2023 No. 236
The Social Security (Contributions) (Rates, Limits and Thresholds Amendments and National Insurance Funds Payments) Regulations 2023
Made
Coming into force
These Regulations are made by the Treasury, in exercise of the powers conferred by sections 5(1) and (4) to (6), 9A(7) and (8), 9B(4) and (5) and 175(3) of the Social Security Contributions and Benefits Act 19921 (“the Contributions Act”), sections 5(1) and (4) to (6), 9A(7) and (8), 9B(4) and (5) and 171(3) and (10) of the Social Security Contributions and Benefits (Northern Ireland) Act 19922 (“the Northern Ireland Contributions Act”), sections 141(4) and 142(2) and (3) of the Social Security Administration Act 19923 (“the Administration Act”), section 129 of the Social Security Administration (Northern Ireland) Act 19924 (“the Northern Ireland Administration Act”), section 2(2) and (3) of the Social Security Act 19935 (“the 1993 Act”), article 4(3) and (4) of the Social Security (Northern Ireland) Order 19936 (“the 1993 Order”) and section 8(4) to (8) of the National Insurance Contributions Act 20227 (“the NICA 2022”).
Regulations 3 and 4 are made as a result of the Treasury carrying out in the tax year 2022-23 a review of the general level of earnings in Great Britain in accordance with section 141(1) and (2) of the Administration Act8.
The Treasury have determined that, in relation to Great Britain, regulations 3 and 4 should be made under section 141 of the Administration Act to amend Part 1 of the Contributions Act by altering the rate of, and the lower profits threshold for, Class 2 contributions and the amount of a Class 3 contribution.
Regulations 3 and 4 make 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 31st March 2024, the Treasury think it expedient that regulation 7 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 with 31st March 2024, the Treasury think it expedient that regulation 8 should be made under article 4(3) of the 1993 Order.
A draft of these Regulations was laid before Parliament in accordance with the provisions of section 176(1)(za), (zb) and (a) of the Contributions Act9, section 172(11ZA), (11ZB) and (11A) of the Northern Ireland Contributions Act10, sections 141(3) and 190(1)(a) of the Administration Act11, section 166(10A) of the Northern Ireland Administration Act12, section 2(8) of the 1993 Act, article 4(8) of the 1993 Order13 and section 12(2) of the NICA 2022 and approved by a resolution of each House of Parliament.
PART 1General
Citation and commencement1
These Regulations may be cited as the Social Security (Contributions) (Rates, Limits and Thresholds Amendments and National Insurance Funds Payments) Regulations 2023 and come into force on 6th April 2023.
PART 2Rates, limits and thresholds for National Insurance contributions
Interpretation2
In this Part—
“the Act” means the Social Security Contributions and Benefits Act 1992; and
“the Northern Ireland Act” means the Social Security Contributions and Benefits (Northern Ireland) Act 1992.
Rate of and lower profits threshold for Class 2 contributions3
a
in subsections (2) and (6) for “£3.15” substitute “£3.45”
; and
b
in subsection (4)(a) (lower profits threshold) for “£11,908” substitute “£12,570”
.
Amount of a Class 3 contribution4
Amendment to the Social Security (Contributions) Regulations 20015
In regulation 10 of the Social Security (Contributions) Regulations 200118 (earnings limits and thresholds) in the introductory words for “2022” substitute “2023”
.
Amendments to the National Insurance Contributions Act 20226
In section 8 of the National Insurance Contributions Act 2022 (upper secondary threshold for earnings: freeport tax site employees and armed forces veterans)—
a
in subsection (1) for “year beginning with 6 April 2022” substitute “years beginning with 6 April 2022 and 6 April 2023”
; and
b
in subsection (2) for “and 6 April 2022” substitute “, 6 April 2022 and 6 April 2023”
.
PART 3National Insurance Funds
Prescribed percentage of estimated benefit expenditure – Great Britain7
Section 2(2) of the Social Security Act 1993 (payments into National Insurance Fund out of money provided by Parliament) has effect with respect to the tax year 2023-24 and the prescribed percentage of estimated benefit expenditure for the financial year ending with 31stMarch in that tax year shall be 5 per cent.
Prescribed percentage of estimated benefit expenditure – Northern Ireland8
Article 4(3) of the Social Security (Northern Ireland) Order 1993 (payments into Northern Ireland National Insurance Fund out of appropriated money) has effect with respect to the tax year 2023-24 and the prescribed percentage of estimated benefit expenditure for the financial year ending with 31st March in that tax year shall be 5 per cent.
(This note is not part of the Regulations)