§ Mr. SalmondTo ask the Chancellor of the Exchequer if he will estimate additional revenues that would arise in(a) the United Kingdom and (b) Scotland from a policy of (i) abolishing the upper limit on employees' national insurance contributions, (ii) raising the limit to £50,000, (iii) raising the limit to £100,000 and (iv) charging a rate of (A) 5 per cent., (B) 10 per cent., and (C) 15 per cent. on income between the current upper limit and (X) £50,000, (Y) £100,000 and (Z) £250,000. [39328]
§ Dawn Primarolo[holding answer 28 February 2002]: This information is not readily available for Scotland and could be provided only at disproportionate cost. Available estimates for the UK, provided by the Government's Actuary's Department (GAD), are shown in the table.
Estimated full-year effects—UK 2002-03(£billion) Abolishing the Upper Earnings Limit (UEL) for employees +3.35 Raising the UEL to £50,000 per year +2.05 Raising the UEL to £100,000 per year +3.00 AX 5 per cent, between UEL and £50,000 per year1 +1.75 AY 5 per cent, between UEL and £100,000 per year1 +2.55 AZ 5 per cent, between UEL and £250,000 per year1 +2.75 BX 10 per cent, between UEL and £50,000 per year1 +3.50 BY 10 per cent, between UEL and £100,000 per year1 +5.10 BZ 10 per cent, between UEL and £250,000 per year1 +5.55 CX 15 per cent, between UEL and £250,000 per year1 +5.25 CY 15 per cent, between UEL and £250,000 per year1 +7.65 CZ 15 per cent, between UEL and £250,000 per year1 +8.30 Note1: Assuming UEL for contracted-out rebates will remain unchanged, with a rate of 5/10/15 per cent. being charged on earnings (whether or not the person is contracted-out) between the UEL and the specified limit.