§ Mr. HunterTo ask the Secretary of State for Social Security how many employers make national insurance contributions; and what would be the yield from removing the present cap on employers' contributions. [28311]
§ Mr. HealdThere is no upper earnings limit on the payment of national insurance contributions by employers: the limit applies only to employees. It is estimated that in any one week in the year 1996–97 some 18.6 million employees will pay contributions and that of those 3.2 million will have earnings above the upper earnings limit.
If the upper earnings limit on employees' contributions were removed, it is estimated that an extra £3.25 billion would be collected in a full year.1
Note:
1Assumes that the current 10 per cent. contribution rate would apply to earnings above the upper earnings limit.