Explanatory note

This Order increases from £4,025 to £4,095 the amount of earnings below which an earner may be excepted from liability for Class 2 contributions, specified in section 11(4) of the Social Security Contributions and Benefits Act 1992 (c. 4: “the Act”) (Article 2). It also amends the amount of a Class 3 contribution specified in section 13(1) of the Act from £6.85 to £6.95 (article 3).

Articles 2 and 3 of the Order also make provision for Northern Ireland corresponding to that in the preceding paragraph (the section numbers of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7) are the same as those in the Act).

The Order provides for section 2(2) of the Social Security Act 1993 (c. 3) to have effect for the tax year 2003-04. It also provides that the amount of any money that may be provided by Parliament to be paid into the National Insurance Fund in that year shall not exceed in aggregate 2 per cent. of the estimated benefit expenditure for the financial year ending 31st March (Article 4). The Order also makes corresponding provision for Northern Ireland (Article 4(3) of the Social Security (Northern Ireland) Order 1993 (S.I. 1993/592 (N.I. 2)) being the provision brought into effect (article 5)).

In accordance with sections 142(1) and 144(1) of the Social Security Administration Act 1992 (c. 5), a copy of the report of the Government Actuary (Cm ), giving his opinion of the likely effect upon the National Insurance Fund of the making of the Order, insofar as it amends sections 11(4) and 13(1) of the Act, was laid before Parliament with the draft of this Order.

This Order does not impose any new costs on business.