§ Dr. McDonald
asked the Secretary of State for Social Services if he will estimate the revenue effect of abolishing the upper ceiling on payments to the National Insurance Fund for employee contributions.
§ Mr. Major
If the upper earnings limit for employee's class 1 national insurance contributions were to be abolished in 1986–87, but the ceiling retained for the contracted-out rebate, the additional receipts to the national insurance fund that year would be £610 million. This would attract an extra £55 million of Treasury supplement.
These figures are based on the same assumptions as Cmnd. 9672—the report by the Government Actuary on the draft of the Social Security (Contributions, Re-rating) Order 1985.