HC Deb 23 July 1980 vol 989 c283W
Mr. Bevan

asked the Secretary of State for Social Services whether his Department's contribution requirement for a self-employed person is subsidised in any way from the employers' contribution fund.

Mrs. Chalker

There is not an employer's contribution fund. After deduction of the national insurance surcharge and the appropriate allocations to the National Health Service, the redundancy fund and maternity pay fund, all national insurance contributions are paid into the national insurance fund from which contributory and industrial injuries benefit are paid. The class 2 and class 4 contribution rates for the self-employed are fixed at levels calculated to provide sufficient income to finance the benefits to which they are entitled.

Mr. Bevan

asked the Secretary of State for Social Services what are the reasons why a self-employed person is required to pay nearly three times the amount of overall national insurance contribution as that paid by an employee on the same income.

Mrs. Chalker

There are no circumstances in which a self-employed person is required to pay nearly three times the amount of national insurance contribution payable by an employee with the same earnings.