CP_17_1991
Bramhill v. Chief Adjudication Officer [1994] UKSSCSC CP_17_1991 (07 July 1994)
R(P) 2/96
Mr. A. W. E. Wheeler CBE CP/17/1991
15.1.93
Discrimination on grounds of sex - increase of retirement pension for dependent husband - whether discrimination contrary to Council Directive 79/7 EEC
The claimant reached the age of 60 on 30 June 1990 and claimed retirement pension from that date, including an increase in respect of her husband. She had not been in receipt of an increase in unemployment benefit, sickness benefit or invalidity benefit for him immediately before the date on which she became entitled to retirement pension. The adjudication officer disallowed her claim for an increase in respect of her husband on the ground that she did not satisfy the requirement in s. 45A(1) of the Social Security Act 1975. The claimant appealed to a social security appeal tribunal. It was common ground that s. 45A of the 1975 Act discriminated against women as a married woman seeking an increase in respect of her dependent husband had to fulfil additional conditions over and above the condition that a married man seeking an increase in respect of his dependent wife had to fulfil under s. 45 of the Act. But in view of the decision of the Commissioner in R(P) 3/88 that this inequality of treatment did not breach Council Directive 79/7/EEC, the tribunal disallowed the appeal. The Commissioner, to whom the claimant then appealed, referred the case to the European Court of Justice.
The Court held that:
the discrimination at issue fell within the derogation provided for in Article 7(1)(d) of the Directive. Where a Member State had previously provided for increases in old age benefits in respect of a dependent spouse to be payable only to men, it could still rely on the derogation permitted by Article 7(1)(d) if it subsequently introduced measures which had the effect of reducing (although not abolishing) the unequal treatment. To hold otherwise would be incompatible with the purpose of the directive which was concerned with the progressive implementation of the principle of equal treatment.
In the light of the answer given by the European Court of Justice, the Commissioner dismissed the claimant's appeal. R(P) 3/88 confirmed.
DECISION OF THE SOCIAL SECURITY COMMISSIONER
- that her retirement pension began immediately upon termination of the period for which she was entitled to an increase of unemployment, sickness or invalidity benefit for her husband; and
- that she is residing with her husband or she is contributing to his maintenance at a rate not less than the amount of the increase she would be entitled to receive ...
"45 (1) This section applies to-
(a) a Category A or Category C retirement pension
(b) an invalidity pension.
(2) Subject to the following provisions, the weekly rate of a pension to which this section applies, when payable to a man, shall be increased by the amount respectively specified in relation to the relevant pension in Schedule 4, Part IV, column (3)-
(a) for any period during which the pensioner is residing with his wife; or
(b) for any period during which the pensioner is contributing to the maintenance of his wife at a weekly rate not less than that amount, and his wife does not have weekly earnings which exceed that amount.
(2A) Regulations may provide that, for any period during which the pensioner is residing with his wife and his wife ... has earnings-
(a) the increase of benefit under this section shall be subject to a reduction in respect of the wife's earnings; or
(b) there shall be no increase of benefit under this section.
(3)-(4) ...
45A. (1) Where a Category A retirement pension is payable to a woman for any period-
(a) which began immediately upon the termination of a period for which the pensioner was entitled to an increase in unemployment benefit, sickness benefit or invalidity pension by virtue of section 44(3)(a) or 47(1)(a) of this Act (increases in respect of adult dependants); and
(b) during which the requirements of either paragraph (a) or (b) of subsection (2) below are satisfied (without interruption),
then the weekly rate of the pensioner's Category A retirement pension shall be increased by the amount specified in relation thereto in Schedule 4, Part IV, column 3 ("the specified amount").
(2) The requirements referred to in subsection (1)(b) above are-
(a) that the pensioner is residing with her husband;
(b) that the pension is contributing to the maintenance of her husband at a weekly rate not less than the specified amount, and her husband does not have weekly earnings which exceed that amount.
(3) Regulations may provide that, for any period during which the pensioner is residing with her husband and her husband ... has earnings-
(a) the increase of benefit under this section shall be subject to a reduction in respect of the husband's earnings; or
(b) there shall be no increase of benefit under this section."
"Article 1
The purpose of this Directive is the progressive implementation, in the field of social security and other elements of social protection provided for in Article 3, of the principle of equal treatment for men and women in matters of social security, hereinafter referred to as "the principle of equal treatment".
Article 4
- The principle of equal treatment means that there shall be no discrimination whatsoever on grounds of sex either directly, or indirectly by reference in particular to marital or family status, in particular as concerns:
- the scope of the schemes and the conditions of access thereto,
- the obligation to contribute and the calculation of contributions,
- the calculation of benefits including increases due in respect of a spouse and for dependants and the conditions governing the duration and retention of entitlement to benefits.
2 . The principle of equal treatment shall be without prejudice to ensure that any laws, regulations and administrative provisions contrary to the principle of equal treatment are abolished.
