HC Deb 04 November 1975 vol 899 c101W
46. Sir George Young

asked the Secretary of State for Social Services when she intends to raise the upper earnings limit for national insurance contributions.

50. Mr. Frank Allaun

asked the Secretary of State for Social Services how much the National Insurance Fund would gain annually in income if the £69 a week ceiling on earnings-related contributions were ended; and if she will consider the proposal.

53. Mr. Gould

asked the Secretary of State for Social Services whether she will abolish the earnings limit on the payment of national insurance contributions.

Mr. O'Malley

The Social Security (Contributions, Re-rating) Order 1975, which was laid in draft on 23rd October, increases the upper earnings limit for employed persons' contributions from £69 to £95 a week with effect from 6th April 1976. If there were no upper earnings limit for national insurance contributions the additional income to the National Insurance Fund in respect of 1976–77 is estimated on the assumptions described in paragraph 6 of the Report by the Government Actuary on the draft Order (Cmnd. 6275) to be about £480 million, including Treasury Supplement. We do not propose to abolish the upper earnings limit for contributions: it is an essential feature of our new pensions scheme now enacted in the Social Security Pensions Act 1975.