HC Deb 27 June 1985 vol 81 cc480-1W
Mr. Philip Oppenheim

asked the Secretary of State for Social Services if he has any plans to change the system of national insurance contributions so that contributions are paid alike by part-time and full-time workers.

Mr. Whitney

National insurance contributions are already paid alike by those part-time and full-time workers whose earnings reach the lower earnings limit (currently £35.50 per week).

Mr. Phillip Oppenheim

asked the Secretary of State for Social Services if his Department is aware of any studies on the system of national insurance contributions, and its effect on full-time and part-time employment.

Mr. Whitney

The following recent studies seeking to forecast the economic effects of the Budget have been concerned in part with the proposals to restructure National Insurance contributions:

  1. (a) London Business School Economic Outlook 1984–88 Vol. 9, No. 6 (March 1985);
  2. (b) University of Liverpool Quarterly Economic Bulletin Vol. 6, No. 1 Budget Supplement (March 1985);
  3. (c) C. Johnson, "NICs make news", Lloyds Bank Economic Bulletin (April 1985);
  4. (d) E. Davis and A. Dilmot "The restructuring of national insurance contributions in the 1985 budget", The Fiscal Studies (May 1985).

In addition, we are aware of the following studies which look, in part, at the system of national insurance contributions:

  1. (a) R. Layard and S. Nickell, "The Causes of British Unemployment", National Institute Economic Review, February 1985;
  2. (b) P. Minford, "Unemployment: Cause and Cure", London, Martin Robertson, 1983;
  3. (c) C. Craig and F. Wilkinson, "Pay and Employment in Four Retail Trades", Department of Employment Research Paper No. 51, 1985;
  4. (d) P. Hart and C. Trinder, "Employment Protection, National Insurance Income Tax and Youth Unemployment", National Institute for Economic and Social Research, Working Paper, 1984;
  5. (e) O. Robinson and J. Wallace, "Part-Time Employment and Sex Discrimination Legislation", Department of Employment Research Paper No. 43.

However, none of these is concerned with the particular effects on full-time and part-time employment.