# The Social Security (Contributions) (Re-rating) Order 2012, Note: Explanatory note


(This note is not part of the Order)
This Order, which comes into force on 6th April 2012, 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 £2.50 to £2.65 and from £12.60 to £13.25. 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 £5,315 to £5,595 (Articles 2 and 3).
The Order increases from £7,225 to £7,605 the lower limit of profits specified in sections 15 and 18, above 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 described 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 section 142(1) of the Social Security Administration Act 1992, 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 http://www.gad.gov.uk/Publications/index.html.
A Tax Information and Impact Note covering this instrument was published on 23 March 2011 alongside Budget 2011. This has been updated as a result of changes to the impacts as a result of this instrument and is available on the HMRC website at http://www.hmrc.gov.uk/thelibrary/tiins.htm.

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Source: https://www.legislation.gov.uk/ukdsi/2012/9780111519646/note (the official version)
Page: https://openlegislation.uk/draft-social-security-contributions-re-rating-order-2012/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.