# The Social Security (Contributions) (Re-rating and National Insurance Funds Payments) Order 2014, Note: Explanatory note


(This note is not part of the Order)
This Order, which comes into force on 6th April 2014, 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 (c. 4) (“the Act”) from £2.70 to £2.75 and £13.55 to £13.90 respectively (articles 2(a) and 3). 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 £5,725 to £5,885 (article 2(b)).
The Order increases the lower and upper limits of profits specified in sections 15 and 18 of the Act, between which Class 4 contributions are payable at the main Class 4 percentage rate. The lower limit increases from £7,755 to £7,956 and the upper limit from £41,450 to £41,865 (article 4).
Articles 2 to 4 of the Order also make provision for Northern Ireland corresponding to that described in the preceding two paragraphs (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 2014-15. 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 5 per cent. of the estimated benefit expenditure for the financial year ending 31st March 2015 (article 5). 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 6).
In accordance with section 142(1) of the Social Security Administration Act 1992 (c. 5), a copy of the report by the Government Actuary, giving the Actuary’s opinion on the likely effect on the National Insurance Fund of the making of the Order, including the amendments to 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 copy of the report can be found on the Government Actuary’s Department website at https://www.gov.uk/government/collections/uk-social-security-short-term-and-long-term-reports.
A Tax Information and Impact Note has not been prepared for this instrument as it gives effect to previously announced policy and it relates to routine changes to rates, limits and thresholds to a predetermined indexation formula.

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Source: https://www.legislation.gov.uk/ukdsi/2014/9780111108826/note (the official version)
Page: https://openlegislation.uk/draft-social-security-contributions-re-rating-and-national-insurance-funds-payments-order-2014/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.