Explanatory note

Part 2, paragraphs 4 and 5 of the Schedule to the Parental Bereavement (Leave and Pay) Act 2018 (c. 24) (“the 2018 Act”) inserted a new Part 12ZD into the Social Security Contributions and Benefits Act 1992 (c. 4) (“the 1992 Act”). This created an entitlement to statutory parental bereavement pay. The 2018 Act does not apply or extend to Northern Ireland.

Part 3, paragraph 11 of the Schedule to the 2018 Act amended section 4(1)(a) of the 1992 Act, to provide that sums paid to or for the benefit of a person in connection with an entitlement to statutory parental bereavement pay are treated as remuneration from an employed earner’s employment for National Insurance contributions (“NICs”) purposes.

As a result of the changes to the 1992 Act set out above, payments of statutory parental bereavement pay now fall within the definition of “earnings” for the purposes of National Insurance Credits (“NICs”) as set out in section 3(1)(a) of the 1992 Act.

These Regulations make consequential amendments to the Social Security (Contributions) Regulations 2001 (S.I. 2001/1004), to insert references to statutory parental bereavement pay into various provisions governing the collection and recovery of earnings-related NICs.

A Tax Information and Impact Note has not been prepared for these Regulations as they are part of a package of legislative measures and the relevant impact assessment is the “Parental Bereavement (Leave and Pay) Bill impact assessment” which was published on 14th May 2018. An addendum to the impact assessment was also published on 24th May 2018. Copies of these two documents are available at: https://publications.parliament.uk/pa/bills/lbill/2017-2019/0105/Impact%20Assessment%20-%20Parental%20Bereavement%20-%20amended%20200113.pdf and https://publications.parliament.uk/pa/bills/lbill/2017-2019/0105/18105-impact-assessment-addendum.pdf respectively. Paper copies of both impact assessments can also be obtained from the Department for Business, Energy and Industrial Strategy, 1 Victoria Street, Westminster, London SW1H 0ET, and copies have also been placed in the libraries of both Houses of Parliament.