Health and Social Care Levy Act 2021 repealed

The Health and Social Care Levy Act 2021 was repealed on 25 October 2022 by the Health and Social Care Levy (Repeal) Act 2022 (c. 43), according to the legislation.gov.uk record of the Social Security Contributions and Benefits Act 1992¹. The 2021 Act had modified Part 1 of the 1992 Act for the tax year 2022-23¹.

The Social Security Contributions and Benefits Act 1992 is the consolidation statute that sets out the classes of national insurance contributions payable by earners, employers and others¹. It received Royal Assent on 13 February 1992 and came wholly into force on 1 July 1992, except as provided in the Social Security (Consequential Provisions) Act 1992¹. The classes it establishes include Class 1, earnings-related, payable under section 6, comprising primary Class 1 contributions from employed earners and secondary Class 1 contributions from employers and other persons paying earnings; Class 2, flat-rate, payable under section 11 by self-employed earners; Class 3, payable under section 13 or 13A by earners and others voluntarily with a view to providing entitlement to benefit, or making up entitlement; Class 3A, payable by eligible people voluntarily under section 14A with a view to obtaining units of additional pension; and Class 4, payable under section 15 in respect of the profits or gains of a trade, profession or vocation, or under section 18 in respect of equivalent earnings¹.

The 1992 Act also sets residence and presence conditions. No person is liable to pay Class 1, Class 1A, Class 1B or Class 2 contributions unless they fulfil prescribed conditions as to residence or presence in Great Britain, and no person is entitled to pay Class 3 contributions unless they fulfil such conditions¹. Contributions are payable to the Inland Revenue by earners, employers and others, and for each financial year there is, by way of addition to contributions, a payment out of money provided by Parliament¹.

The repeal is recorded in the changes to legislation for the 1992 Act, which states that the 2021 Act was repealed on 25 October 2022 by the Health and Social Care Levy (Repeal) Act 2022¹. The 1992 Act is described as up to date with all changes known to be in force on or before 27 September 2026, with changes that may be brought into force at a future date also noted¹.

Why it matters for households

The repeal removes the statutory basis of the health and social care levy that had been built into the national insurance system for 2022-23¹. The 1992 Act continues to govern the contribution classes that determine entitlement to contributory benefits and the state pension, including Class 1 contributions from employed earners and their employers, Class 2 and Class 4 contributions from self-employed earners, and voluntary Class 3 and Class 3A contributions¹. The residence and presence conditions in the 1992 Act remain in force, so liability to pay Class 1, Class 1A, Class 1B and Class 2 contributions, and entitlement to pay Class 3 contributions, still depend on fulfilling the prescribed conditions¹.

What happens next

The repeal took effect on 25 October 2022¹. The 1992 Act remains in force, with the changes recorded as in force on or before 27 September 2026 and further changes that may be brought into force at a future date noted¹. No further steps are set out in the record of the 1992 Act¹.