Explanatory note

This Order increases the amounts of weekly earnings specified in the earnings brackets in section 4(6B) and (6E) of the Social Security Act 1975, determining the appropriate percentage rate at which Class 1 contributions are payable under that Act (article 2). It increases the rates of Class 2 and Class 3 contributions payable under that Act (articles 3(a) and 4). It increases the amount of earnings below which an earner may be excepted from liability for Class 2 contributions (article 3(b)), and the lower and upper limits of profits or gains between which Class 4 contributions are payable (article 5).

In accordance with sections 121(1) and 123A(6A) of the Social Security Act 1975, a copy of the report by the Government Actuary (Cmnd. 24), giving his opinion on the likely effect on the National Insurance Fund of the making of the Order was laid before Parliament with a draft of it.