§ 13. Mr. David NicholsonTo ask the Secretary of State for Social Security what is the latest estimate of the number of standard rate taxpayers who would be affected by the abolition of the upper earnings limit on national insurance contributions.
§ Mr. NewtonIf the upper earnings limit for employees' national insurance contributions were removed, about 3.3 916 million people would pay more contributions, of whom about 2.1 million would be standard rate taxpayers and about another 500,000 self-employed people, of whom about 200,000 would be standard rate taxpayers, would pay more contributions if the upper profits limit were also removed.
§ Mr. NicholsonI am grateful for that valuable information, which my hon. Friends and I will certainly wish to use in the coming months. Does my right hon. Friend recall a previous occasion when rash and extravagant promises were made to sections of the electorate as bribes by the Labour party and then, once the Labour party had obtained power, those electors paid for those promises in higher inflation and taxation? Does my right hon. Friend believe that the British people will be taken in yet again?
§ Mr. NewtonI certainly do not believe that the British people will be taken in by a number of the things that were said in Blackpool 10 days ago and on several other occasions by the hon. Members for Oldham, West (Mr. Meacher) and for Birmingham, Ladywood (Ms. Short). It is relevant that the figures that I have just given the House clearly show how spurious was the attempt to pretend that basic rate taxpayers would not face extra bills as a result of Labour party policy.
§ Mr. MeacherAs the abolition of the upper earnings limit is intended to finance a desperately needed pension increase, is the Secretary of State ashamed that the 2 million poorest pensioners, who have no income but the state retirement pension or income support, have had a zero increase in their pension in real terms over the past 11 years? Is the right hon. Gentleman or the Prime Minister proud that, since 1979, all tax cuts to the rich have been paid for as a result of the Tory Government's breaking of the uprating link with earnings? Given that the Government have purloined £22 billion owing to pensioners over the past 11 years, is not it about time that the Government gave priority to the poorest pensioners rather than to the richest taxpayers?
§ Mr. NewtonThe hon. Gentleman has not only a rare talent for hyperbole but a very short memory indeed. It is just a year, almost to the day, since the present Government put £200 million extra public money into increasing premiums in the income support system for older and more disabled pensioners. That is a clear indication of our concern to improve their position.