§ Mr. Raisonasked the Secretary of State for Social Services what is the estimated amount to be raised from the additional contribution to be levied from the self-employed under the Social Security Amendment Bill.
§ Mr. O'MalleyThe Social Security Amendment Bill does not alter the man's class 2—self-employed, flat-rate—contribution rate fixed by the National Insurance Act 1974; and the increase in the class 2 rates for women and those under 18 will have no significant yield. The pegging of the man's class 2 rate at the 1974 Act level will help those self-employed who have low earnings, while the increase in the rate of class 4—self-employed, earnings-related—contributions, which are levied on profits and gains in the range £1,600 to £3,600 per annum, will result in higher total contributions from the better paid self-employed. The increase from 5 per cent. to 8 per cent. in the rate of class 4 contributions will yield about £21 million a year on the basis of July 1974 earnings levels, or £25 million including Treasury supplement.