§ Dr. McDonaldasked 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. MajorIf 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.