GovWire

Treasury has provided a report detailing the reasons for not laying before Parliament a draft order under section 141 to amend Part I of the Social Security Contributions and Benefits Act 1992 to change Class 2 and Class 3 rates or thresholds; or Class 4 thresholds 2024-25.

This report accompanies the annual re-rating statutory instrument laid on 15 January.

The weekly rate of Class 2 and Class 3 NICs and the Small Profits Threshold for Class 2 will remain unchanged in 24/25. The Class 4 Lower Profits Limit and Upper Profits Limit will remain fixed for 24/25 in line with income tax thresholds. At Autumn Statement the Government cut the rates of Class 1 (with effect from 6 January 2024) and Class 4 National Insurance contributions and removed the liability to pay Class 2 for self-employed people with profits above 12,570 (with effect from 6 April 2024), these were legislated for in the National Insurance Contributions (Reduction in Rates) Act 2023.