§ 110. Mr. CoxTo ask the Secretary of State for Social Services what measures are taken by his Department to enforce payment of national insurance contributions by employers so that employees are not denied entitlement to unemployment benefit.
§ Mr. ScottEmployees' class 1 national insurance contributions are usually collected by the Inland Revenue's PAYE arrangements, the bulk of which are paid into the national insurance fund. The Inland Revenue can recover contributions that are not paid over by employers, but this Department takes responsibility for enforcement. Enforcement is usually achieved by suing for the debt in the civil courts, but criminal proceedings can be instituted.
There are some, 2,000 national insurance inspectors, who examine employers' records to ensure compliance with the National Insurance Contributions Regulations. In the year ending April 1987 the inspectors completed some 100,000 surveys, in which employers' records were examined. Inland Revenue PAYE auditors also visit firms and examine their records. These routine visits can lead to the discovery of irregularities.
Employees' contributions which have been collected are recorded after the end of the tax year on the person's national insurance account, which is held by the Department's records branch. If insufficient contributions are recorded there for that year, the person is informed, and irregularities can then come to light. Failure on the part of employers to pay over contributions can also be discovered when a benefit claim fails.
All cases where contributions have not been recorded on the person's account are investigated urgently. Contributions will usually be treated as if they had been paid, so that entitlement to benefit is not affected. Action is then brought against the employer to recover the arrears.