Explanatory note

This Order, which comes into force on 6th April 2015, amends sections 13, 15 and 18 of the Social Security Contributions and Benefits Act 1992 (c. 4) and makes corresponding amendments to the same-numbered sections in the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7). In this note “the Acts” is a reference to both Acts.

Article 2 increases the rate of Class 3 voluntary contributions, specified in section 13(1) of the Acts, from £13.90 to £14.10.

Article 3 increases the lower and upper limits of profits, specified in sections 15 and 18 of the Acts, between which Class 4 contributions are payable at the main Class 4 percentage rate. The lower limit increases from £7,956 to £8,060 and the upper limit from £41,865 to £42,385.

Article 4 provides for section 2(2) of the Social Security Act 1993 (c. 3) to have effect for the tax year 2015-16. This allows money provided by Parliament to be paid into the National Insurance Fund up to a limit of 10 per cent of the estimated benefit expenditure for the financial year ending with 31st March 2016. Article 5 of the Order makes corresponding provision for Northern Ireland, by giving effect to article 4(3) of the Social Security (Northern Ireland) Order 1993 (S.I. 1993/592 (N.I. 2)).

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, 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.