(This note is not part of the Order)
This Order increases the rates of Class 2 and Class 3 contributions specified in sections 11(1) and 13(1) of the Social Security Contributions and Benefits Act 1992 ( “the Act”) from £2.30 to £2.40 and from £8.10 to £12.05. It also increases the amount of earnings specified in section 11(4) of the Act, below which an earner may be excepted from liability for Class 2 contributions from £4,825 to £5,075 (Articles 2 and 3).
The Order also increases, from £5,435 to £5,715 and from £40,040 to £43,875 respectively, the lower and upper limits of profits specified in sections 15 and 18, between which Class 4 contributions are payable at the main Class 4 percentage rate (Article 4).
Articles 2 to 4 of the Order also make provision for Northern Ireland corresponding to that in the preceding two paragraphs (the section numbers of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 are the same as those in the Act).
In accordance with sections 142(1) of the Social Security Administration Act 1992, a copy of the report by the Government Actuary (Cm. 7537), giving his opinion on the likely effect on the National Insurance Fund of the making of the Order, insofar as it amends sections 11(1), 11(4), 13(1), 15(3), 18(1) and 18(1A) of the Act, was laid before Parliament with the draft of this Order.
A full impact assessment has not been produced for this instrument as no impact on the private or voluntary sectors is foreseen.
Welfare, Housing & Social Security Law94
Class 2 Contributions: Self-employed Earners99
Employment & Labour Law99
Class 3 Contributions: Voluntary99
Class 4 Contributions: on Profits of a Trade99
National Insurance Contributions99