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Social Security Contributions (Transfer of Functions, etc.) Act 1999

Schedule 3

Social Security Contributions and Benefits Act 1992 (CBA)

69.Paragraph 1 transfers to the Treasury powers in section 1 to make regulations relating to the basic structure of the contributions regime, the rates of different categories of contributions and who is liable to pay them.

70.Paragraphs 2 and 3 transfer powers concerning earners and earnings. These are to be exercised in concurrence with the Secretary of State since there are implications for the contributory benefits system.

71.Paragraphs 4 to 15 transfer to the Treasury powers in sections 6 to 14 CBA to make regulations concerning liability and calculation of different categories of contributions.

72.Paragraph 16 requires the Inland Revenue rather than the Secretary of State to pay Class 4 contributions and related interest into the Northern Ireland NIF.

73.Paragraphs 17 and 18 remove DSS involvement in regulating incidental matters concerning Class 4 contributions, which is collected together with Schedule D tax.

74.Paragraph 19 confirms that regulations concerning the contributions regime fall to the Treasury, whilst regulations concerning earnings factors, which are benefit- related, are retained by the Secretary of State.

75.Paragraph 20 transfers a power to make regulations, inserted by section 54 SSA, allowing wrongly paid contributions to count for benefit purposes.

76.Paragraph 21 amends the power to make regulations about what sums are to be treated as earnings so that it shall be exercised by the Treasury in concurrence with the Secretary of State. This takes account of potential implications for benefits.

77.Paragraphs 22 to 28 transfer regulation-making powers in regard to special classes of contributors, such as servicemen. Because of potential effects on benefit entitlements they are all to be exercised by the Treasury in concurrence with the Secretary of State.

78.Paragraphs 29 and 30 amend sections 175 and 176 (which cover regulation-making procedures) to include provisions where the Treasury or Inland Revenue have powers to make regulations.

79.Paragraphs 31 to 35 transfer to the Inland Revenue powers in Schedule 1 paragraphs 1 to 6 CBA to make regulations about the detail of payment methods etc.

80.Paragraph 36 retains the apportionment between tax and contributions of any penalties collected under powers in Schedule 1 paragraph 7 CBA.

81.Paragraphs 37 and 38 transfer to the Treasury the powers to set rates of penalties under paragraphs 7A and 7B of Schedule 1 CBA.

82.Paragraph 39 transfers most of the list of regulation-making powers in Schedule 1, paragraph 8 to the Treasury. The power conferred by paragraph 8(1)(d) which concerns entitlement to benefits stays with the Secretary of State.

83.Paragraphs 40 and 41 transfer regulation-making powers in paragraphs 9 and 11 of Schedule 1 to the Treasury.

Social Security Administration Act 1992 (SSAA)

84.Paragraphs 42 and 43 provide that powers in sections 14 and 15 relating to SSP and SMP are to be exercised by the Secretary of State in concurrence with the Inland Revenue.

85.Paragraphs 44 to 50 amend references in sections 141 to 147 SSAA 1992 which relate to periodic review of, and reports to Parliament on, the balance in the NIF. All such responsibilities are transferred from the Secretary of State to the Treasury.

86.Paragraphs 51 and 52 transfer functions relating to the administration of the NIF from the Secretary of State to the Inland Revenue.

87.Paragraph 53 provides that the NIF shall meet the administrative costs of statistical enquiries whether they are commissioned by the Inland Revenue or the Secretary of State.

88.Paragraph 54’s amendments of section 165 should be read together with the amendments in paragraph 30 of Schedule 1 to the Act. Both the Inland Revenue and the Secretary of State have roles in making adjustments between the NIF and the Consolidated Fund which reflect their respective responsibilities post-transfer.

89.Paragraph 55 amends section 166 because the Treasury will take over responsibility for receiving the report of the Government Actuary on the state of the NIF.

90.Paragraph 56 amends section 177 to ensure that the Joint Authority, (consisting of the Secretary of State for Social Security and the Department of Health and Social Services for Northern Ireland), which co‑ordinates the social security system across the United Kingdom, will continue to be able to make adjustments between the Great Britain and Northern Ireland NIFs once those Funds have been transferred to the control and management of the Inland Revenue.

91.Paragraphs 57 and 58 amend sections 189 and 190 (about regulation-making procedures) to include regulations made by the Treasury or the Inland Revenue.

92.Paragraph 59 amends Schedule 7 so that regulations making provision consequential on regulations under section 5 CBA (earnings limits) fall outside the remit of the Social Security Advisory Committee.

Social Security Act 1993

93.Paragraph 60 amends section 2 to transfer to the Treasury functions relating to payments into the NIF.

Jobseekers Act 1995

94.Paragraphs 61 to 64 transfer functions relating to the employers’ National Insurance “contributions holiday” from the Secretary of State to the Treasury and Inland Revenue as appropriate.

Northern Ireland Act 1998

95.Paragraph 65 amends section 88 of the Northern Ireland Act 1998 so that the new Joint Authority, which will co-ordinate the social security system across the UK and which will include also the Chancellor of the Exchequer, will be able to make adjustments between the Great Britain and Northern Ireland NIFs once those Funds are under the control and management of the Inland Revenue. (See also paragraph 90 above.)

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