Explanatory Notes

National Insurance Contributions

106 The Bill will allow Government to temporarily modify the existing procedures around introducing national insurance contribution (NIC) changes, in order to respond quickly to the covid-19 outbreak if required. The clauses will remove the statutory requirement that a report from the Government Actuary Department accompany secondary legislation implementing rate changes. The Bill also provides for the secondary legislation to be subject to the negative procedure in Parliament rather than the affirmative procedure. The temporary modifications will last for two years from the day the Act receives Royal Assent.

107 Section 143 and 145 of the Social Security Administration Act 1992 provide that orders may alter the rate of contributions payable by employees, employers and the self-employed. Section 5 of the National Insurance Act 2014 provides that regulations may be made to alter the amount of the Employment Allowance and who qualifies for it.


Prepared 18th March 2020