§ Mr. Luceasked the Secretary of State for Social Services what are (a) the number 108W of self-employed to be affected by class 2 of the national insurance contributions of the National Insurance (Amendment) Bill, (b) the number of people who are employees of self-employed people in the above category, and (c) the number of people known to be self-employed in 1965, 1970, 1972 and 1974, respectively.
§ Mr. O'MalleyThere were 1.41 million people paying—or being excused—class 2 contributions in Great Britain in 1965, 1.59 million in 1970, 1.61 million in 1972 and probably a similar number in 1974. About 100,000 office holders are expected to move from class 2 to class 1 next April, from which date about 1.5 million people are expected, on average, to be paying —or to be excused—class 2 contributions. It is not known how many people will be employed by such contributors.
§ Mr. Luceasked the Secretary of State for Social Service what were (a) the percentage ratio of national insurance contributions of class 2—self-employed—to class 1 contributions in 1950, 1960, 1970 and under the proposals of the Social Security (Amendment) Bill, and, (b) the percentage ratio of national insurance benefits obtained by class 2—self-employed—contribution to class 1 national insurance benefits in 1950, 1960, 1970, respectively, and under the proposals of the Social Security (Amendment) Bill.
§ Mr. O'MalleyThe national insurance element in the man's class 2 contribution was about 65 per cent. of the national insurance and industrial injuries elements in the combined—employer and employee —class 1 contribution for a man in 1950, about 62 per cent. in 1960, and, in 1970, for a man earning £2805 a week—average earnings for a male adult worker in the manufacturing and principal non-manufacturing industries in October 1970 —about 42 per cent. for a contracted-out employee and about 35 per cent. otherwise. From April 1975 the national insurance element in the contributions of a self-employed man will be about 57 per cent. where reckonable earnings lie above £1,600 a year, and higher for earnings below that level. The expenditure on those national insurance benefits to which the self-employed are entitled was 92 per cent. of the expenditure on all national insurance and industrial injuries benefits in 1950–51, 92 per cent. in 1960–61, 87 109W per cent. in 1970–71, and 89 per cent. for the last complete financial year—1973–74. It is estimated to be 90 per cent. in 1975–76.
§ Mr. Luceasked the Secretary of State for Social Services if she will list the categories of self-employed by type of job who are affected by class 2 and /or 4 of national insurance contributions under the Social Security (Amendment) Bill.
§ Mr. O'MalleySelf-employment occurs in practically every industry and occupation.