HC Deb 04 December 1984 vol 69 cc167-8W
Mr. Forman

asked the Secretary of State for Social Services what would be the net cost to public funds of raising the lower earnings limit of national insurance contributions to £60 a week; and what would be the

Employers with fewer than 6 employees Employers with 6 or more employees
In the 4 weeks ending (1984) No. of individual cases checked underpaid overpaid underpaid overpaid
10 April 3,933 364 527 13,099 841 1,198
8 May 2,521 253 300 7,517 542 696
5 June 3,188 291 375 10,225 642 776
3 July 3,179 312 359 9,655 832 812
31 July 2,322 242 271 6,715 530 578
28 August 1,326 114 151 3,554 320 312

Mr. Ashdown

asked the Secretary of State for Social Services if he will set out his reasons for extending the scope of coverage for sickness payments from eight weeks to 28 weeks effective from April 1986 as announced in the autumn statement.

Mr. Whitney

I refer the hon. Member to my right hon. Friend's opening statement on 26 November 1984 at column 676 when moving Second Reading of the Social Security Bill.

estimated net gain to public funds of raising the upper earnings limit of national insurance contributions to £730 a week.

Mr. Whitney

On the assumptions set out in the Government Actuary's report on the draft of the Social Security (Contributions Re-rating) (No. 2) Order 1984 (Cmnd. 9386) the net loss to the national insurance fund from raising the lower earnings limit to £60 a week would be £100 million in a full year at 1984–85 rates; the net gain to the fund from raising the upper earning limit to £730 a week would be £1,325 million (assuming the upper profits level for class 4 contributions remained unchanged).

Mr. Ashdown

asked the Secretary of State for Social Services when he intends to introduce exemption for employers from paying national insurance contributions on sickness payments as announced in the autumn statement.

Mr. Whitney

An amendment will be put down for discussion in Committee on the Social Security Bill to provide for employers to be compensated for their share of national insurance contributions payable on payments of statutory sick pay from 6 April 1985.