§ 22. Mr. Rogers
To ask the Secretary of State for Social Security what effect the current increase in earnings will have on national insurance fund contributions.
§ Mr. Scott
We expect that the current increase in earnings will increase the income of the national insurance fund by about £500 million compared with estimates published last autumn. The Budget measures on national insurance contributions and the abolition of earnings rule will cost the fund a net £1 billion in 1989–90. The national insurance fund's income from contributions is expected to be about £28.2 billion in the current year.
46. Mr. Alan W. Williams
To ask the Secretary of State for Social Security what is the percentage increase in contributions to the national insurance fund anticipated in the current year as a result of the increase in earnings.
§ Mr. Peter Lloyd
The percentage increase in receipts from national insurance contributions to the national insurance fund resulting from the expected increase of earnings in 1989–90 is expected to be 9 per cent. in cash terms. This estimate is based on receipts net of statutory sick pay, statutory maternity pay and personal pension rebates, but includes premiums paid to the state scheme by occupational pension schemes. It also take account of the changes announced by my right hon. Friend the Chancellor in his Budget speech.