The Social Security (Treasury Supplement to and Allocation of Contributions) (Re-rating) Order 1988

Made31st March 1988

Coming into force6th April 1988

Whereas a draft of this Order was laid before Parliament in accordance with the provisions of section 167(1) of the Social Security Act 1975(1) and approved by resolution of each House of Parliament:

Now, therefore, the Secretary of State for Social Services, with the consent of the Treasury, in exercise of the powers conferred upon him by sections 1(5A) and 134(4A) and (5A) of the Social Security Act 1975(2) and of all other powers enabling him in that behalf, hereby makes the following Order:—

Citation, commencement and interpretation1

1

This Order may be cited as the Social Security (Treasury Supplement to and Allocation of Contributions) (Re-rating) Order 1988 and shall come into force on6th April 1988.

2

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

Alteration of Treasury supplement to contributions2

In section 1(5) of the Act (Treasury supplement to contributions)(3) for the words “7 per cent.”(4) there shall be substituted the words “5 per cent.”.

Percentage rates of appropriate national health service allocation3

1

Section 134(4) of the Act(5) (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 “0·85 per cent.”(6) there shall be substituted the words “0·95 per cent.”;

b

in paragraph (b) (secondary Class 1 contributions) for the words “0·7 per cent.” there shall be substituted the words “0·8 per cent.”.

Appropriate employment protection allocation4

It is hereby directed that there shall be no appropriate employment protection allocation in relation to the tax year beginning on 6th April 1988, and section 134 of the Act shall have effect accordingly.

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

Michael PortilloParliamentary Under-Secretary of State,Department of Health and Social Security29th March 1988

Peter LloydMichael NeubertTwo of the Lords Commissioners of Her Majesty’s Treasury31st March 1988

(This note is not part of the Order)

This Order decreases the Treasury supplement to contributions paid under the Social Security Act 1975 from 7 per cent. to 5 per cent. (article 2).

It increases the percentage rates of the appropriate national health service allocation in the cases of primary Class 1 contributions (from 0·85 to 0·95 per cent.) and of secondary Class 1 contributions (from 0·7 to 0·8 per cent.).

It contains a direction that there shall be no appropriate employment protection allocation in relation to the tax year 1988—89.