{
  "url": "https://openlegislation.uk/social-security-contributions-re-rating-and-national-insurance-fund-payments-order-1994/note",
  "json_url": "https://openlegislation.uk/social-security-contributions-re-rating-and-national-insurance-fund-payments-order-1994/note.json",
  "legislation": "uksi/1994/544",
  "legislation_title": "The Social Security (Contributions) (Re-rating and National Insurance Fund Payments) Order 1994",
  "legislation_url": "https://openlegislation.uk/social-security-contributions-re-rating-and-national-insurance-fund-payments-order-1994",
  "path": "note",
  "kind": "note",
  "number": null,
  "heading": "Explanatory note",
  "text": "(This note is not part of the Order)\nThis Order increases the amounts of weekly earnings specified in the secondary earnings brackets in section 9(3) of the Social Security Contributions and Benefits Act 1992 (“the Act”), in respect of Bracket 1 from £94.99 to £99.99, in respect of Bracket 2 from £95 and £139.99 to £100 and £144.99, in respect of Bracket 3 from £140 and £194.99 to £145 and £199.99 and in respect of Bracket 4 from £195 to £200. The percentage rate is reduced, in respect of Bracket 1 from 4.6% to 3.6%, in respect of Bracket 2 from 6.6% to 5.6%, in respect of Bracket 3 from 8.6% to 7.6% and in respect of Bracket 4 from 10.4% to 10.2% (article 2).\nThe Order increases the rates of Class 2 and Class 3 contributions specified in sections 11(1) and 13(1) of the Act from £5.55 to £5.65 and from £5.45 to £5.55 respectively. It also increases from £3,140 to £3,200 the amount of earnings specified in section 11(4) below which an earner may be excepted from liability for Class 2 contributions (articles 3 and 4).\nThe Order increases the percentage rate at which Class 4 contributions are charged from 6.3% to 7.3%. It also increases, from £6,340 to £6,490 and from £21,840 to £22,360 respectively, the lower and upper limits of profits or gains specified in sections 15(3) and 18(1) of the Act between which Class 4 contributions are payable (article 5).\nThe Order provides for section 2(2) of the Social Security Act 1993 to have effect for the tax year 1994-95. It also provides that the amount of money provided by Parliament to be paid into the National Insurance Fund in that year shall not exceed in aggregate 16% of the estimated benefit expenditure for the financial year ending 31st March 1995 (article 6).\nIn accordance with sections 142(1), 144(1) and 147(2) of the Social Security Administration Act 1992, a copy of the report by the Government Actuary (Cm.2445) giving his opinion on the likely effect on the National Insurance Fund of the making of the Order in so far as it amends sections 9(3), 11(1) and (4), 13(1), 15(3) and 18(1) of the Act, was laid before Parliament with a draft of this Order.\nArticles 3(b), 4 and 6 of this Order do not impose any costs on business. The effect of article 2 will be to increase the administrative costs to business. In most cases the effect of articles 3(a) and 5 will be to increase the National Insurance contributions payable by the self-employed.\nAn assessment of the costs to business of applying articles 2, 3(a) and 5 has been placed in the Libraries of both Houses of Parliament. Copies can be obtained by post from the Department of Social Security, Room 09/03, Adelphi, 1-11 John Adam Street, London WC2N 6HT.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/1994/544/note",
    "retrieved_at": "2026-10-29T13:39:30.505902+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}