§ Mr. Kirkwood
To ask the Secretary of State for State for Social Security if he will estimate the annual income to the Exchequer of removing the lower earnings limit on employer contributions to national insurance contributions; and on what basis he estimates this sum. 83W
§ Mr. Arbuthnot
If employers were to pay contributions on earnings below the lower earnings limit, the additional income would be an estimated £150 million in a full year. This figure was derived using information from the April 1993 new earnings survey, which was then adjusted to take account of the latest earnings estimates for 1995–96. The contribution rate is assumed to be 3 per cent. which is the rate currently payable by employers in respect of earnings just above the lower earnings limit.
Government Actuary's Department.