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

30 (1) Section 165 of the Social Security Administration Act 1992 (adjustments between National Insurance Fund and Consolidated Fund) is amended as follows.

(2) For subsection (1) there is substituted—

“(1) There shall be made out of the National Insurance Fund into the Consolidated Fund, or out of money provided by Parliament into the National Insurance Fund—

(a) such payments by way of adjustment as the Secretary of State determines (in accordance with any directions of the Treasury) to be appropriate in consequence of the operation of any enactment or regulations relating to—

(i) family credit;

(ii) disability working allowance; and

(iii) the repayment or offsetting of benefit as defined in section 122 of the Contributions and Benefits Act or other payments; and

(b) such payments by way of adjustment as the Inland Revenue determine to be appropriate in consequence of the operation of any enactment or regulations relating to—

(i) statutory sick pay; and

(ii) statutory maternity pay.”

(3) In subsection (2), for “by the Secretary of State in accordance with any directions given by the Treasury” there is substituted “by the appropriate authority”.

(4) After subsection (2) there is inserted—

“(2A) In subsection (2) above “the appropriate authority” means—

(a) the Secretary of State, in relation to payments falling to be made by him, or

(b) the Inland Revenue, in relation to payments falling to be made by them;

and any determination by the Secretary of State under that subsection must be made in accordance with any directions given by the Treasury.”

(5) In subsection (3)(a), for “subsection (1)(a) to (d)” there is substituted “subsection (1)(a) and (b)”.

(6) For subsection (5) there is substituted—

“(5) There shall be paid out of the National Insurance Fund into the Consolidated Fund, at such times and in such manner as the Treasury may direct—

(a) such sums as the Inland Revenue may estimate to be the amount of the administrative expenses incurred by them as mentioned in section 163(2)(a) above, excluding any expenses which the Treasury may direct, or any enactment may require, to be excluded from the Inland Revenue’s estimate under this subsection, and

(b) such sums as the Secretary of State may estimate (in accordance with any directions given by the Treasury) to be the amount of the administrative expenses incurred as mentioned in section 163(2)(a) above by any government department other than the Inland Revenue, excluding the expenses specified in subsection (6) below.

(6) The expenses excluded from the estimate under subsection (5)(b) above are—

(a) expenses attributable to the carrying into effect of provisions of the Contributions and Benefits Act or this Act relating to the benefits which by virtue of section 163(2) above are payable out of money provided by Parliament; and

(b) any other category of expenses which the Treasury may direct, or any enactment may require, to be excluded from the Secretary of State’s estimate under subsection (5)(b) above;

but none of the administrative expenses of the Christmas bonus shall be excluded from that estimate by virtue of paragraph (a) or (b) above.”