HL Deb 22 November 1982 vol 436 cc784-5WA
Lord Monson

asked Her Majesty's Government:

What the effect on Government revenue would be at current earnings levels if:

  1. (a) the lower earnings limit for employees' national insurance contributions were abolished;
  2. (b) the upper earnings limit for employees' national insurance contributions were abolished;
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  3. (c) both the lower and upper earnings limits were abolished and the rate payable by the employee reduced from 9 per cent. to 7½ per cent. of earnings.

Lord Trefgarne

On the assumptions used in Cmnd. 8742—Report by the Government Actuary on the draft of the Social Security (Contributions, Re-rating) Order 1982, and on the bases that:

  1. (i) contracted-out employees and their employers would continue to pay at reduced rates on those earnings falling within the lower and upper earnings limits, and
  2. (ii) the abolitions would also apply to the employers contributions;
the effects on Government revenue, including contributions from the public sector, would be:
  1. (a) an increase of about £310 million;
  2. (b) an increase of about £1,080 million;
  3. (c) a loss of about £200 million.