Increase in Low Earnings Threshold

The increase was announced in the Social Security Revaluation of Earnings Factors Order 2005 put before Parliament last week according to the DWP. The Order is repeated annually for setting a new Low Earnings Threshold for the State Second Pension (in this case for 2005/06), which is linked to the movement in average earnings. The State Second Pension replaced the State Earnings-Related Pension Scheme (SERPS) on 6 April 2002. Incremental within the reform is that earnings being used to exact an additional pension, which fall between the National Insurance Lower Earnings Limit (LEL) and t...