§ Lord VAIZEY
asked Her Majesty's Government:
What would be the saving to the Exchequer if the ceiling on National Insurance contributions was abolished for persons earnings up to (a) £8,000 a year; (b) £9,000 a year; (c) £10,000 a year; (d) £15,000 a year and (e) over £15,000 a year.
§ Lord WELLS-PESTELL
On the earnings and unemployment assumptions used in the report by the Government Actuary on the draft of the Social Security (Contributions Re-Rating) Order 1978, Cmnd. 7403, it is estimated that contributions, including the National Insurance surcharge, in the United Kingdom in 943WA respect of the tax year 1979–80 would increase as follows:—
Upper earnings limit £ million (a) £8,000 a year and weekly equivalent 220 (b) £9,000 a year and weekly equivalent 340 (c) £10,000 a year and weekly equivalent 420 (d) £15,000 a year and weekly equivalent 540 (e) over £15,000 a year (no limit) 580
In later years that part of the additional contributions payable to the National Insurance Fund would be to some extent offset by the additional benefit that the additional contributions would attract.