who satisfy contribution conditions.
Noncontributory benefits: All persons residing in the United Kingdom.
Self-employed persons aged 16 to 65 (men) or aged 16 to 60 (women) with annual income of at least £5,075 are covered for all benefits except the state second pension, work injury benefits, and contributory jobseeker's allowance.
Voluntary contributors are covered for the basic state retirement pension and survivor benefits only.
Employment and support allowance (incapacity benefit): All employed and self-employed who are not eligible for statutory sick pay; unemployed and nonemployed persons who satisfy contribution conditions.
Noncontributory benefits: All persons residing in the United Kingdom.
Source of funds
Insured person: 11% of weekly earnings from £110 to £844 (April 2010); certain married women and widows contribute 4.85% of weekly earnings from £110 to £844 plus 1% of weekly earnings greater than £844.
Voluntary contributors pay a flat-rate of £12.05 a week.
From the insured's contributions, 2.05% on earnings from £110 to £844 a week and 1% over £844 is allocated to the National Health Service for medical benefits. The insured's contributions also finance sickness and maternity benefits, work injury benefits, and unemployment benefits.
Self-employed person: A flat-rate of £2.40 a week if earnings are greater than £5,075 plus 8% of declared annual earnings from £5,715 to £43,875 plus 1% of declared annual earnings greater than £43,875 (April 2010).
15.5% of the self-employed person's contribution is allocated to the National Health Service for medical benefits.
Employer: 12.8% of each employee's earnings greater than £110 a week (April 2010).
1.9% of the employer's contribution is allocated to the National Health Service for medical benefits. The employer's contributions also finance sickness and maternity benefits, work injury benefits, and unemployment benefits.
Government: The total cost of means-tested allowances and other noncontributory benefits. Also pays a treasury grant to contributory programs for any deficit.
Voluntary contributors pay a flat-rate of £12.05 a week.
From the insured's contributions, 2.05% on earnings from £110 to £844 a week and 1% over £844 is allocated to the National Health Service for medical benefits. The insured's contributions also finance sickness and maternity benefits, work injury benefits, and unemployment benefits.
Self-employed person: A flat-rate of £2.40 a week if earnings are greater than £5,075 plus 8% of declared annual earnings from £5,715 to £43,875 plus 1% of declared annual earnings greater than £43,875 (April 2010).
15.5% of the self-employed person's contribution is allocated to the National Health Service for medical benefits.
Employer: 12.8% of each employee's earnings greater than £110 a week (April 2010).
1.9% of the employer's contribution is allocated to the National Health Service for medical benefits. The employer's contributions also finance sickness and maternity benefits, work injury benefits, and unemployment benefits.
Government: The total cost of means-tested allowances and other noncontributory benefits. Also pays a treasury grant to contributory programs for any deficit.
Qualifying conditions
Basic state retirement pension (flat-rate): Age 65 (men) or age 60 (women, rising gradually to age 65 from 2010 to 2020) with 30 years of paid or credited contributions (April 2010).
The number of years needed for a full pension is reduced if the insured is caring for a child or an elderly or disabled relative. Credit is given for periods of time during which the insured received certain benefits (such as the incapacity benefit and jobseeker's allowance).
Partial pension: A proportionately reduced pension is paid if the insured has at least one qualifying year of contributions (for people who reach state pension age on or after April 6, 2010) and is entitled to at least 25% of the full pension.
Deferred pension: A deferred pension is paid. There is no age limit.
Age addition: Aged 80 or older.
The basic retirement pension is payable abroad, but is adjusted only if ordinarily residing in a country of the European Union or in a country that has a reciprocal agreement.
State second pension (SSP): Age 65 (men) or age 60 (women, rising gradually to age 65 from 2010 to 2020). The SSP is paid in addition to the basic state pension. A person earning more than the lower earnings limit but less than £14,100 (April 2010) is treated for SSP purposes as if they had earnings of £14,100.
The annual lower earnings limit is £5,044.
The pension is payable abroad, but is adjusted only if ordinarily residing in a country of the European Union or in a country that has a reciprocal agreement.
Old-person's pension (noncontributory retirement pension): Paid if aged 80 or older and the pensioner is entitled to less than 60% of the full basic state pension. The pensioner must have resided in the United Kingdom for at least 10 years in any 20-year consecutive period after age 60.
