§ Mr. Dewar
To ask the Secretary of State for Social Security what would be the effect on Treasury revenue in 1994–95, and in a full year, of(a) abolishing the 2 per cent. national insurance contribution, (b) raising the lower earnings limit for the level of the personal tax allowance, (c) both (a) and (b) combined, (d) raising the national insurance ceiling to £27,145 and (e) abolishing the ceiling for national insurance contributions.
§ Mr. Hague
The information is in the table.
Cost(-)/yield(+) 1994–95 (£ billion) In year Full year (a) -0.95 -1.05 (b) -0.55 -0.75 (c) -1 65 -1.95 (d) +0.75 +0.7 (e) +3.15 +3.5
1 The reduction in the full year yield at (d) results from the lag in payment of rebates in respect of personal pensions.
2 The reply at (e) assumes that an upper earnings limit would remain for the purpose of calculating contracted-out rebates.