HL Deb 13 June 1985 vol 464 cc1471-2WA
Lord Banks

asked Her Majesty's Government:

By what amount the gross yield to the Exchequer of requiring employers and employees now contracted-out to pay National Insurance contributions at the contracted-in rate would be reduced by the extra employers' National Insurance contributions which would then have to be paid out of public funds.

The Parliamentary Under-Secretary of State, Department of Health and Social Security (Baroness Trumpington)

The Government Actuary estimates that, in relation to the current national insurance contribution structure, were the contracted-out rate to be abolished, the extra secondary contributions to be met from public funds would amount to around £600 million.

This calculation assumes that the gross contribution rate would be reduced to maintain contribution revenue at the current level, and that half that reduction in rate would apply to employers' contributions. It also assumes that the amount of Treasury Supplement would remain unchanged.