National Insurance

HC Deb 11 April 1989 vol 150 cc504-5W

Mr. Gordon Brown

To ask the Secretary of State for Social Security if he will publish in theOfficial Report a table showing his estimates of the number of male and female employees expected to pay national insurance contributions (a) in a full year under the April 1989 regime, and (b) in a full year under the proposed October 1989 regime, together with the forecast number of employees and the amount of their contributions at each rate; and if he will divide the figures between those contracted-in and those contracted-out.

Mr. Peter Lloyd

[holding answer 7 April 1989]: The information is as follows:

Average number of Class 1 contributors for thefull year 1989–90 under both April 1989 and October 1989 regimes (millions)
Rate per cent.	Male	Female	Total
STANDARD RATE
Contracted-in
5	0.3	1.4	1.7
7	0.5	1.3	1.8
9	3.8	1.7	5.5
Total	4.6	4.4	9.0
Contracted-out
5	—	0.1	0.1
7	0.1	0.2	0.3
9	6.8	2.8	9.6
Total	6.9	3.1	10.0
Total standard rate	11.5	7.5	19.0
REDUCED RATE (MARRIED WOMEN)
Contracted-in
3.85	—	0.5	0.5
Contracted-out
3.85	—	0.3	0.3
Total reduced rate	—	0.8	0.8

Rate per cent.	Male	Female	Total
Total Class 1 contributors	11.5	8.3	19.8

Estimated Full-year yield under the April 1989 regime (£ billions)
Rate per cent.	Male	Female	Total
STANDARD RATE
Contracted-in
5	—	0.2	0.2
7	0.2	0.4	0.6
9	3.9	1.3	5.2
Total	4.1	1.9	6.0
Contracted-out
5	—	—	—
7	—	0.1	0.1
9	6.5	2.2	8.7
Total	6.5	2.3	8.8
Total standard rate	10.6	4.2	14.8
REDUCED RATE (MARRIED WOMEN)
Contracted-in
3.85	—	0.1	0.1
Contracted-out
3.85	—	0.1	0.1
Total reduced rate	—	0.2	0.2
Total Class 1 contributions	10.6	4.4	15.0

Contracted-out yields are net of the 2 per cent. incentive payments which are payable under the 1986 Social Security Act.

Estimated Full-year yield under the October 1989 regime (£ billions)
	Male	Female	Total
STANDARD RATE1
Contracted-in	3.4	1.5	4.9
Contracted-out2	5.5	1.9	7.4
Total standard rate	8.9	3.4	12.3
REDUCED RATE
Contracted-in	—	0.1	0.1
Contracted-out	—	0.1	0.1
Total reduced rate	—	0.2	0.2
Total Class 1 contributors	8.9	3.6	12.5
1 All Class 1 contributors paying NIC at the standard rate will pay 2 per cent. of the lower earnings limit and 9 per cent. of earnings in excess of the lower earnings limit (or 7 per cent. if contracted-out) up to the upper earnings limit.
2 Contracted-out yields are net of the 2 per cent. incentive payments which are payable under the 1986 Social Security Act.