§ Mr. BercowTo ask the Chancellor of the Exchequer what assessment he has made of the effects of national insurance rates on the supply of labour. [14388]
§ Dawn PrimaroloReducing national insurance contributions for those on low incomes forms part of the Government's strategy to make work pay. As a result of reforms since 1997, around 1 million lower paid employees have been taken out of having to pay NICs altogether. Cautious estimates show that labour supply has increased by around 160,000 people as a result of the entire package of measures to make work pay since 1997, including the reductions in income tax and national insurance contributions as well as working families tax credit and disabled persons tax credit.