The Social Security (Contributions) (Re-rating) Consequential Amendment Regulations 2025
The Social Security (Contributions) (Re-rating) Consequential Amendment Regulations 2025, effective April 6th, 2025, amend the Social Security (Contributions) Regulations 2001.
Specifically, the amendment increases the Class 2 National Insurance contribution rate for share fishermen from £4.10 to £4.15.
These changes are consequential to annual adjustments to national insurance rates and are based on pre-determined indexation formulas.
A Tax Information and Impact Note was not prepared due to the routine and predetermined nature of the adjustments.
Arguments For
Maintaining consistency: The regulation updates the Class 2 National Insurance contribution rate for share fishermen in line with annual adjustments and pre-determined indexation formulas, ensuring consistent application of the existing policy.
Administrative efficiency: The amendment streamlines administrative processes by automatically updating the rate based on a pre-established formula, reducing the need for complex recalculations.
Transparency and predictability: Aligning the rate with an established indexation formula ensures transparency and predictability for share fishermen, allowing for better financial planning.
Arguments Against
Potential for inequity: While based on a formula, the indexation may not adequately reflect changes in the economic circumstances of the share fishing industry, potentially leading to disproportionate impact on this specific group.
Limited impact assessment: The absence of a Tax Information and Impact Note may signify a lack of comprehensive analysis regarding the economic consequences of the rate change on share fishermen and the wider fishing sector.
Alternative approaches: Other mechanisms to adjust contributions, such as direct review and targeted adjustments, might offer more nuanced consideration of specific industry needs and conditions.
- Citation and commencement (1) These Regulations may be cited as the Social Security (Contributions) (Re-rating) Consequential Amendment Regulations 2025. (2) These Regulations come into force on 6th April 2025 immediately after the coming into force of the Social Security (Contributions) (Rates, Limits and Thresholds Amendments, National Insurance Funds Payments and Extension of Veteran's Relief) Regulations 2025[5].
This section provides the official title and effective date of the regulations.
The regulations will be known as the Social Security (Contributions) (Re-rating) Consequential Amendment Regulations 2025 and will take effect on April 6th, 2025, simultaneously with another set of related regulations.
- Amendment to the Social Security (Contributions) Regulations 2001 In regulation 125(c) of the Social Security (Contributions) Regulations 2001[6] for “£4.10” substitute “£4.15”.
This section details the specific amendment made to existing legislation.
Regulation 125(c) of the Social Security (Contributions) Regulations 2001 is modified by replacing the value '£4.10' with '£4.15'.
This alters the special Class 2 National Insurance contribution rate for share fishermen.
Explanatory Note (This note is not part of the Regulations) These Regulations amend the Social Security (Contributions) Regulations 2001 (“the Contributions Regulations”) from 6th April 2025. They are made in consequence of annual regulations setting the rate at which Class 2 National Insurance contributions are payable which are made under section 141 of the Social Security Administration Act 1992 and section 129 of the Social Security Administration (Northern Ireland) Act 1992. Regulation 2 amends regulation 125(c) of the Contributions Regulations by increasing the special rate of any Class 2 National Insurance contribution payable by share fishermen from £4.10 to £4.15. A Tax Information and Impact Note has not been prepared for this instrument as it gives effect to previously announced policy and it relates to routine changes to rates, limits and thresholds to a predetermined indexation formula.
The Explanatory Note clarifies the purpose and effect of the regulations.
It explains that the amendments are a consequence of annual rate-setting and that the change impacts the Class 2 National Insurance contribution for share fishermen.
No detailed impact assessment was produced because the adjustments are routine and follow a pre-determined formula.
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