The Social Security (Contributions) (Re-rating and Northern Ireland National Insurance Fund Payments) Order (Northern Ireland) 1997

Made3rd March 1997

Coming into operation6th April 1997

Whereas the Secretary of State for Social Security has made an Order1 under sections 141(4) and (5), 142(2), 143(1) and 189(1) and (3) of the Social Security Administration Act 19922 and section 2(2) and (8) of the Social Security Act 19933:

Now, therefore, the Department of Health and Social Services for Northern Ireland, in exercise of the powers conferred on it by sections 129 and 165(1) and (3) of the Social Security Administration (Northern Ireland) Act 19924 and Article 4(3) of the Social Security (Northern Ireland) Order 19935 and of all other powers enabling it in that behalf, and with the consent of the Department of Finance and Personnel in so far as relates to Article 6 of this Order, hereby makes the following Order:

Citation, commencement and interpretation1.

(1)

This Order may be cited as the Social Security (Contributions) (Re-rating and Northern Ireland National Insurance Fund Payments) Order (Northern Ireland) 1997 and shall come into operation on 6th April 1997.

(2)

In this Order “the Act” means the Social Security Contributions and Benefits (Northern Ireland) Act 19926.

(3)

The Interpretation Act (Northern Ireland) 19547 shall apply to this Order as it applies to a Measure of the Assembly.

Percentage rate figures for secondary earnings brackets2.

In section 9(3) of the Act (appropriate percentage rates) for the figure 10·2 specified in respect of Bracket 48 there shall be substituted the figure 10.

Rate of, and small earnings exception from, Class 2 contributions3.

In section 11 of the Act9 (Class 2 contributions)—

(a)

in subsection (1) (weekly rate) for “£6·05” there shall be substituted “£6·15”;

(b)

in subsection (4) (small earnings exception) for “£3,430” there shall be substituted “£3,480”.

Amount of Class 3 contributions4.

In section 13(1) of the Act10 (amount of Class 3 contributions) for “£5·95” there shall be substituted “£6·05”.

Lower and upper limits for Class 4 contributions5.

In sections 15(3) and 18(1) of the Act11 (Class 4 contributions recoverable under the Income Tax Acts and under regulations)—

(a)

for “£6,860” (lower limit) wherever it appears there shall be substituted in each of those sections “£7,010”;

(b)

for “£23,660” (upper limit) there shall be substituted in each of those sections “£24,180”.

Prescribed percentage of estimated benefit expenditure6.

Article 4(3) of the Social Security (Northern Ireland) Order 1993 (payments into National Insurance Fund out of appropriated money) shall have effect with respect to the tax year 1997-98 and the prescribed percentage of estimated benefit expenditure for the financial year ending in that tax year shall be 4 per cent.

Sealed with the Official Seal of the Department of Health and Social Services for Northern Ireland on

John O'Neill

Assistant Secretary

3rd March 1997.

The Department of Finance and Personnel hereby consents to Article 6 of the foregoing Order.

Sealed with the Official Seal of the Department of Finance and Personnel on

J. G. Sullivan

Assistant Secretary

3rd March 1997.

(This note is not part of the Order.)

This Order corresponds to an Order (S.I. 1997/544) made by the Secretary of State for Social Security under sections 141(4) and (5), 142(2), 143(1) and 189(1) and (3) of the Social Security Administration Act 1992 and section 2(2) and (8) of the Social Security Act 1993.

The Order reduces the main percentage rate appropriate to the secondary earnings brackets in section 9(3) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (“the Act”), which determine the amount of secondary Class 1 contributions payable under the Act. The percentage rate is reduced in respect of Bracket 4 from 10·2 to 10 per cent. (Article 2).

The Order increases the rate of Class 2 and amount of Class 3 contributions specified in sections 11(1) and 13(1) of the Act from £6·05 to £6·15 and from £5·95 to £6·05 respectively (Articles 3(a) and 4). It also increases, from £3,430 to £3,480, the amount of earnings specified in section 11(4) of the Act below which an earner may be excepted from liability for Class 2 contributions (Article 3(b)).

The Order increases, from £6,860 to £7,010 and from £23,660 to £24,180 respectively, the lower and upper limits of profits or gains specified in sections 15(3) and 18(1) of the Act between which Class 4 contributions are payable (Article 5).

The Order provides for Article 4(3) of the Social Security (Northern Ireland) Order 1993 to have effect for the tax year 1997-98. It also provides that the amount of appropriated money to be paid into the Northern Ireland National Insurance Fund in that tax year shall not exceed in aggregate 4 per cent. of the estimated benefit expenditure for the financial year ending in that tax year (Article 6).