Statutory Instruments
2023 No. 236
Social Security
The Social Security (Contributions) (Rates, Limits and Thresholds Amendments and National Insurance Funds Payments) Regulations 2023
Made
1st March 2023
Coming into force
6th 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 1992( 1 ) (“ 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 1992( 2 ) (“ the Northern Ireland Contributions Act ”), sections 141(4) and 142(2) and (3) of the Social Security Administration Act 1992( 3 ) (“ the Administration Act ”), section 129 of the Social Security Administration (Northern Ireland) Act 1992( 4 ) (“ the Northern Ireland Administration Act ”), section 2(2) and (3) of the Social Security Act 1993( 5 ) (“ the 1993 Act ”), article 4(3) and (4) of the Social Security (Northern Ireland) Order 1993( 6 ) (“ the 1993 Order ”) and section 8(4) to (8) of the National Insurance Contributions Act 2022( 7 ) (“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 Act( 8 ).
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.
A draft of these Regulations was laid before Parliament in accordance with the provisions of section 176(1)(za), (zb) and (a) of the Contributions Act( 9 ), section 172(11ZA), (11ZB) and (11A) of the Northern Ireland Contributions Act( 10 ), sections 141(3) and 190(1)(a) of the Administration Act( 11 ), section 166(10A) of the Northern Ireland Administration Act( 12 ), section 2(8) of the 1993 Act, article 4(8) of the 1993 Order( 13 ) and section 12(2) of the NICA 2022 and approved by a resolution of each House of Parliament.
PART 1 General
Citation and commencement I1
1. These Regulations may be cited as the Social Security (Contributions) (Rates, Limits and Thresholds Amendments and National Insurance Funds Payments) Regulations 2023 and come into force on 6th April 2023.
PART 2 Rates, limits and thresholds for National Insurance contributions
Interpretation I2
2. In this Part—
“ the Act ” means the Social Security Contributions and Benefits Act 1992; and
“ the Northern Ireland Act ” means the Social Security Contributions and Benefits (Northern Ireland) Act 1992.
Rate of and lower profits threshold for Class 2 contributions I3
3. In section 11 of the Act( 14 ) and the Northern Ireland Act( 15 ) (Class 2 contributions)—
(a) in subsections (2) and (6) for “£3.15” substitute “£3.45” ; and
(b) in subsection (4)(a) (lower profits threshold) for “£11,908” substitute “£12,570” .
Amount of a Class 3 contribution I4
4. In section 13(1) of the Act( 16 ) and the Northern Ireland Act( 17 ) (Class 3 contributions) for “£15.85” substitute “£17.45” .
Amendment to the Social Security (Contributions) Regulations 2001I5
5. In regulation 10 of the Social Security (Contributions) Regulations 2001( 18 ) (earnings limits and thresholds) in the introductory words for “2022” substitute “2023” .
Amendments to the National Insurance Contributions Act 2022I6
6. In section 8 of the National Insurance Contributions Act 2022(upper secondary threshold for earnings: freeport tax site employees and armed forces veterans)—
(a) in subsection (1) for “year beginning with 6 April 2022” substitute “years beginning with 6 April 2022 and 6 April 2023” ; and
(b) in subsection (2) for “and 6 April 2022” substitute “, 6 April 2022 and 6 April 2023” .
PART 3 National Insurance Funds
Prescribed percentage of estimated benefit expenditure – Great Britain I7
7.Section 2(2) of the Social Security Act 1993 (payments into National Insurance Fund out of money provided by Parliament) has effect with respect to the tax year 2023-24 and the prescribed percentage of estimated benefit expenditure for the financial year ending with 31st March in that tax year shall be 5 per cent.
Prescribed percentage of estimated benefit expenditure – Northern Ireland I8
8.Article 4(3) of the Social Security (Northern Ireland) Order 1993 (payments into Northern Ireland National Insurance Fund out of appropriated money) has effect with respect to the tax year 2023-24 and the prescribed percentage of estimated benefit expenditure for the financial year ending with 31st March in that tax year shall be 5 per cent.
