Article 2 of this Order specifies that the increase in the general level of earnings for the period from 1st August 2018 to 31st July 2019 is 3.9%. Accordingly, article 3 specifies that the levy ceiling for the financial year beginning on 1st April 2020 is £1,099,445,505. 

The compensation cap is used by the Board to determine the amount of compensation payable to a person who is under normal pension age on the assessment date (as described in paragraphs 2 and 34 of Schedule 7 to the Act) and whose compensation is not derived from a survivor’s pension or a pension payable on the grounds of ill health. The amount of compensation payable must be restricted in accordance with paragraph 26 of Schedule 7 to the Act in cases referred to in that paragraph. Where that paragraph applies, the Board uses the compensation cap to determine the amount of compensation payable. 

Article 4 provides that the standard amount of the compensation cap under paragraph 26A(7)(a) of Schedule 7 to the Act is £41,461.07 from 1st April 2020. This is an increase on the previous standard amount to reflect a higher general level of earnings. 

Article 5 revokes the 2019 Order. 

This Order amends an existing regulatory regime by a pre-determined formula and the associated administrative costs or savings for the private sector and civil society organisations are negligible. A full impact assessment is not necessary for such an Order. 