Pension credit: Awarded to low-income pensioners aged 60 or older (rising gradually to age 65 from 2010 to 2020) residing in the United Kingdom. Also awarded to persons aged 65 or older who have made modest provision for retirement.
The pension credit can only be paid abroad for a temporary absence from the United Kingdom.
Employment and support allowance (incapacity benefit): The allowance is paid according to the insured's income, working capacity, age, and marital status, and is not paid if savings exceed £16,000 or if the insured's partner works for more than 24 hours a week.
Contributions must be paid on earnings of at least 25 times the weekly lower earnings limit in one of the last 3 tax years before the claim is made plus contributions paid on earnings of at least 50 times the weekly lower earnings limit in both of the last 2 tax years before the claim is made.
The weekly lower earnings limit is £97 (April 2010).
Noncontributory means-tested benefits may be paid if the insured does not meet the contribution requirements, including young people with disabilities that began before age 20 (age 25 if a full-time student or trainee).
Disability living allowance (noncontributory, no means test): Paid if the disability began before age 65 (can be paid beyond age 65). The allowance is usually paid after 3 months of disability (except if terminally ill). The amount is determined by care and mobility needs.
Attendance allowance (noncontributory, no means test): Paid if the disability began at age 65 or older. The allowance is usually paid after 6 months of disability (except if terminally ill).
Caregiver's allowance (noncontributory, no means test): Paid to a person who forgoes full-time work to provide at least 35 hours a week of care for a person with a severe disability who receives certain qualifying benefits. The caregiver must be from age 16 to age 65 at the time of the claim and not be a full-time student or earning more than £95 a week.
Disability living allowance, attendance allowance, and caregiver's allowance are payable abroad as long as a person ordinarily resides in Great Britain. A temporary absence of up to 26 weeks does not affect entitlement.
Widowed parent's allowance: The deceased met the contribution qualifying conditions for an old-age pension or was a pensioner at the time of death. Paid to widow(er)s who have children for whom they receive child benefits and to pregnant widows. The survivor must be younger than the normal pensionable age.
Bereavement allowance: The deceased met the contribution qualifying conditions for an old-age pension or was a pensioner at the time of death. A weekly benefit is paid to a surviving spouse aged 45 or older without dependent children. The allowance is paid for 52 weeks following the date of widowhood.
Bereavement payment: The deceased met the contribution qualifying conditions for an old-age pension or was a pensioner at the time of death. A lump sum is paid to help with costs arising on the death of a spouse.
Guardian's allowance: The deceased met the contribution qualifying conditions for an old-age pension or was a pensioner at the time of death. Paid for a person rearing a full orphan or, in certain cases, a child with one surviving parent.
The bereavement allowance, bereavement payment, and guardian's allowance are payable abroad, but are adjusted only if ordinarily residing in a country of the European Union or in a country that has a reciprocal agreement with the United Kingdom.
The number of years needed for a full pension is reduced if the insured is caring for a child or an elderly or disabled relative. Credit is given for periods of time during which the insured received certain benefits (such as the incapacity benefit and jobseeker's allowance).
Partial pension: A proportionately reduced pension is paid if the insured has at least one qualifying year of contributions (for people who reach state pension age on or after April 6, 2010) and is entitled to at least 25% of the full pension.
Deferred pension: A deferred pension is paid. There is no age limit.
Age addition: Aged 80 or older.
The basic retirement pension is payable abroad, but is adjusted only if ordinarily residing in a country of the European Union or in a country that has a reciprocal agreement.
State second pension (SSP): Age 65 (men) or age 60 (women, rising gradually to age 65 from 2010 to 2020). The SSP is paid in addition to the basic state pension. A person earning more than the lower earnings limit but less than £14,100 (April 2010) is treated for SSP purposes as if they had earnings of £14,100.
The annual lower earnings limit is £5,044.
The pension is payable abroad, but is adjusted only if ordinarily residing in a country of the European Union or in a country that has a reciprocal agreement.
Old-person's pension (noncontributory retirement pension): Paid if aged 80 or older and the pensioner is entitled to less than 60% of the full basic state pension. The pensioner must have resided in the United Kingdom for at least 10 years in any 20-year consecutive period after age 60.
Pension credit: Awarded to low-income pensioners aged 60 or older (rising gradually to age 65 from 2010 to 2020) residing in the United Kingdom. Also awarded to persons aged 65 or older who have made modest provision for retirement.
