National Insurance Contributions (Hansard, 22 July 1985)

§ Sir Brandon Rhys Williams
asked the Secretary of State for Social Services if he will estimate the number of people likely to be affected under the proposed new national insurance contribution arrangements, at £55 and £90, when overtime or bonus payments take their wages just over the new limits.
398W
whereas the corresponding RDS figure for 1978 is 47,000—and the reclassification of units since 1978 is the major factor in the difference.
This means that I do not regard the movements in the overall employment figures in the table as at all representative of the trend in employment in the electronics sector for Scotland. Later this year I hope to have estimates based on units classified according to their activities at the relevant times.

§ Mr. Whitney
The information is not available in the form requested.
The latest figures for earnings on which national insurance contributions have been paid relate to the 1982–83 tax year. In that year 189,600 men and 271,900 women paid contributions on annual earnings in the range £2,700–£3,000 (weekly equivalent £51.92–£57.69) and 382,800 men and 279,500 women paid contributions on annual earnings in the range £4,500–£4,799 (weekly equivalent £86.54–£92.29). It is not known how many of these people received bonus or overtime payments.
These 1982–83 figures should be used with caution to produce any current estimate on the lines sought by my hon. Friend. Current earnings will be different because of the general upward trend. Moreover, because the Department does not record actual earnings the figures quoted are national earnings calculated from the record of contributions paid. This calculation does not produce an accurate earnings figure for each person.
The steps in liability at £55 and £90 per week under the proposed new arrangements are small—both in absolute 399W terms and in relation to the existing "cliff edge" of liability at the lower earnings limit (£35.50): modest pay rises at these two steps will result in net increases in take home pay. All employees earning under £90 per week will be better off than at present—some 4. million.

§ Mr. Austin Mitchell
asked the Secretary of State for Social Services whether he will publish in the Official Report a table showing the forecast payment of contributions to national insurance in 1985 by employers, employees and the self-employed; and if he will provide separate figures for the manufacturing sector.

§ Mr. Whitney
The Government Actuary's estimates for 1985–86 are in the table. No separate figures for the manufacturing sector are available.

£ million

Class I (employed)

Primary (employees) 10,768

Secondary (employers) 12,158

Class II (self-employed) 680

§ Mr. Austin Mitchell
asked the Secretary of State for Social Services what revenue is brought in by the reduced rate contributions to national insurance.

§ Mr. Whitney
The Government Actuary estimates that the class 1 primary (employees) receipts during 1985–86 from married women and widows who have opted to pay reduced rate contributions will be around £275 million.

§ Mr. Austin Mitchell
asked the Secretary of State for Social Services what revenue is brought in by (a) the employee's national insurance contribution and (b) the employer's contribution in a full financial year.

§ Mr. Whitney
The Government Actuary's estimates of class 1 receipts during 1985–86 are:—

£ million

Class 1 primary (employees) 10,768

Class 1 secondary (employers) ^*12,158

^*This figure does not take account of recoveries of statutory sick pay by employers.

	£ million
Class I (employed)
Primary (employees)	10,768
Secondary (employers)	12,158
Class II (self-employed)	680

	£ million
Class 1 primary (employees)	10,768
Class 1 secondary (employers)	^*12,158
^*This figure does not take account of recoveries of statutory sick pay by employers.