{
  "url": "https://openlegislation.uk/social-security-earnings-factor-amendment-no-2-regulations-1987/note",
  "json_url": "https://openlegislation.uk/social-security-earnings-factor-amendment-no-2-regulations-1987/note.json",
  "legislation": "uksi/1987/411",
  "legislation_title": "The Social Security (Earnings Factor) Amendment (No. 2) Regulations 1987",
  "legislation_url": "https://openlegislation.uk/social-security-earnings-factor-amendment-no-2-regulations-1987",
  "path": "note",
  "kind": "note",
  "number": null,
  "heading": "Explanatory note",
  "text": "(This note is not part of the Regulations)\nThese Regulations are all consequential on sections 42 and 75 of and Schedule 8 to the Social Security Act 1986, and are made before the expiry of the period of twelve months beginning with their commencement. Consequently, by virtue of section 61(5) of that Act, the provisions of section 10(1) of the Social Security Act 1980 (c. 30) (which require reference to the Social Security Advisory Committee) and section 61(2) and (3) of the Social Security Pensions Act 1975 (which require reference to the Occupational Pensions Board of, and a report by the Board on, proposals to make regulations for certain purposes of that Act) do not apply to them.\nThe Regulations amend the Social Security (Earnings Factor) Regulations 1979 (“the principal regulations”). The amendments are contained in regulation 2 and apply in respect of the tax year 1987/8 and subsequent years. Regulation 2 of the principal regulations is substituted to provide that earnings factors derived from a person’s earnings or Class 2 or Class 3 contributions shall be ascertained in accordance with Schedule 1.\nIn Schedule 1, paragraphs 1(1)(e) and (f), 4 and 5 are omitted and paragraphs 2, 3, 6 and 7 are substituted. Paragraph 2 as substituted provides that a person’s earnings factor derived from specified earnings shall be equal to the amount of those earnings; paragraph 7(1) as substituted provides that the earnings factor shall be ascertained in the same way in respect of specified earnings in contracted-out employment. In both cases, the earnings factor is to be rounded down to the nearest pound.\nParagraph 3 as substituted provides that the earnings factor derived from specified earnings recorded as separate sums in Department of Health and Social Security records shall be equal to the aggregate of the amounts ascertained by rounding down each sum to the nearest pound. Paragraph 7(3) as substituted provides similarly in relation to specified earnings on which contracted-out contributions have been paid or treated as paid.\nParagraph 6 is substituted to reflect the changes in the method of ascertaining earnings factors, and the other provisions of regulation 2 of these Regulations contain amendments consequential upon those changes.\nRegulation 3 provides for earnings factors in respect of tax years ending before 6th April 1987 to be ascertained without reference to regulation 2.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/1987/411/note",
    "retrieved_at": "2026-10-29T16:30:04.647228+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."
}