The Social Security (Contributions) (Re-rating and National Insurance Funds Payments) Order 2007

As a result of carrying out in the tax year 2006-07 a review of the general level of earnings in Great Britain in accordance with section 141(1) and (2) of the Social Security Administration Act 1992 (“the Administration Act”)1, the Treasury have determined that an Order should be made under that section amending Part 1 of the Social Security Contributions and Benefits Act 19922 by altering the rates of Class 2 and Class 3 contributions, the amount of earnings below which an earner may be excepted from liability for Class 2 contributions and the lower and upper limits of profits or gains to be taken into account for Class 4 contributions.

This Order makes provision for Northern Ireland, which corresponds to that mentioned in relation to Great Britain in the preceding recital, in accordance with section 129 of the Social Security Administration (Northern Ireland) Act 1992 (“the Northern Ireland Administration Act”)3.

With a view to adjusting the level at which the National Insurance Fund stands for the time being, and having regard to estimated benefit expenditure for the financial year ending 31st March 2008, the Treasury think it expedient that an Order should be made under section 2(2) of the Social Security Act 1993 (“the 1993 Act”)4.

With a view to adjusting the level at which the Northern Ireland National Insurance Fund stands for the time being, and having regard to estimated benefit expenditure for the financial year ending 31st March 2008, the Treasury think it expedient that an Order should be made under Article 4(3) of the Social Security (Northern Ireland) Order 1993 (“the 1993 Order”)5.

A draft of this Order was laid before Parliament in accordance with the provisions of sections 141(3) and 190(1)(a) of the Administration Act6, section 166(10A) of the Northern Ireland Administration Act7, section 2(8) of the 1993 Act and Article 4(8) of the 1993 Order8 and approved by resolution of each House of Parliament.