§ Mr. Rookerasked the Secretary of State for Social Services what total amount of national insurance is collected on earnings below the lower earnings limit from (a) employees and (b) employers.
§ Dr. BoysonThe hon. Member will be aware that where earnings do not reach the lower earnings limit— LEL—no contributions are due from either employee or employer. However when earnings exceed the LEL, contributions are due on the whole of the earnings including that portion which falls below the LEL.
Using the assumptions for 1984–85 in Cmnd. 9202, it is estimated that of all contributions due for that tax year the amount payable in respect of this portion below the LEL would be as follows:
- (a) £2.8 billion from employees
- (b) £3.7 billion from employers
§ Mr. Rookerasked the Secretary of State for Social Services what extra amount of national insurance would be collected from (a) employees and (b) employers if the upper earnings limit was (i) abolished and (ii) increased by 50 per cent.
§ Dr. BoysonUsing the assumptions for 1984–85 in Cmnd. 9202, it is estimated that if the upper earnings limit —UEL—for class 1 contributions and the upper profits level—UPL—for class 4 contributions were to be:
- i. abolished — the additional revenue for that year, including the National Insurance surcharge, would be:
- £590 millions for employees
- £750 millions for employers
- £170 millions for self-employed
- ii. increased by 50 per cent. to £375 a week UEL: £19,500 a year UPL — the additional revenue for that year, including surcharge would be:
- £430 millions for employees
- £550 million for employers
- £80 millions for self-employed
Note. In these estimates it is assumed that there would be no change in the band of earnings on which contracted-out contributions would be payable.