HC Deb 11 March 1992 vol 205 c525W
Sir Timothy Raison

To ask the Secretary of State for Social Security if he has any plans for technical adjustments to the system of national insurance contributions and credits which would assist people to qualify for contributory benefits.

Mr. Scott

We propose to lay regulations shortly which will amend the Social Security (Credits) Regulations 1975 to provide that people who receive a payment in lieu of notice or certain other compensatory payments will no longer be prevented from obtaining unemployment credits for the period covered by the compensatory payment.

This will assist people to qualify for contributory benefits by covering potential deficiencies in their contribution records.

We are also laying the Social Security (Contributions) Amendment (No. 5) Regulations 1992, which will further assist people to qualify for contributory benefits by the reallocation of national insurance contributions—NICs —paid in one tax year to another tax year.

Those who will benefit are employed earners who commence employment towards the end of the tax year and whose first payment of earnings from that employment is made in accordance with the employer's normal pay practice in the following tax year. If the NIC record in the first tax year is deficient for contributory benefits, the class 1—employed earners—NICs paid for the first payment of earnings can be treated as paid in respect of the tax year in which the employment began if that would enable the employee to satisfy the contribution conditions for benefit.