HC Deb 13 February 1997 vol 290 c273W
Sir Colin Shepherd

To ask the Secretary of State for Social Security what estimate he has made of the revenue which will be generated by the removal of the cap on national insurance contributions. [14173]

Mr. Heald

If the upper earnings limit on employees' class 1 contributions and the upper profits limit on self-employed class 4 contributions were removed, it is estimated that an extra £3.75 billion would be collected in a full year.1

Note: 1 The estimate is based on the assumption that the current 10 per cent. class 1 contribution rate would apply to earnings above the upper earnings limit and that the current 6 per cent. class 4 contribution rate would apply to profits above the upper profits limit.