§ Miss Richardsonasked the Chancellor of the Exchequer what would be the consequence to the national Insurance fund in 1981–82 of abolishing the earnings ceiling on national insurance contributions; and what would be the net gain to the fund assuming that the amount was increased by the standard Treasury supplement in both cases under the new rates announced on 24 November.
§ Mr. BiffenAbolition of the upper earnings limit would increase income to the national insurance fund in 1981–82 by about £680 million. Of this amount about £85 million would be attributable to the treasury supplement. These figures assume the retention of the upper earnings limit in calculating contracted-out contributions.