§ Mr. Austin Mitchellasked the Chancellor of the Exchequer what is the annual cost of the administration by the Department of Health and Social Security of national insurance in the latest available year; and what savings could be made by reforming the tax system to amalgamate the collection of income tax and national insurance employees' contributions.
§ Mr. Peter ReesThe cost to the national insurance fund in 1979–80 was £442 million. This represents the whole cost of administration, not just that attributable to collections of contributions. I am not sure what the hon. Member has in mind in the second part of his question. National insurance employees' contribution are already collected with income tax. Further integration would depend on changes in the underlying national insurance and/or tax systems, and the administrative effects depend on the nature of the changes envisaged.