§ Mr. W. Benyonasked the Secretary of State for Social Services whether he has yet completed his review of national insurance contributions for 1980–81.
§ Mr. PrenticeMy right hon. Friend has completed the annual review under section 120 of the Social Security Act 1975 and has today laid a draft order, the Social Security (Contributions, Re-Rating) Order 1979, which requires the approval of both Houses, setting out revised contribution rates and earnings and profits limits to take effect from 6 April 1980. My right hon. Friend has also laid regulations, the Social Security (Contributions) (Earnings Limits) Amendment Regulations 1979, which set out the new earnings limits for employees' and employers' contributions. A report of the Government Actuary—Cmnd. 7771—which accompanies the order sets out the effect of both the order and the regulations on the national insurance fund.
National insurance benefits were substantially increased earlier this month. This, together with the current assumption about the level of unemployment, must have an effect on the national insurance fund and make contribution in- 310W creases for 1980–81 necessary. It is proposed to raise the rate of contributions for employees and employers by 0.25 per cent. each. The increase for employers will be partly offset by a reduction in the employment protection element of their contribution by 0.05 per cent. which my right hon. Friend the Secretary of State for Employment will be proposing shortly. These and the other changes proposed are tabulated below.