§ Lord Monsonasked Her Majesty's Government:
What would be the cost to the Exchequer if employees' National Insurance contributions (a) were reduced from 9 per cent. to 8 per cent. of gross earnings, or (b) remained at 9 per cent. of gross earnings, but applied only to each £1 earned in excess of the first £35.50 earned each week.
§ The Parliamentary Under-Secretary of State, Department of Health and Social Security (Lord Glenarthur)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 loss to the National Insurance Fund from reducing the primary (employees) contribution rate by 1 per cent. would be £1,360 million in 1985–86. The loss, were liability for contributions to be removed on all weekly earnings below £35.50, would be £3 billion.