The Social Security (Contributions) (Re-rating and National Insurance Funds Payments) Order 2014

This Order is made by the Treasury in exercise of the powers conferred by sections 141(4) and (5) and 142(2) and (3) of the Social Security Administration Act 1992 (“the Administration Act”)1, section 129 of the Social Security Administration (Northern Ireland) Act 1992 (“the Northern Ireland Administration Act”)2, section 2(2) and (3) of the Social Security Act 1993 (“the 1993 Act”)3 and article 4 of the Social Security (Northern Ireland) Order 1993 (“the 1993 Order”)4.

This Order is made as a result of the Treasury carrying out in the tax year 2013-14 a review of the general level of earnings in Great Britain in accordance with section 141(1) and (2) of the Administration Act5.

The Treasury have determined that an Order should be made under section 141 of the Administration Act, amending Part 1 of the Social Security Contributions and Benefits Act 19926 by altering the rates of Class 2 and Class 3 contributions, the amount of earnings below which an earner may be excepted from liability for Class 2 contributions and the lower and upper limits of profits to be taken into account for Class 4 contributions.

This Order makes provision for Northern Ireland, which corresponds to that mentioned in relation to Great Britain in the preceding recital, in accordance with section 129 of the Northern Ireland Administration Act.

With a view to adjusting the level at which the National Insurance Fund stands for the time being, and having regard to estimated benefit expenditure for the financial year ending with 31^st March 2015, the Treasury think it expedient that an Order should be made under section 2(2) of the 1993 Act.

With a view to adjusting the level at which the Northern Ireland National Insurance Fund stands for the time being, and having regard to estimated benefit expenditure for the financial year ending 31^st March 2015, the Treasury think it expedient that an Order should be made under article 4(3) of the 1993 Order.