HC Deb 18 November 1985 vol 87 cc79-80W
Mr. Terry Lewis

asked the Secretary of State for Social Services what was the number of persons excepted from paying national insurance contributions from self-employment due to having small earnings, in each of the years 1979–80, 1980–81, 1981–82, 1982–83, 1983–84, 1984–85 and the current year to date.

Mr. Major

A count is made annually of the number of small earnings exceptions (SEEs) current in the last week of the contribution year. The latest available figures are:

Year No. of SEEs
1979–80 27,500
1980–81 29,500
1981–82 27,100
1982–83 39,100

Due to the industrial action at the Department's Newcastle computer centre last year, the figures for 1983–84 and 1984–85 are not available.

Mr. Yeo

asked the Secretary of State for Social Services if he will estimate the direct revenue effect in 1986–87 of changing the rates of class 1 national insurance contributions in all earnings bands by one percentage point; and if he will show separately the effect on employers' and employees' contributions.

Mr. Major

On the assumptions set out in his report on the draft of the Social Security (Contributions, Re-rating) Order 1985 (Cmnd. 9672) the Government Actuary's estimates of the revenue effect of a one per cent. change in both the primary and secondary contribution rates are:

£ million
Employees' (primary) contributions Employers' (secondary) contributions
Band 1 30 40
Band 2 75 85
Band 3 1,190 225
Band 4 — 1085

Mr. Yeo

asked the Secretary of State for Social Services what assumptions were used by the Government

1983 1984 1985
Supplementary Benefits
Order books 2,750 2,193 1,850
Girocheques 3,635 3,003 3,024
Contributory Benefits
Short term benefit (sickness and invalidity benefit, maternity allowance and severe disablement benefit)
Order books 352 407 621
Girocheques 4,055 3,544 3,832

Actuary in preparing the autumn statement 1985 about the numbers of class 1 national insurance contributors in each of the earnings bands proposed for 1986–87, their aggregate earnings and about the proportion that are contracted out of the state earnings related pension scheme.

Mr. Major

I shall let my hon. Friend have a reply as soon as possible.