§ Ms. Clare Shortasked the Secretary of State for Social Services (1) if he will provide the fullest available information on the income levels of those paying class 4 national insurance contributions for each year since 1979;
(2) if he will provide the best available estimate of the numbers of individuals paying class 4 national insurance contributions for each year from 1957 to the latest available date.
§ Mr. MajorClass 4 contributions have been payable only since the 1975–76 tax year. Information on the actual number of class 4 contributors is not available but the estimates shown which have been derived from the Inland Revenue's income survey, give a good indication of the numbers involved. They will contain some over-statement—which is unlikely to be substantial—as they include those not liable to pay class 4 contributions because of being over retirement age or of being concurrently employed as employed earners and paying the maximum national insurance in class 1 and class 2 contributions.
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People with income from self-employment greater than the lower profits limit for Class 4 National Insurance Contributions (Thousands) (United Kingdom) 1975–76 1976–77 1977–78 1978–79 1979–80 1980–81 1981–82 1982–83 1983–84 1984–85 Lower profits limit for class 4 contributions £1,600 £1,600 £1,750 £2,000 £2,250 £2,650 £3,150 £3,450 £3,800 £3,950 Ranges of self-employment income Lower profits limit to £4,999 — — — — 800 639 468 401 315 280 £5,000 to £9,999 — — — — 351 429 491 593 684 788 £10,000 to £14,999 — — — — 129 111 125 141 178 222 £15,000 to £19,999 — — — — — 44 59 67 74 98 £20,000 to £24,999 — — — — 30 20 27 38 52 61 over £25,000 — — — — — 27 39 47 63 83 Total numbers with income above the lower profits limits 1,030 1,180 1,200 1,270 1,310 1,270 1,210 1,290 1,370 1,530 Notes:
- (1) The Inland Revenue's income survey is a statistical sample survey of taxpayers' records. The components of each column in the above table may not equal its total because of rounding.
- (2) Income is defined net of losses, stock relief and capital allowances.
§ Mr. Austin Mitchellasked the Secretary of State for Social Services if he will bring up to date for the year 1987–88 the information given in his answer of 10 December, Official Report, column 204, to the hon. Member for Great Grimsby concerning the distribution of incomes and national insurance contributions, adding (a) the saving on the abolition of the reduced rate contribution and (b) the numbers contracted-in and contracted-out together with their contributions.
§ Mr. Austin Mitchellasked the Secretary of State for Social Services whether he will publish in the Official Report a table showing his forecast for 1987–88 of the number of class 2 and class 4 contributions for men and women together with the forecast revenue in each case.
§ Mr. MajorThe information is as follows:
1987–88 Great Britain Class 2 Number of contributors (thousands) Men 1,900 Women 200 Contributions Payable (£ million) Men 360 Women 40 It is estimated that in 1987–88 there will be about 1½ million people liable to pay class 4 contributions amounting to £400 million in a full year, and that about 10 per cent. of these figures relate to self-employed women.
§ Mr. Austin Mitchellasked the Secretary of State for Social Services whether he will publish in the Official Report the number of females expected to qualify for the reduced rate of national insurance in the next financial year in return for reduced benefits, the amounts of revenue forgone as a result of this concession and the estimated cost if the recipients were able to claim full benefit.
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§ Mr. MajorIt is expected that during 1987–88 an average of 1.1 million females in Great Britain will be paying class 1 national insurance at the reduced rate for widows and married women. It is estimated that the full year cost of this concession (in 1987–88) in terms of lower contribution revenue will be £200 million. It is impossible to estimate reliably the additional benefit expenditure if those paying reduced rate contributions could claim full benefit.
§ Mr. Austin Mitchellasked the Secretary of State for Social Services whether he will publish in the Official Report a table giving an estimated breakdown for 1987–88 of national insurance contributions on the same basis as in table 40.13 of "Social Security Statistics 1985", together with the appropriate contribution for employees and their employers, and his estimate of the revenue therefrom in each case.
§ Mr. MajorInformation in the form requested is not available as the Government Actuary does not estimate the number of people paying national insurance contributions on the same basis as in table 40.13 published in "Social Security Statistics 1985". The following information is available:
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Estimated Average Number of Contributors 1987–88 Great Britain (Thousands) Men Women Total Class 1 Standard Rate Contracted out 6,300 2,800 9,100 Not Contracted out 5,100 3,900 9,000 Class 1 Reduced Rate — 1,100 1,100 Class 2 1,900 200 2,100 Class 3 95 30 125
Estimated contributions payable in 1987–88 Great Britain £ million Men Women Total Primary Secondary Primary Secondary Primary Secondary Total Class 1 Standard Rate Contracted Out 5,100 5,500 1,600 1,500 6,700 7,000 13,700 Not Contracted Out 4,100 5,100 1,500 1,600 5,600 6,700 12,300 Class 1 Reduced Rate — — 200 400 200 400 600 Class 2 360 40 400 Class 3 20 5 25 Notes:
- (1) Estimated full year contributions yield payable in 1987–88.
- (2) All estimates are based on the assumption used in the Report by 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 (CM24).
§ Mr. Austin Mitchellasked the Secretary of State for Social Services what is the estimated cost of a reduction of one percentage point in the employee's and the employer's national insurance contribution in 1987–88; and if he will publish in the Official Report a table showing for each year since 1957 the rate of contribution in each case as a percentage of average earnings, together with the standard rate of income tax on earned income.
§ Mr. MajorIt is estimated that a reduction of one percentage point in the rates of national insurance contributions in 1987–88 will cost for the full year £1,590 million in respect of employees' contributions, and £1,770 million in respect of employers' contributions.
I shall answer the remainder of the hon. Member's question as soon as possible.