HC Deb 16 July 1980 vol 988 cc590-1W
Mr. Alec Jones

asked the Secretary of State for Wales how much is spent per head by each county council in Wales on books and equipment for primary pupils and secondary pupils, respectively; and how this compares with 1974.

Mr. Michael Roberts

The information is as follows:

appointed to carry out the inquiry, was that the employers of Mr. Marenco were liable as secondary contributor to pay national insurance contributions in respect of Mr. Marenco on the whole of his earnings including that part which was attributed to a service charge.

The implications of this inquiry for employers and employees is that where an employer imposes a service charge and an amount attributed to the product of that charge is distributed by him or by any other person to his employees the sums so distributed must be taken into account as earnings for the purpose of assessing the liability of the employer and the employees for secondary and primary contributions under the Social Security Act. I am, however, aware of the serious practical difficulties which can arise for employers where the allocation of money attributed to a service charge is made by a third party— a tronc master—and I have sought the advice of the National Insurance Advisory Committee on this subject by means of putting to it a draft regulation which would have the effect of excluding payments derived from service charges from liability where the payment is not allocated by the employer. My right hon. Friend will decide whether to seek to change the law in this or any other way when he has received advice from the committee.