2023 No. 236

Made1st March 2023

Coming into force6th April 2023

These Regulations are made by the Treasury, in exercise of the powers conferred by sections 5(1) and (4) to (6), 9A(7) and (8), 9B(4) and (5) and 175(3) of the Social Security Contributions and Benefits Act 19921 (“the Contributions Act”), sections 5(1) and (4) to (6), 9A(7) and (8), 9B(4) and (5) and 171(3) and (10) of the Social Security Contributions and Benefits (Northern Ireland) Act 19922 (“the Northern Ireland Contributions Act”), sections 141(4) and 142(2) and (3) of the Social Security Administration Act 19923 (“the Administration Act”), section 129 of the Social Security Administration (Northern Ireland) Act 19924 (“the Northern Ireland Administration Act”), section 2(2) and (3) of the Social Security Act 19935 (“the 1993 Act”), article 4(3) and (4) of the Social Security (Northern Ireland) Order 19936 (“the 1993 Order”) and section 8(4) to (8) of the National Insurance Contributions Act 20227 (“the NICA 2022”).

Regulations 3 and 4 are made as a result of the Treasury carrying out in the tax year 2022-23 a review of the general level of earnings in Great Britain in accordance with section 141(1) and (2) of the Administration Act8.

The Treasury have determined that, in relation to Great Britain, regulations 3 and 4 should be made under section 141 of the Administration Act to amend Part 1 of the Contributions Act by altering the rate of, and the lower profits threshold for, Class 2 contributions and the amount of a Class 3 contribution.

Regulations 3 and 4 make 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 Northern Ireland Administration Act.

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 with 31st March 2024, the Treasury think it expedient that regulation 7 should be made under section 2(2) of the 1993 Act.

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 with 31st March 2024, the Treasury think it expedient that regulation 8 should be made under article 4(3) of the 1993 Order.