These Regulations further amend the Social Security (Contributions) Regulations 1979 (“the principal Regulations”).

Regulation 1 provides for citation, commencement and interpretation.

Regulation 2 substitutes regulation 7 of the principal Regulations to specify the lower earnings limit, upper earnings limit, primary threshold and secondary threshold for the tax year beginning on 6th April 2000.

Regulation 3 substitutes regulation 8 of the principal Regulations to provide for the equivalents of the lower earnings limit, upper earnings limit, primary threshold and secondary threshold where an employed earner’s earnings period is other than a week.

Regulation 4 revokes regulation 9(1)(b)(ii) of the principal Regulations (which provided for a minimal primary Class 1 contribution to be paid where the employed earner’s earnings in the relevant earnings period marginally exceeded the lower earnings limit).

The costs to business of the amendments in the Welfare Reform and Pensions Act 1999 were covered in the Regulatory Impact Assessment for that Act. A copy of this Assessment can be obtained from the Department of Social Security, Better Regulation Unit, Level 3, The Adelphi, 1-11 John Adam Street, London, WC2N 6HT. A copy of the Assessment has been placed in the libraries of both Houses of Parliament. Certain other limits and thresholds increase broadly in line with the rise in price inflation while the upper earnings limit increases in accordance with the announcement in the March 1999 Budget.