Article 7
- This Directive shall be without prejudice to the right of Member States to exclude from its scope:
(a) the determination of pensionable age for the purposes of granting old-age and retirement pensions and the possible consequences thereof for other benefits;
(b) advantages in respect of old-age pension schemes granted to persons who have brought up children; the acquisition of benefit entitlements following periods of interruption of employment due to the bringing up of children;
(c) the granting of old-age or invalidity benefit entitlements by virtue of the derived entitlements of a wife;
(d) the granting of increases of long-term invalidity, old-age, accidents at work and occupational disease benefits for a dependent wife;
(e) the consequences of the exercise, before the adoption of this Directive, of a right of option not to acquire rights or incur obligations under a statutory scheme.
- Member States shall periodically examine matters excluded under paragraph 1 in order to ascertain, in the light of social developments in the matter concerned, whether there is justification for maintaining the exclusions concerned.
Article 8
- Member States shall bring into force the laws, regulations and administrative provisions necessary to comply with this Directive within six years of its notification. They shall immediately inform the Commission thereof.
- Member States shall communicate to the Commission the text of laws, regulations and administrative provisions which they adopt in the field covered by this Directive, including measures adopted pursuant to Article 7(2).
They shall inform the Commission of their reasons for maintaining any existing provisions on the matters referred to in Article 7(1) and of the possibilities for reviewing them at a later date."
"9. It is contended on behalf of the claimant that section 45A is discriminatory against women and places them in a less favourable position to men in the matter of increases of retirement pension for spouses. Clearly such contention is correct. In order to obtain an addition for a husband a married woman has to satisfy similar conditions to those specified in section 45 for a married man, seeking an increase for his wife, in addition she has to get over another hurdle, the condition provided for in section 45A(1). It is further maintained on behalf of the claimant that this discrimination is inconsistent with the Directive and in breach of it. If this is so, then she may rely on the Directive to obtain entitlement to benefit. But is it so? Article 4 of the Directive provides that the principle of equal treatment means that there should be no discrimination whatsoever on grounds of sex, either directly or indirectly, by reference in particular to marital or family status, in particular as concerns the scope of schemes and "the conditions of access thereto and the calculation of benefits, including increases due in respect of a spouse and for dependants, and the conditions governing the duration and retention of entitlement to benefits." Clearly if States were not allowed to derogate from that Article section 45A would be inconsistent with the requirements of the Directive. But Member States are permitted to derogate from this general obligation to the extent provided for by Article 7. Article 7(1)(d) allows inter alia the difference between the treatment of men and women in the matter of old age benefit in that the law of a Member State may provide for a husband to be awarded an increase for a wife in circumstances where a wife would not be awarded a comparable increase for a husband. In my judgment the Directive itself provides for a derogation from the principle of equal treatment laid down in Article 4(1) to that extent, and the inequality of treatment illustrated by section 45 and section 45A of the Social Security Act 1975 does not breach the Directive."
"The calculation of benefits including increases due in respect of a spouse and for dependants and for conditions governing the duration and retention of entitlement to benefits." (Article 4(1))
The Article 7(1)(d) derogation does not speak of excluding from the scope of the Directive the granting of benefit increases for a dependant spouse or for a dependant husband. It speaks only of permitting the exclusion of benefit increases for a dependent wife and, it was contended, that construed narrowly in the context of Directive 79/7 as a whole and in accordance with the principle of proportionality, it cannot be read as permitting Member States to exclude from the Directive's scope the granting of pension increases payable to a wife for a dependant husband on terms which are more onerous than apply to pension increases payable to a husband for a dependant wife. Consequently, it was submitted, section 45A of the 1975 Act goes beyond the limits of the derogation permitted by Directive 79/7 and to that extent is inconsistent with it.
- The starting point for construing Directive 79/7 is that it aims at the progressive implementation of the principle of equal treatment for men and women in matters of social security, which is a more limited purpose than the sweeping equality of treatment envisaged by Directive 76/207. Thus, the case law on the interpretation of the latter Directive, such as Case 222/84, Johnston v. RUC [1986] ECR 1651 do not assist in the present case;
- Guidance on the construction of the Article 7 derogation is provided by the judgment, dated 22 July 1992, on Article 7(1)(a) Case C-9/91, Ex parte Equal Opportunities Commission at paragraphs 14 to 18. The Court there stressed that derogations, in order not to be nugatory, may need to be interpreted in a way that is slightly wider than the express wording;
- If the claimant's interpretation were right, then Article 7(1)(d) would become meaningless and would cease to be a derogation;
- The United Kingdom could, in full compliance with the Directive, revoke the Article 7(1)(d) derogation and the claimant could not object because the greater power to terminate the derogation must include the lesser power to make separate and different provision in respect of a dependent wife and a dependant husband.
