The Social Security (Contributions and Allocation of Contributions) (Re-rating) Order 1989

Citation, commencement and interpretation

1.—(1) This Order may be cited as the Social Security (Contributions and Allocation of Contributions) (Re-rating) Order 1989 and shall come into force on 6th April 1989.

(2) In this Order “the Act” means the Social Security Act 1975.

Weekly earnings figures for primary and secondary earnings brackets

2.—(1) Section 4 of the Act (incidence of Class 1 contributions) shall be amended in accordance with the provisions of this article.

(2) In subsection (6B)(1) (primary earnings brackets)–

(a) for the figure £69.99 specified in respect of Bracket 1 there shall be substituted the figure £74.99;

(b) for the figures £70.00 and £104.99 specified in respect of Bracket 2 there shall be substituted respectively the figures £75.00 and £114.99;

(c) for the figure £105.00 specified in respect of Bracket 3 there shall be substituted the figure £115.00.

(3) In subsection (6E)(2) (secondary earnings brackets)–

(a) for the figure £69.99 specified in respect of Bracket 1 there shall be substituted the figure £74.99;

(b) for the figures £70.00 and £104.99 specified in respect of Bracket 2 there shall be substituted respectively the figures £75.00 and £114.99;

(c) for the figures £105.00 and £154.99 specified in respect of Bracket 3 there shall be substituted respectively the figures £115.00 and £164.99;

(d) for the figure £155.00 specified in respect of Bracket 4 there shall be substituted the figure £165.00.

Rate of, and small earnings exception from, Class 2 contributions

3.  In section 7 of the Act (Class 2 contributions)–

(a) in subsection (1) (weekly rate) for the figure £4.05(3) there shall be substituted the figure £4.25;

(b) in subsection (5) (small earnings exception) for the figure £2,250(4) there shall be substituted the figure £2,350.

Amount of Class 3 contribution

4.  In section 8(1) of the Act (amount of Class 3 contributions) for the figure £3.95(5) there shall be substituted the figure £4.15.

Lower and upper limits for Class 4 contributions

5.  In sections 9(2) and 10(1) of the Act (Class 4 contributions recoverable under Tax Acts and regulations)–

(a) for the figure £4,750 (lower limit)(6) wherever it appears there shall be substituted in each of those sections the figure £5,050;

(b) for the figure £15,860 (upper limit)(7) there shall be substituted in each of those sections the figure £16,900.

Percentage rates of appropriate national health service allocation

6.—(1) Section 134(4) of the Act(8) (allocation of contributions) shall be amended in accordance with the provisions of this article.

(2) In the definition of “the appropriate national health service allocation”–

(a) in paragraph (a) (primary Class 1 contributions) for the words “0.95 per cent.”(9) there shall be substituted the words “1.05 per cent.”;

(b) in paragraph (b) (secondary Class 1 contributions) for the words “0.8 per cent.” there shall be substituted the words “0.9 per cent.”.

Appropriate employment protection allocation

7.  It is hereby directed that there shall be no appropriate employment protection allocation in relation to the tax year beginning on 6th April 1989 or in relation to any subsequent tax year, and section 134 of the Act shall have effect accordingly.

Signed by authority of the Secretary of State for Social Security.

Skelmersdale

Parliamentary Under-Secretary of State,

Department of Social Security

4th January 1989

D. Lightbown

David Maclean

Two of the Lords Commissioners of Her Majesty’s Treasury

10th January 1989