The Social Security (Contributions) (Rates, Limits and Thresholds Amendments, National Insurance Funds Payments and Extension of Veteran's Relief) Regulations 2025

the Contributions Act the Northern Ireland Contributions Act the Administration Act the Northern Ireland Administration Act the 1993 Act the 1993 Order 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(“”), 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(“”), section 141(4) and 142(2) and (3) of the Social Security Administration Act 1992(“”), section 129 of the Social Security Administration (Northern Ireland) Act 1992(“”), section 2(2) and (3) of the Social Security Act 1993(“”) and Article 4(3) and (4) of the Social Security (Northern Ireland) Order 1993(“”) and sections 6(6) and 8(4) to (8) of the National Insurance Contributions Act 2022(“the NICA 2022”). Regulations 3 and 4 are made as a result of the Treasury carrying out in the tax year 2024-25 a review of the general level of earnings in Great Britain in accordance with section 141(1) and (2) of the Administration Act. 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 small profits threshold for, Class 2 contributions and the rate of Class 3 contributions. 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 2026, the Treasury think it expedient that regulation 7 should be made under section 2(2) and (3) 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 2026, the Treasury think it expedient that regulation 8 should be made under Article 4(3) and (4) 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, section 172(11ZA), (11ZB) and (11A) of the Northern Ireland Contributions Act, sections 141(3) and 190(1)(a) of the Administration Act, section 166(10A) of the Northern Ireland Administration Act, section 2(8) of the 1993 Act, Article 4(8) of the 1993 Orderand section 12(2) of the NICA 2022and approved by a resolution of each House of Parliament.