HC Deb 22 December 1982 vol 34 cc586-7W
Mr. Hordern

asked the Secretary of State for Social Services how much extra revenue would be raised from employers by abolishing the upper limit on national insurance contributions; and whether he will give the comparable figures for employees and the self-employed.

Mr. Rossi

On the assumptions used in Cmnd. 8742—report by the Government Actuary on the draft of the Social Security (Contributions, Re-rating) Order 1982—and on the basis that contracted-out employees and their employers would continue to pay at reduced rates within the lower and upper earnings limits, if the upper ceilings for class 1 and class 4 contributions were abolished from April 1983 the extra revenue which would be received in the tax year 1983–84 would be approximately as follows:

£ million
From employers (including public sector) 620
From employees (including public sector) 460
From the self-employed 60
1,140

Contributions for a full year would be rather higher, since some contributions for any one year are received in following years.