Explanatory note

These Regulations further amend the Social Security (Contributions) Regulations 1979 (“the principal Regulations”).

Regulation 2 amends regulation 7 of the principal Regulations by increasing the weekly lower and upper earnings limits for Class 1 contributions for the tax year beginning on 6th April 1990. The lower earnings limit is increased from £43 to £46 and the upper earnings limit from £325 to £350.

Regulation 2 also amends regulations 115 and 123D of the principal Regulations.

The amendment to regulation 115 increases the abatement of the percentage rates of Class 1 contributions payable by serving members of the forces. The increase is from 0.65 per cent. to 0.7 per cent.

The amendment to regulation 123D decreases the weekly rate of any Class 2 contributions payable by volunteer development workers from 10 per cent. to 7 per cent. of the lower earnings limit. For the year beginning 6th April 1990 the weekly rate of Class 2 contributions for volunteer development workers will be £3.22 instead of £4.30.

Regulation 2(2) of these Regulations is made under section 1 of the Social Security Pensions Act 1975 and the proposals for it are exempt from reference to the Social Security Advisory Committee by virtue of section 10(2) of, and paragraph 13(1) of Schedule 3 to, the Social Security Act 1980.