Amendment made: No. 163, in page 80, line 19, at end insert— '(3A) If an order under subsection (1) above brings paragraph 8 of Schedule 3 to this Act into force on the same day as section 34 above, the former shall be deemed to have come into force immediately before the latter.'.

No. 186, in page 80, line 26, at end insert 'section [Entitlement to mobility allowance—general];'

No. 138, in page 80, line 31, leave out '23(c)(iii)' and insert '23(b) and (c)(iii)'.

No. 139, page 80, line 32, at end insert 'section 77(2) so far as relating to paragraph 12 of Schedule lA to the Social Security Act 1975 and section 29 of the Social Security and Housing Benefits Act 1982;'—[Mr. Fowler.]

Amendment made: No. 143, New Schedule—

Earning Factors—

Social Security Act 1975 (c. 14)

1. The Social Security Act 1975 shall be amended as follows.

2. —(1) In subsection (2) of section 13 (contribution conditions and the earnings factor) for the words from "his" to "above" there shall be substituted the words "those of his earnings upon which a liability to pay Class 1 contributions arises and from his Class 2 and Class 3 contributions".

(2). In subsection (3) of that section, for the words from "primary" to the end there shall be substituted the words "earnings upon which primary Class 1 contributions are paid at the reduced rate".

(3) In subsection (4), for the words "contributions of any class" there shall be substituted the words "earnings or Class 2 or Class 3 contributions".

(4) In subsection (5) —

1. (a) for the word "contributions", in the first place where it occurs, there shall be substituted the words "earnings or Class 2 or Class 3 contributions;
2. (b) paragraph (a) shall be omitted; and
3. (c) for the words from "shall be derived" to the end of the subsection there shall be substituted the words "may be derived—
1. (i). from earnings upon which Class 1 contributions have been paid;
2. (ii). from earnings which have been credited;
3. (iii). from contributions in different classes paid or credited in the same tax year;
4. (iv). by any combination of the methods mentioned in paragraphs (i) to (iii) above."

(5) In subsection (6)(c)—

1. (a). for the words "person's contribution of any class or classes" there shall be substituted the word "person";
2. (b). for the words "those contributions" there shall be substituted the words "his earnings upon which a liability to pay Class 1 contributions arose and from his Class 2 and Class 3 contributions".

3. — (1) The following paragraph shall be substituted for sub-paragraph (2)(b) of paragraph 1 (unemployment and sickness benefit) of Schedule 3 (contribution conditions) — (b) the earnings factor derived—

1. (i). in the case of unemployment benefit, from earnings upon which a liability to pay Class 1 contributions arose; and
2. (ii) in the case of sickness benefit, from such earnings or from Class 2 contributions,

(2) In sub-paragraph (3)(a) of that paragraph, after the word "class" there shall be inserted the words "or been credited with earnings".

(3) The following paragraph shall be substituted for subparagraph (3)(b)— (b) the earnings factor derived—

1. (i). in the case of unemployment benefit, from earnings upon which a liability to pay Class 1 contributions arose or from earnings credited arose: and
2. (ii) in the case of sickness benefit, from such earnings or from Class 2 contributions,

(4) In sub-paragraph (1)(b) of paragraph 4 of that Schedule for the words "those contributions" there shall be substituted the words "earnings upon which a liability to pay Class 1 contributions arose and from Class 2 and Class 3 contributions".

(5) In sub-paragraph (2)(b) of paragraph 5 of that Schedule (widowed mother's allowance, widow's pension and retirement pensions) for the words "those contributions" there shall be substituted the words "earnings upon which such of those contributions as are Class 1 contributions were paid and any Class 2 or Class 3 contributions".

(6) The following paragraph shall be substituted for sub-paragraph (3)(b) of that paragraph— (b) in the case of each of those years, the earnings factor derived from—

1. (i) any earnings upon which such of those contributions as are Class 1 contributions were paid or earnings credited; and
2. (ii) any Class 2 or Class 3 contributions for the year," must not be less than the qualifying earnings factor for the year."

(7) In paragraph 8(3) (satisfaction of certain contribution conditions in early years of contribution) for the words from "his contributions of a relevant class" there shall be substituted the words "the aggregate of his earnings upon which Class 1 contributions were actually paid and from Class 2 contributions".

Social Security Pensions Act 1975 (c. 60.)

4. The Social Security Pensions Act 1975 shall be amended as follows.

5. —(1) In section 6 (rate of Categoory A retirement pension) — (a) In section (5), for the words "contributions actually paid by him in respect of that year" there shall be substituted the words "earnings upon which Class 1 contributions were actually paid by him in respect of that year and earnings factors derived from Class 2 and Class 3 contributions actually paid in respect of it"; and (b) subsection (5A) shall be omitted.

6. —(1) In subsection (2) of section 35 (earner's guaranteed minimum) for the words "contributions paid in respec7. of such earnings as are mentioned in subsection (1) above" there shall be substituted the word "earnings such as are mentioned in subsection (1) above upon which liability to pay Class 1 contributions arose".

(7). Section 43(1A) and section 47(2A) shall not apply to any period after the end of the tax year 1986–87.

(8). In subsection (3)(b) of section 45 (premium where guaranteed minimum pension excluded from full revaluation) for the word "contributions", in the first place where it occurs, there shall be substituted the words "earnings upon which Class 1 contributions are payable".

Social Security (Miscellaneous Provisions) Act 1977 (c. 5.)

9. In subsection (1)(b) of section 21 of the Social Security (Miscellaneous Provisions) Act 1977 (calculation of guaranteed minimum pensions preserved under proposed arrangements) after the word "contributions", in the first place where it occurs. there shall be insert the words "or earnings".'. —[Mr. Fowler.]