HC Deb 11 February 1999 vol 325 cc386-7W
Ms Rosie Winterton

To ask the Secretary of State for Social Security if he will estimate the additional income to public funds if(a) class 2 contributions and (b) class 4 contributions were levied at the same rate as class 1 contributions. [70427]

Mr. Timms

If the self-employed contributed at the combined employee and employer Class 1 rate, the estimated additional contribution revenue would be £5.1 billion for the year 1999–2000.

Ms Rosie Winterton

To ask the Secretary of State for Social Security how many persons made national insurance(a) class 2 contributions and (b) class 4 contributions in each of the last five fiscal years. [70429]

Mr. Timms

The information is not available in the format requested. Such information as is available is in the table.

Million
Fiscal year Class 2 contributors1,3 Class 4 contributors2,3
1991–92 2.4 2.1
1992–93 2.3 2.0
1993–94 2.4 2.0
1994–95 2.4 2.0
1995–96 2.3 2.0
1996–97 1.9
1 Figures for the number of people paying Class 2 contributions are taken from the Lifetime Labour Market database which contains a 1 per cent, sample of the National Insurance Recording System taken at February 1997. Information about the total number of Class 2 contributors is not yet available for 1996–97.
2 The figures for Class 4 contributors are based on estimates derived from an analysis of income reported to the Inland Revenue. The information is based on samples of around 25,000 self-employed individuals for each year.
3 Figures have been rounded to the nearest hundred thousand.

Ms Rosie Winterton

To ask the Secretary of State for Social Security if he will estimate the cost of allowing national insurance class 4 contributors to be entitled to(a) Incapacity Benefit and (b) retirement pension. [70433]

Mr. Timms

Class 4 National Insurance contributions are payable in addition to Class 2 contributions on profits from self-employment above a certain level. The self-employed can already qualify for Incapacity Benefit and basic State Retirement Pension through payment of Class 2 contributions.

Ms Rosie Winterton

To ask the Secretary of State for Social Security what were the total receipts from(a) class 2 contributions and (b) class 4 contributions in each of the last five fiscal years expressed (i) in cash terms and (ii) at September 1998 prices. [70428]

Mr. Timms

The information is in the table.

Total receipts of class 2 and class 4 national insurance contributions
GB £ million
Cash terms September 1998 prices
Year Class 2 Class 4 Class 2 Class 4
1993–94 652 749 757 870
1994–95 663 764 749 863
1995–96 681 803 746 879
1996–97 711 900 761 962
1997–98 720 977 745 1,011