- Where a Member State has enacted separate provisions for a male pensioner claiming in respect of a dependent wife and for a female pensioner claiming in respect of a dependent husband, is the derogation contained in Article 7(1)(d) of Directive 79/7 to be interpreted as permitting the Member State to impose more stringent conditions on a female claimant than on a male claimant?
- In particular, may the Member State impose a condition such as that contained in s. 45A of the Social Security Act 1975, by which immediately prior to the date upon which the female pensioner became entitled to retirement pension, she must have been entitled to retirement pension, she must have been entitled to an increase of unemployment benefit, sickness benefit or invalidity pension for such husband, when no such requirement is imposed on a man seeking an increase of retirement pension for a dependent wife?
- If, in the light of the answers to questions 1 and 2, it is necessary for the national judge to determine whether or not national legislation satisfies the requirements of proportionality under Community law, so as to be capable of benefiting from the derogation contained in Article 7(1)(d) of Directive 79/7, what are the specific criteria that the national judge must apply?
"Article 7(1)(d) of Council Directive 79/7/EEC of 19 December 1978 on the progressive implementation of the principle of equal treatment for men and women in matters of social security does not preclude a Member State which provided for increases in non-term old age benefits in respect of a dependent spouse to be granted only to men from abolishing that discrimination solely with regard to women who fulfil certain conditions."
"19. As the United Kingdom has correctly pointed out, rules such as those in force in the United Kingdom before the legislative amendment made by the Health and Social Security Act 1984, which allowed certain categories of married women to receive the increases in question, incontestably fell within that derogation since at that time increases in retirement pension were provided for only in respect of a "dependent wife".
- As its title indicates and Article 1 explains, the purpose of the directive is the progressive implementation of the principle of equal treatment for men and women in matters of social security (see, in particular, the judgment of 24 February 1994 in Case C-343/92 Roks and Others, not yet published in the ECR, and the judgment in Case C-9/91 Equal Opportunities Commission [1992] ECR I-4297).
- To interpret the directive in the way contended for by [the claimant], which would mean that in the case of benefits which a Member State has excluded from the scope of the directive pursuant to Article 7(1)(d) it could no longer rely on the derogation provided for by that provision if it adopted a measure which, like that in question in the main proceedings, has the effect of reducing the extent of unequal treatment based on sex, would therefore be incompatible with the purpose of the directive and would be likely to jeopardize the implementation of the aforesaid principle of equal treatment.
- It follows that the difference in wording between the third indent of Article 4 (1) and Article 7(1)(d) of the directive cannot be interpreted in the way contended for by [the claimant] and that the discrimination in question therefore falls within the scope of the aforesaid derogation from the directive."
Date: 15 January 1993 (signed) Mr. A. W. E. Wheeler CBE
Commissioner
APPENDIX
JUDGMENT OF THE ECJ
(Directive 79/7/EEC - Increases in old age benefits for dependent spouses)
Judgment
"1. The principle of equal treatment means that there shall be no discrimination whatsoever on ground of sex either directly, or indirectly by reference in particular to marital or family status, in particular as concerns:
...
- the calculation of benefits including increases due in respect of a spouse and for dependants and the conditions governing the duration and retention of entitlement to benefits."
"1. This directive shall be without prejudice to the right of Member States to exclude from its scope:
...
.."(d) the granting of increases of long-term invalidity, old-age, accidents at work and occupational disease benefits for a dependent wife;
"(1) Where a Member State has enacted separate provisions for a male pensioner claiming in respect of a dependent wife and for a female pensioner claiming in respect of a dependent husband, is the derogation contained in Article 7(1)(d) of Directive 79/7 to be interpreted as permitting the Member State to impose more stringent conditions on a female claimant than on a male claimant?
(2) In particular, may the Member State impose a condition such as that contained in s. 45A of the Social Security Act 1975, by which immediately prior to the date upon which the female pensioner became entitled to retirement pension, she must have been entitled to an increase of unemployment benefit, sickness benefit or invalidity pension for such husband, when no such requirement is imposed on a man seeking an increase of retirement pension for a dependent wife?
(3) If, in the light of the answers to questions 1 and 2, it is necessary for the national judge to determine whether or not national legislation satisfies the requirements of proportionality under Community law, so as to be capable of benefiting from the derogation contained in Article 7(1)(d) of Directive 79/7, what are the specific criteria that the national judge must apply?"
Costs
On those grounds,
THE COURT (FIFTH CHAMBER),
in answer to the questions referred to it by the social security Commissioner, by order of 27 November 1992, hereby rules:
Article 7(1)(d) of Council Directive 79/7/EEC of 19 December 1978 on the progressive implementation of the principle of equal treatment for men and women in matters of social security does not preclude a Member State which provided for increases in long-term old age benefits in respect of a dependent spouse to be granted only to men from abolishing that discrimination solely with regard to women who fulfil certain conditions.