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National Insurance Contributions

National Insurance Contributions Bill

Key Benefits
The Bill would raise the Upper Earnings Threshold for National Insurance Contributions to align with the higher rate threshold for income tax and introduce the Upper Accruals Point for the State Second Pension in 2009. The main benefits of the Bill and the related changes to personal taxation would be: Delivery of an integral part of the Chancellor's commitment in Budget 2007 to a package of reforms to modernise the personal tax and benefit system, offering more support for work, families and pensioners. Alignment of the UEL with the point at which higher rate income tax becomes payable; and Removing the restrictions to the current maximum level of the UEL, which stipulate that it can be no more than seven and a half times the Primary Threshold and; It also includes consequential changes announced at PBR on 9 October 2007. Following the Pensions White Paper, the Pensions Act 2007 puts in place proposals to reform the State Second Pension so that it becomes a simple, flat rate weekly top-up to the basic State Pension by around 2030. The Bill will introduce the Upper Accruals Point for State Second Pension in 2009.
National Insurance Contributions
Bill Text
National Insurance Contributions
Explanatory Notes
National Insurance Contributions
Territorial Extent
United Kingdom

National Insurance Contributions are a reserved matter in each of the devolved administrations; hence the provisions in this Bill relating to Contributions will extend to England, Scotland, Wales and Northern Ireland. Pensions are a reserved matter in Scotland and Wales but are transferred to the Northern Ireland Assembly, and the provisions in this Bill relating to Pensions will extend to England, Scotland and Wales only unless otherwise stated.

Related Documents

Existing Legislation in this area

Social Security Contributions and Social Security Act 1992
Social Security Administration Act 1992
Social Security (Contributions) Regulations 2001