§ Mr. DawsonTo ask the Secretary of State for Social Security what would be the effect on Treasury revenue(a) in 1998–99, and (b) in a full year, of raising the national insurance ceiling to the same level as the higher rate tax band. [52916]
§ Mr. DenhamEstimated additional revenue of some £1.4 billion would be raised in 1998–99 if the Upper Earnings Limit on employees' Class 1 contributions were increased from its present level to the same level as the higher rate tax band. The additional revenue in a full year would be £1.55 billion.
The figures assume that the current 10 per cent. Class 1 contribution rate would apply to earnings above the present Upper Earnings Limit and that the current Upper Earnings Limit would remain in place for the calculation of employee and employer contracted-out rebates.
Source:
Government Actuary's Department.