The pension credit can only be paid abroad for a temporary absence from the United Kingdom.
Employment and support allowance (incapacity benefit): The allowance is paid according to the insured's income, working capacity, age, and marital status, and is not paid if savings exceed £16,000 or if the insured's partner works for more than 24 hours a week.
Contributions must be paid on earnings of at least 25 times the weekly lower earnings limit in one of the last 3 tax years before the claim is made plus contributions paid on earnings of at least 50 times the weekly lower earnings limit in both of the last 2 tax years before the claim is made.
The weekly lower earnings limit is £97 (April 2010).
Noncontributory means-tested benefits may be paid if the insured does not meet the contribution requirements, including young people with disabilities that began before age 20 (age 25 if a full-time student or trainee).
Disability living allowance (noncontributory, no means test): Paid if the disability began before age 65 (can be paid beyond age 65). The allowance is usually paid after 3 months of disability (except if terminally ill). The amount is determined by care and mobility needs.
Attendance allowance (noncontributory, no means test): Paid if the disability began at age 65 or older. The allowance is usually paid after 6 months of disability (except if terminally ill).
Caregiver's allowance (noncontributory, no means test): Paid to a person who forgoes full-time work to provide at least 35 hours a week of care for a person with a severe disability who receives certain qualifying benefits. The caregiver must be from age 16 to age 65 at the time of the claim and not be a full-time student or earning more than £95 a week.
Disability living allowance, attendance allowance, and caregiver's allowance are payable abroad as long as a person ordinarily resides in Great Britain. A temporary absence of up to 26 weeks does not affect entitlement.
Widowed parent's allowance: The deceased met the contribution qualifying conditions for an old-age pension or was a pensioner at the time of death. Paid to widow(er)s who have children for whom they receive child benefits and to pregnant widows. The survivor must be younger than the normal pensionable age.
Bereavement allowance: The deceased met the contribution qualifying conditions for an old-age pension or was a pensioner at the time of death. A weekly benefit is paid to a surviving spouse aged 45 or older without dependent children. The allowance is paid for 52 weeks following the date of widowhood.
Bereavement payment: The deceased met the contribution qualifying conditions for an old-age pension or was a pensioner at the time of death. A lump sum is paid to help with costs arising on the death of a spouse.
Guardian's allowance: The deceased met the contribution qualifying conditions for an old-age pension or was a pensioner at the time of death. Paid for a person rearing a full orphan or, in certain cases, a child with one surviving parent.
The bereavement allowance, bereavement payment, and guardian's allowance are payable abroad, but are adjusted only if ordinarily residing in a country of the European Union or in a country that has a reciprocal agreement with the United Kingdom.
Cash benefits for insured workers (except permanent disability)
Basic state retirement pension (flat-rate): The maximum weekly pension is £97.65 (April 2010).
Dependent's supplement: £58.50 a week (April 2010) is paid for a dependent adult if the dependent's earnings from work are below a specified amount. This supplement is being phased out as of April 2010; existing supplements will be paid until April 2020.
Deferred pension: The pension is increased by approximately 10.4% for each year of deferral. Insured persons who defer for at least 12 consecutive months can opt to take the deferred state pension as a one-time taxable lump sum plus interest.
Age addition: £0.25 a week is paid.
State second pension (SSP): The pension is based on average indexed earnings.
Old-person's pension (noncontributory retirement pension): £58.50 a week (April 2010) is paid minus any old-age pension. Any state pension in payment is deducted from this amount.
Benefit adjustment: Benefits are adjusted annually according to changes in the retail price index from the previous September.
Pension credit: At least £132.60 a week (unmarried person) or £202.40 a week (couple), including their other income, is paid. Persons aged 65 or older may receive an additional amount if they have savings or other nonstate pensions.
Dependent's supplement: £58.50 a week (April 2010) is paid for a dependent adult if the dependent's earnings from work are below a specified amount. This supplement is being phased out as of April 2010; existing supplements will be paid until April 2020.
Deferred pension: The pension is increased by approximately 10.4% for each year of deferral. Insured persons who defer for at least 12 consecutive months can opt to take the deferred state pension as a one-time taxable lump sum plus interest.
Age addition: £0.25 a week is paid.
State second pension (SSP): The pension is based on average indexed earnings.
Old-person's pension (noncontributory retirement pension): £58.50 a week (April 2010) is paid minus any old-age pension. Any state pension in payment is deducted from this amount.
