These Regulations amend the Statutory Maternity Pay (Compensation of Employers) and Miscellaneous Amendment Regulations 1994 (“the principal Regulations”).

The principal Regulations enable an employer to recover payments of statutory maternity pay and, if he is a small employer, an additional amount in respect of such pay. These Regulations reduce the additional amount from 7 per cent. to 5 per cent. of the payment of statutory maternity pay. The reduction takes effect from 6th April 1999.

The proposals for these Regulations, which are made under section 167(1)(c) of the Social Security Contributions and Benefits Act 1992, are exempt from reference to the Social Security Advisory Committee by virtue of section 172(3) of, and paragraph 8 of Part I of Schedule 7 to, the Social Security Administration Act 1992 (c. 5).

These Regulations impose no new costs on business.