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Increases in disablement pension.
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6.— (1) The Principal Act is amended—
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(a) in section 3(10) by substituting “76(3), 77A” for “76(3)”,
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(b) by substituting the following section for section 77 (amended by section 8(2) of the Act of 2010):
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“Increase of disablement pension on account of incapacity.
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77.— (1) Subject to this Act, the weekly rate of disablement pension shall be increased by the amount set out in column (2) of Part 4 of Schedule 2 where, as a result of the relevant loss of faculty, the beneficiary is incapable of work and likely to remain permanently so incapable.
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(2) (a) For the purposes of this section, a person may be treated as being incapable of work, and likely to remain permanently incapable of work, notwithstanding that the loss of faculty is not such as to prevent the person being capable of work, where it is likely to restrict him or her to earning not more than the amount that may be prescribed.
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(b) In paragraph (a) the reference to ‘earning’ includes a reference to receiving any remuneration or profit derived from gainful occupation.
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(3) An increase of pension under this section (in this Chapter referred to as ‘an incapacity supplement’) shall be payable for the period that may be determined at the time it is granted, but may be renewed from time to time.”, and
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(c) by inserting the following new section after section 77:
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“Increase in disablement pension for qualified adult, qualified children etc.
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77A.— (1) Where a person qualifies for an incapacity supplement under section 77, disablement pension shall be increased for the period during which incapacity supplement is payable—
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(a) by the amount set out in column (3) of Part 4 of Schedule 2 for any period during which the beneficiary has a qualified adult, subject to the restriction that a beneficiary shall not be entitled for the same period to an increase of disablement pension under this paragraph in respect of more than one person,
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(b) by the amount set out in column (4) of Part 4 of Schedule 2 in respect of each qualified child who normally resides with the beneficiary,
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(c) by the amount set out in column (5) of Part 4 of Schedule 2 where the beneficiary is living alone, and
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(d) by the amount set out in column (6) of Part 4 of Schedule 2 where the beneficiary is ordinarily resident on an island.
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(2) Subject to subsection (3), any increase of disablement pension payable under subsection (1)(b) in respect of a qualified child who normally resides with the beneficiary and with the spouse of the beneficiary shall be payable at the rate of one-half of the appropriate amount in any case where the spouse of the beneficiary is not a qualified adult and subsection (1)(b) shall be read and have effect accordingly.
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(3) Subsection (2) shall not apply and no increase of disablement pension payable under subsection (1)(b) in respect of a qualified child who normally resides with the beneficiary and with the spouse of a beneficiary shall be payable where the weekly income of that spouse, calculated or estimated in the manner that may be prescribed, exceeds any amount that may be prescribed.”.
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(2) This section comes into operation on 7 January 2011.
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