The Social Security (Contributions) (Re-rating) Order 1991

Made: 5th March 1991

Coming into force: 6th April 1991

Now, therefore, the Secretary of State for Social Security, in conjunction with the Treasury so far as relates to matters with regard to which the Treasury has so directed[^f00006], in exercise of powers conferred by sections 120(5) and (6), 121(2), 122(1) and 123A(2) of the said Act and of all other powers enabling him in that behalf, hereby makes the following Order:

Citation, commencement and interpretation

1

• (1) This Order may be cited as the Social Security (Contributions) (Re-rating) Order 1991 and shall come into force on 6th April 1991.

• (2) In this Order “the Act” means the Social Security Act 1975.

Weekly earnings figures and appropriate percentage rates for secondary earnings brackets

2

• (1) Section 4 of the Act (incidence of Class 1 contributions) shall be amended in accordance with the provisions of this article.

• (2) In subsection (6E)[^f00007] (secondary earnings brackets)—

• (a) for the figure £79.99 specified in respect of Bracket 1 there shall be substituted the figure £84.99 and for the percentage rate figure 5 there shall be substituted the figure 4.6;

• (b) for the figures £80.00 and £124.99 specified in respect of Bracket 2 there shall be substituted respectively the figures £85.00 and £129.99 and for the percentage rate figure 7 there shall be substituted the figure 6.6;

• (c) for the figures £125.00 and £174.99 specified in respect of Bracket 3 there shall be substituted respectively the figures £130.00 and £184.99 and for the percentage rate figure 9 there shall be substituted the figure 8.6;

• (d) for the figure £175.00 specified in respect of Bracket 4 there shall be substituted the figure £185.00 and for the percentage rate figure 10.45 there shall be substituted the figure 10.4.

Rate of, and small earnings exception from, Class 2 contributions

3

In section 7 of the Act (Class 2 contributions)—

• (a) in subsection (1) (weekly rate) for the figure £4.55[^f00008] there shall be substituted the figure £5.15;

• (b) in subsection (5) (small earnings exception) for the figure £2,600[^f00009] there shall be substituted the figure £2,900.

Amount of Class 3 contributions

4

In section 8(1) of the Act (amount of Class 3 contributions) for the figure £4.45[^f00010] there shall be substituted the figure £5.05.

Lower and upper limits for Class 4 contributions

5

In sections 9(2) and 10(1) of the Act (Class 4 contributions recoverable under Tax Acts and regulations)—

• (a) for the figure £5,450 (lower limit)[^f00011] wherever it appears there shall be substituted in each of those sections the figure £5,900;

• (b) for the figure £18,200 (upper limit)[^f00012] there shall be substituted in each of those sections the figure £20,280.

Signed

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

Nicholas Scott — Minister of State, — Department of Social Security — 1st March 1991

We Consent,

Sydney Chapman — Irvine Patnick — Two of the Lords Commissioners of Her Majesty’s Treasury — 5th March 1991

Explanatory note

(This note is not part of the Order)

This Order reduces the percentage rates appropriate to, and increases the amounts of weekly earnings specified, in the secondary earnings brackets in section 4(6E) of the Social Security Act 1975 (“the Act”) determining the rate at which Class 1 contributions are payable under that Act (article 2). The percentage rates appropriate to the relevant secondary earnings brackets are reduced, in respect of Bracket 1 from 5% to 4.6%, in respect of Bracket 2 from 7% to 6.6%, in respect of Bracket 3 from 9% to 8.6% and in respect of Bracket 4 from 10.45% to 10.4%. The increases in amounts of weekly earnings in respect of Bracket 1 are from £79.99 to £84.99, in respect of Bracket 2 are from £80.00 and £124.99 to £85.00 and £129.99, in respect of Bracket 3 are from £125.00 and £174.99 to £130.00 and £184.99 and in respect of Bracket 4 are from £175.00 to £185.00.

The Order increases the rates of Class 2 and Class 3 contributions payable under the Act from £4.55 to £5.15 and from £4.45 to £5.05 respectively (articles 3(a) and 4). It increases from £2,600 to £2,900 the amount of earnings below which an earner may be excepted from liability for Class 2 contributions (article 3(b)). It also increases, from £5,450 to £5,900 and from £18,200 to £20,280, the lower and upper limits of profits or gains between which Class 4contributions are payable (article 5).

In accordance with sections 121(1), 123(2) and 123A(6A) of the Act, a copy of the report by the Government Actuary (Cm. 1366), giving his opinion on the likely effect on the National Insurance Fund of the making of the Order in so far as it amends sections 4(6E), 7, 8(1), 9(2) and 10(1) of the Act, was laid before Parliament with a draft of this Order.

Footnotes

[^f00001]: 1975 c. 14; section 120(2) was amended by the Social Security Pensions Act 1975 (c. 60), Schedule 4, paragraph 50(b), and see paragraph 50(a).

[^f00002]: Section 122(1) was amended by the Social Security Act 1985 (c. 53), Schedule 5, paragraph 9(a) and by the Social Security Act 1989 (c. 24), section 1(3).

[^f00003]: Section 123A was inserted by section 7(5) of the Social Security Act 1985 and amended by section 74(1) and (2) of the Social Security Act 1986 (c. 50), by section 1(6) and (7) of the Social Security Act 1989 and by Schedule 6, paragraph 1(2)(c) to the Social Security Act 1990 (c. 27).

[^f00004]: Section 4(6E) was inserted by section 7(2) of the Social Security Act 1985; the relevant instrument amending section 4(6E) is S.I. 1990/321.

[^f00005]: Section 123 was amended by Schedule 6, paragraph 1(2)(b) to the Social Security Act 1990.

[^f00006]: See section 166(5) of the Social Security Act 1975.

[^f00007]: See S.I. 1990/321, article 2(2).

[^f00008]: See S.I. 1990/321, article 3(a).

[^f00009]: See S.I. 1990/321, article 3(b).

[^f00010]: See S.I. 1990/321, article 4.

[^f00011]: See S.I. 1990/321, article 5(a).

[^f00012]: See S.I. 1990/321, article 5(b).