HC Deb 15 November 1974 vol 881 cc274-5W
Mr. Winterton

asked the Secretary of State for Social Services whether she has received a letter from the President of the National Federation of Self Employed in connection with the Government's proposal to increase the national health insurance stamp by £160 per annum for the self-employed; and what answer she has given.

Mr. O'Malley

We have received two letters, to which I have replied today. I have explained, as I did during the debate on the Second Reading of the Social Security Amendment Bill on 6th November—[Vol 880, c. 1111–1126.]— that increased benefits have to be paid for by increased contributions; that we have maintained the same ratio between class 1 contributions and those of the self-employed as was set out in the Social Security Act 1973; and that we are ensuring that from April 1975 the higher contributions needed will be borne by the higher-earning employees and their employers and the higher-earning self-employed. Only the self-employed with profits or gains of £3,600 a year or more will pay £160 a year in additional contributions. Those with profits or gains up to £1,600 a year will pay no more than they do now.