Benefit adjustment: Benefits are adjusted annually according to changes in the retail price index from the previous September.
Pension credit: At least £132.60 a week (unmarried person) or £202.40 a week (couple), including their other income, is paid. Persons aged 65 or older may receive an additional amount if they have savings or other nonstate pensions.
Permanent disability benefits for insured workers
Employment and support allowance: £65.45 week (April 2010) is paid after a 3-day waiting period for up to 13 weeks while the capacity for work is assessed. After the assessment, £65.45 a week is paid plus a support component of £31.40 a week (April 2010) if the disability has a severe effect on the ability to work or a work-related activity component of £25.95 a week (April 2010) if there is capacity for limited work.
Disability living allowance (noncontributory, no means test): The care component is £71.40, £47.80, or £18.95 a week according to need (April 2010). The mobility component is £49.85 or £18.95 a week according to need (April 2010).
Attendance allowance (noncontributory, no means test): £47.80 or £71.40 a week is paid according to need (April 2010).
Caregiver's allowance (noncontributory, no means test): £53.90 a week (April 2010) is paid plus dependent supplements.
Benefit adjustment: Benefits are adjusted annually according to changes in the retail price index from the previous September.
Disability living allowance (noncontributory, no means test): The care component is £71.40, £47.80, or £18.95 a week according to need (April 2010). The mobility component is £49.85 or £18.95 a week according to need (April 2010).
Attendance allowance (noncontributory, no means test): £47.80 or £71.40 a week is paid according to need (April 2010).
Caregiver's allowance (noncontributory, no means test): £53.90 a week (April 2010) is paid plus dependent supplements.
Benefit adjustment: Benefits are adjusted annually according to changes in the retail price index from the previous September.
Survivors benefits for dependents
Widowed parent's allowance: £97.65 a week (April 2010) is paid.
Bereavement allowance: The amount varies with the survivor's age when widowed or when the widowed parent's allowance ends: £97.65 a week (April 2010) if aged 55 or older; a percentage of the full rate if aged 45 to 54.
Bereavement payment: A lump sum of £2,000 is paid immediately to the surviving spouse.
Guardian's allowance: £14.30 a week is paid per child.
Benefit adjustment: Benefits are adjusted annually according to changes in the retail price index from the previous September.
Bereavement allowance: The amount varies with the survivor's age when widowed or when the widowed parent's allowance ends: £97.65 a week (April 2010) if aged 55 or older; a percentage of the full rate if aged 45 to 54.
Bereavement payment: A lump sum of £2,000 is paid immediately to the surviving spouse.
Guardian's allowance: £14.30 a week is paid per child.
Benefit adjustment: Benefits are adjusted annually according to changes in the retail price index from the previous September.
Administrative organization
Pension Service (http://www.thepensionservice.gov.uk,) of the Department for Work and Pensions, administers the state pension scheme and provides services and support to pensioners.
Pension Service
Customer Services,
Quarry House,
Quarry Hill,
Leeds LS2 7UA,
United Kingdom
Tel.: +(44) 0113 232 4871
Her Majesty's Revenue and Customs (http://www.hmrc.gov.uk) administers the National Insurance contribution system.
HM Revenue and Customs
Somerset House,
Strand,
London WC2R 1LB,
United Kingdom
Tel.: +(44) 0845 010 9000
Jobcentre Plus (http://www.jobcentreplus.gov.uk) of the Department for Work and Pensions administers benefits for people of working age and helps them find work.
Pension Service
Customer Services,
Quarry House,
Quarry Hill,
Leeds LS2 7UA,
United Kingdom
Tel.: +(44) 0113 232 4871
Her Majesty's Revenue and Customs (http://www.hmrc.gov.uk) administers the National Insurance contribution system.
HM Revenue and Customs
Somerset House,
Strand,
London WC2R 1LB,
United Kingdom
Tel.: +(44) 0845 010 9000
Jobcentre Plus (http://www.jobcentreplus.gov.uk) of the Department for Work and Pensions administers benefits for people of working age and helps them find work.
Jobcentre Plus
Directors Office,
Ground Floor,
Steel City House,
West Street,
Sheffield S1 2GQ,
United Kingdom
Tel.: +(44) 114 259 6178
Last survey reply: 01 January 2010
Last ISSA update: 01 January 2010
Exchange rate: US$1.00 equals 0.62 pounds (£).