Social Security Act 1975

134 Destination of contributions and Treasury supplements

(1) Contributions received by the Secretary of State under Part I of this Act shall be paid by him into the National Insurance Fund after deducting—

(a) from contributions of any class, the appropriate national health service allocation in the case of contributions of that class ; and

(b) from secondary Class 1 contributions, the appropriate allocation to the Redundancy Fund.

(2) The contributions referred to in subsection (1) above include those paid over to the Secretary of State by the Inland Revenue under section 9(4) of this Act and Schedule 1, paragraph 5(3); but subsection (1) is subject to section 9(6) as respects contributions from Northern Ireland.

(3) The Treasury supplements shall be paid, in accordance with any directions given by the Treasury, into the National Insurance Fund.

(4) In subsection (1) above, " the appropriate national health service allocation " means—

(a) in the case of primary Class 1 contributions, 0-4 per cent. of the amount determined to be that of the earnings in respect of which those contributions were paid;

(b) in the case of secondary Class 1 contributions, 0-6 per cent, of the amount determined to be that of the earnings in respect of which those contributions were paid;

(c) in the case of Class 2 contributions, 8 per cent. of the amount determined to be the total of those contributions ;

(d) in the case of Class 3 contributions, 8 per cent. of the amount determined to be the total of those contributions ; and

(e) in the case of Class 4 contributions, 0-6 per cent. of the amount determined to be that of the earnings in respect of which those contributions were paid ;

and " the appropriate allocation to the Redundancy Fund ", in the case of secondary Class 1 contributions, means 0-2 per cent. of the amount determined to be that of the earnings in respect of which those contributions were paid; and in this subsection " determined " means determined by the Secretary of State in accordance with any directions given by the Treasury.

(5) So much of any contributions as is to be deducted under subsection (1) above before payment of the remainder into the National Insurance Fund shall be dealt with as follows—

(a) from the national health service allocation in respect of contributions of any class there shall be deducted such amount as the Secretary of State may estimate to be the portion of the total expenses incurred by him or any other government department in collecting contributions of that class which is fairly attributable to that allocation, and the remainder shall, in the hands of the Secretary of State, be taken as paid towards the cost—

(i) of the national health service in England ;

(ii) of that service in Wales, and

(iii) of that service in Scotland,

in such shares as the Treasury may determine ;

(b) from the appropriate allocation to the Redundancy Fund there shall be deducted such amount as the Secretary of State may estimate to be the portion of the total expenses incurred by him or any other government department in collecting secondary Class 1 contributions which is fairly attributable to that allocation, and the remainder shall be paid by the Secretary of State into that Fund ; and

(c) any amounts deducted in accordance with paragraphs (a) and (b) above shall be paid by the Secretary of State into the Consolidated Fund ;

and any estimate by the Secretary of State for the purposes of those paragraphs shall be made in accordance with any directions given by the Treasury.

(6) The Secretary of State may make regulations modifying this section, in such manner as he thinks proper, in relation to the contributions of persons referred to in—

• section 128(2) (H.M. forces);

• section 129(1) (mariners, airmen, etc.), and

• section 132(1) (continental shelf workers).