33. Mr. R. C. Mitchell
asked the Minister of Pensions and National Insurance if she will define what is meant by a self-employed person for the purpose of regulations under the National Insurance schemes.
§ The Minister of Pensions and National Insurance (Miss Margaret Herbison)
A self-employed person for the purposes of the National Insurance Act, 1965, may be broadly defined as one who is gainfully employed in employment in Great Britain which is not employment under a contract of service. Modifications have been made by regulation in a number of cases where the nature and circumstances of particular types of employment have made this desirable. I am sending my hon. Friend a copy of the relevant regulations.
Is my right hon. Friend aware that there is a growing practice, particularly in the building and road haulage industries, of employers encouraging their employees—I use the word advisedly—to register as self-employed and so evade their responsibilities under P.A.Y.E. and all the rest? Can my right hon. Friend take any steps to stop this?
§ Miss Herbison
Yes, Sir. The Government are aware of that and try wherever possible to take action against it. In reply to an earlier Question, my right hon. Friend the Minister of Public Building and Works showed that the Minister of Labour is also concerned in this matter.
§ Sir S. McAdden
Do people who seek by these devices to avoid their responsibilities under the National Insurance scheme, and so on, deprive their employees of benefit under that scheme also?
§ Miss Herbison
Yes, they suffer in certain ways. For their own good, it is much better if the full ordinary insurance is paid.