(1)In each tax year the Secretary of State shall carry out a review of the general level of earnings in Great Britain taking into account changes in that level which have taken place since his last review under this section, with a view to determining whether, in respect of Class 2, 3 or 4 contributions, an order should be made under this section, to have effect in relation to the next following tax year.
(2)For the purposes of any review under this section, the Secretary of State—
(a)shall estimate the general level of earnings in such manner as he thinks fit; and
(b)shall take into account any other matters appearing to him to be relevant to his determination whether or not an order should be made under this section, including the current operation of the Contributions and Benefits Act.
(3)If the Secretary of State determines, as a result of a review under this section, that having regard to changes in the general level of earnings which have taken place, and to any other matters taken into account on the review, an order under this section should be made for the amendment of Part I of the Contributions and Benefits Act, he shall prepare and lay before each House of Parliament a draft of such an order framed so as to give effect to his conclusions on the review.
(4)An order under this section may amend Part I of the Contributions and Benefits Act by altering any one or more of the following figures—
(a)the figure specified in section 11(1) as the weekly rate of Class 2 contributions;
(b)the figure specified in section 11(4) as the amount of earnings below which regulations under that subsection may except an earner from liability for Class 2 contributions;
(c)the figure specified in section 13(1) as the amount of a Class 3 contribution;
(d)the figures specified in section 15(3) as the lower and upper limits of profits or gains which are to be taken into account for the purposes of Class 4 contributions.
(5)If an order under this section contains an amendment altering either of the figures specified in section 15(3) of the Contributions and Benefits Act, it shall make the same alteration of the corresponding figure specified in section 18(1) of that Act.
(6)If the Secretary of State determines as a result of a review under this section that, having regard to his conclusions in respect of the general level of earnings and otherwise, no such amendments of Part I of the Contributions and Benefits Act are called for as can be made for the purposes of subsection (4) above, and determines accordingly not to lay a draft of an order before Parliament, he shall instead prepare and lay before each House of Parliament a report explaining his reasons for that determination.
(7)In subsection (1) above in its application to the tax year 1992-93 the reference to the last review under this section shall be construed as a reference to the last review under section 120 of the 1975 Act.