National Insurance (Hansard, 27 February 1997)

§ Ms Corston
To ask the Secretary of State for Social Security what is his estimate of the total amount paid in national insurance contributions, at 1995–96 prices, and as a percentage, by employees with(a) more than 200 per cent., (b) between 150 per cent. and 200 per 309W cent., (c) between 100 per cent. and 150 per cent., (d) between 50 per cent. and 100 per cent. and (e) below 50 per cent. of the average earnings of men and women combined in (i) 1979–80, (ii) 1989–90, (iii) 1994–95 and (iv) 1995–96; and what was the distribution of total earnings in these years between these groups. [13879]

§ Mr. Heald
The information is not available in the format requested and could be provided only at disproportionate cost. Such information as is available is in the table.

1989–90 1994–95 1995–96

Class 1 employee contributions (£ billion)^1,2 14.2 17.9 18.9

Percentages in each band

(a) More than 200 per cent, of average earnings³ 11.3 12.5 12.8

(b) Between 150 per cent, and 200 per cent, of average earnings³ 16.5 17.4 17.7

(c) Between 100 per cent, and 150 per cent, of average earnings³ 34.8 34.1 34.2

(d) Between 50 per cent, and 100 per cent, of average earnings³ 32.3 31.1 30.5

(e) Below 50 per cent, of average earnings³ 5.1 4.9 4.8

Distribution of earnings for each band⁴

(a) More than 200 per cent, of average earnings³ 18.6 19.6 20.3

(b) Between 150 per cent, and 200 per cent, of average earnings³ 16.3 16.9 16.8

(c) Between 100 per cent, and 150 per cent, of average earnings³ 30.6 29.6 28.9

(d) Between 50 per cent, and 100 per cent, of average earnings³ 28.3 27.5 27.5

(e) Below 50 per cent, of average earnings³ 6.2 6.4 6.5

Notes:
¹Source: Government Actuary's Department.
²Excludes contributions paid by HM forces.
³Average earnings of both full-time and part-time employees on adult rates whose pay for the survey period is unaffected by absence: £224.92 for 1989–90, £283.49 for 1994–95 and £294.33 for 1995–96.
⁴Source: Office for National Statistics.

§ Mr. Richards
To ask the Secretary of State for Social Security if he will estimate the revenue consequences of abolishing the upper limit on employee national insurance contributions in Wales. [17870]

§ Mr. Heald
The information is not available in the format requested. Such information as is available is as follows.
If the limit were removed for Great Britain, it is estimated that the employees affected would pay an extra£3.3 billion¹ in contributions in a full year.
Note:
¹ Assumes that the current 10 per cent. contributions rate would apply to earnings above the upper earnings limit.

	1989–90	1994–95	1995–96
Class 1 employee contributions (£ billion)^1,2	14.2	17.9	18.9
Percentages in each band
(a) More than 200 per cent, of average earnings³	11.3	12.5	12.8
(b) Between 150 per cent, and 200 per cent, of average earnings³	16.5	17.4	17.7
(c) Between 100 per cent, and 150 per cent, of average earnings³	34.8	34.1	34.2
(d) Between 50 per cent, and 100 per cent, of average earnings³	32.3	31.1	30.5
(e) Below 50 per cent, of average earnings³	5.1	4.9	4.8
Distribution of earnings for each band⁴
(a) More than 200 per cent, of average earnings³	18.6	19.6	20.3
(b) Between 150 per cent, and 200 per cent, of average earnings³	16.3	16.9	16.8
(c) Between 100 per cent, and 150 per cent, of average earnings³	30.6	29.6	28.9
(d) Between 50 per cent, and 100 per cent, of average earnings³	28.3	27.5	27.5
(e) Below 50 per cent, of average earnings³	6.2	6.4	6.5