§ Ms. Clare Shortasked the Secretary of State for Social Services if he will make a statement on the recommendation in the recent report from the west midlands low pay unit, a copy of which has been sent to him, about the effect of the eligibility conditions for national insurance contributions on some groups of claimants; and if he will consider seeking to enable workers in this situation to have at least some of their contributions refunded.
§ Mr. NewtonRefunds of contributions can be made only if the contributions were paid in error. Under the present arrangements, liability for national insurance contributions is assessed at the time earnings are paid. The contributions paid in any particlar week or month are not affected by any subsequent earnings, or lack of earnings. As my right hon. Friend told the House on 27 November, we are looking at the structure of national insurance, including the lower and upper earnings limits.