HC Deb 17 March 1987 vol 112 cc477-8W
Mr. Austin Mitchell

asked the Secretary of State for Social Services whether he will publish in the Official Reporta table showing the number of men and women paying national insurance contributions at the full rate and at each other rate, together with the estimated cost in each case of exempting the first £2,335 of income in calculating the employee's contribution liability.

Mr. Major

The information on the average number of class 1 contributors in 1986–87 is as follows:

Great Britain: Millions
Employees' not contracted out Contribution Rates Per cent. Males Females Total
5.00 0.3 1.1 1.4
7.00 0.6 1.5 2.1
9.00 10.5 3.6 14.1
Optants 3.85 1.2 1.2
Total 11.4 7.4 18.8

The estimated reduction in yield in a full year from exempting the first £2,335 of income from employees' class 1 contributions is as follows:

Employees' Contribution Rates £ billion (Great Britain) (1986–87)
Per cent
5.00 0.2
7.00 0.3
9.00 2.9
Optants 3.85 0.1
Total 3.5

Notes:

In assessing the effect of exempting the first £2,335 of income from employees' contributions, it has been assumed that employees would not pay primary class 1 contributions on the first £44.75 of their weekly earnings.

In deriving these estimates, it has been assumed that the contracted-out rebate would apply to the contribution rates of contracted-out employees on earnings between £44.75 and £285 per week (the upper earnings limit).

All estimates are based on the assumptions used in the report by the Government Actuary on the drafts of the Social Security Benefits Up-rating (No. 2) Order 1986 and the Social Security (Contributions, Re-rating) (No. 2) Order 1986 (Cm 24).