§ Mrs. Wiseasked the Secretary of State for Prices and Consumer Protection what is her estimate, expressed in money terms, of the impact on consumers of increased prices which will be permitted because of the proposed increase in the employer's share of the national insurance contribution.
§ Mr. MaclennanFirms will start to pay the higher contributions in May 1977, but the effects will take some time to work through into retail prices. If the full cost were passed on, the effect by early 1978 would be rather less than £1 billion.
§ Mrs. Wiseasked the Secretary of State for Prices and Consumer Protection whether employers will be allowed to pass on to consumers through increased prices the whole of the proposed increase in the employer's share of the national insurance contributions; and what guidance she will be giving to the Price Commission.
§ Mr. MaclennanYes, increases arising from employer's national insurance contributions are allowable cost increases under paragraphs 32 and 35 of the Price Code. The code constitutes guidance for the Price Commission as well as for firms.