Andrew Stephenson
Steve Double
Two of the Lords Commissioners of His Majesty’s Treasury
1st March 2023
1992 c. 4 ; section 5 was substituted by paragraph 1 of Schedule 9 to the Welfare Reform and Pensions Act 1999 (c. 30) (“the WRPA 1999”) and section 5(1) was amended by section 1(1)(a) of, and Schedule 2 to, the National Insurance Contributions Act 2008 (c. 16) (“the NICA 2008”). Section 9A was inserted by section 9(3) of the National Insurance Contributions Act 2014 (c. 7) (“the NICA 2014”) and amended by section 1(3) of the National Insurance Contributions Act 2015 (c. 5) (“the NICA 2015”). Section 9B was inserted by section 1(4) of the NICA 2015.
1992 c. 7 ; section 5 was substituted by paragraph 1 of Schedule 10 to the WRPA 1999 and section 5(1) was amended by section 2(1)(a) of, and Schedule 2 to, the NICA 2008. Section 9A was inserted by section 9(8) of the NICA 2014 and amended by section 1(8) of the NICA 2015. Section 9B was inserted by section 1(9) of the NICA 2015. Section 171(10) was substituted by paragraph 28(3) of Schedule 3 to the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999 ( S.I. 1999/671 ) (“ the Transfer Order ”).
1992 c. 5 ; section 141(4) was amended by paragraph 16 of Schedule 1 to the National Insurance Contributions Act 2002 (c. 19) (“the NICA 2002”), paragraph 20 of Schedule 1 to the NICA 2015 and regulation 4(1) of S.I. 2022/1329 . Section 142(2) was amended by paragraph 45(3) of Schedule 3 to the Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2) (“ the Transfer Act ”).
1992 c. 8 ; section 129 was relevantly amended by paragraph 43 of Schedule 3 to the Transfer Order.
1993 c. 3 ; section 2(2) was amended by paragraph 60(2) of Schedule 3 to the Transfer Act.
S.I. 1993/592 (N.I. 2) ; article 4(3) was amended by paragraph 52(2) of Schedule 3 to the Transfer Order.
Section 141(1) and (2) was amended by paragraph 44(2) and (3) of Schedule 3 to the Transfer Act.
Section 176(1)(za) was inserted by section 7(5) of the Pensions Act 2007 (c. 22) (“the PA 2007”). Section 176(1)(zb) was inserted by section 1(2) of the NICA 2008. Section 176(1)(a) was relevantly amended by section 9(5) of the NICA 2014 and section 1(5) of the NICA 2015.
Section 172(11ZA) was inserted by section 8(5)(b) of the PA 2007. Section 172(11ZB) was inserted by section 2(2) of the NICA 2008. Section 172(11A) was inserted by paragraph 29(5) of Schedule 3 to the Transfer Order and relevantly amended by section 9(10) of the NICA 2014 and section 1(10) of the NICA 2015.
Section 141(3) was amended by paragraph 44(4) of Schedule 3 to the Transfer Act. Section 190(1)(a) was amended by paragraph 110 of Schedule 7 to the Social Security Act 1998 (c. 14) , Part 6 of Schedule 13 to the WRPA 1999, paragraph 30 of Schedule 1 to the PA 2007 and paragraph 27 of Schedule 12 to the Pensions Act 2014 (c. 19) .
Section 166(10A) was inserted by paragraph 50(4) of Schedule 3 to the Transfer Order and amended by paragraph 11(3) of Schedule 4 to the Tax Credits Act 2002 (c. 21) .
Article 4(8) was substituted by paragraph 52(5) of Schedule 3 to the Transfer Order.
Section 11 was substituted by paragraph 3 of Schedule 1 to the NICA 2015. The figure in subsections (2) and (6) was last substituted by S.I. 2022/232 . Section 11(4) was substituted by regulation 2(3) of S.I. 2022/1329 .
Section 11 was substituted by paragraph 12 of Schedule 1 to the NICA 2015. The figure in subsections (2) and (6) was last substituted by S.I. 2022/232 . Section 11(4) was substituted by regulation 3(3) of S.I. 2022/1329 .
Section 13(1) was amended by paragraph 14(2) of Schedule 3 to the Transfer Act. The figure in subsection (1) was last substituted by S.I. 2022/232 .
Section 13(1) was amended by paragraph 15(2) of Schedule 3 to the Transfer Order. The figure in subsection (1) was last substituted by S.I. 2022/232 .
S.I. 2001/1004 was amended by section 1(2) of the National Insurance Contributions (Increase of Thresholds) Act 2022 (c. 16) and relevant amending instruments are S.I. 2009/111 , 2011/940 , 2015/577 , 2016/343 , 2021/157 and 2022/232 .