HC Deb 20 December 1989 vol 164 c301W
Mr. Simon Hughes

To ask the Secretary of State for Social Security if he will estimate(a) the cost of changing the national insurance threshold into a tax allowance in 1990–91 and (b) the savings of abolishing the national insurance ceiling in 1990–91.

Mrs. Gillian Shephard

Using the rates expected to apply in the 1990–91 year it is estimated that removing employees' liability for national insurance contributions on the first £46 of weekly earnings (that is earnings up to the lower earnings limit) would cost about £0.9 billion in a full year. If the upper earnings limit for employees' contributions were to be abolished, the additional income would be about £2.3 billion.