31.12.2 NWE not relevant to pre-88 incapacity periods

Incapacity payments under the 1971 Act and the 1930 Act did not utilise the NWE concept as a basis for payment. Weekly compensation for incapacity to work was – during the currency of these Acts – made on the basis of published statutory rates, (including additional specified amounts in respect of dependants), varied annually.

The 1971 Act did indeed incorporate a concept termed 'Average Weekly Earnings' (i.e. AWE) at S25 of that Act. However, the purpose of AWE is as a maximum level, i.e. payment at the statutory rates was not to exceed the AWE.

Delegates may occasionally need to make a back-payment in respect of a period of incapacity that occurred during the currency of an old Act.

Subsection 124(7) of the SRCA requires such pre-88 periods to be paid at the rates current when the incapacity occurred i.e. as if the old Act had not been repealed.

In these cases of pre-88 incapacity, therefore, no attempt need be made to establish an NWE but the entitlement should be paid by the system set out at 30.4 of this handbook.