§ Mr. Austin MitchellTo ask the Secretary of State for Social Security whether he will publish in theOfficial Report a table showing for those contracted in and for those contracted out, the national insurance contributions rates, including the class 2 and class 4 contributions and the reduced rate, in 1988–89, together with (a) the total number in each category, their sex and their marital status and (b) the aggregate contributions in each category and the earnings to which they relate.
§ Mr. Peter Lloyd[holding answer 27 July 1988]: Full details of the current national insurance contribution rates can be found in leaflet N1208 "National Insurance, Statutory Sick Pay, Statutory Maternity Pay—rates from 6 April 1988" a copy of which has been placed in the Library.
Estimated numbers of National Insurance contributors in 1988–89 Millions Males Females Total Class 1: Contracted out Standard Rate 6.3 2.7 9.0 Reduced Rate — 0.3 0.3 Not Contracted out Standard Rate 5.2 4.2 9.4 Reduced Rate — 0.7 0.7 All Standard Rate 11.5 6.9 18.4 Reduced Rate — 1.0 1.0 Total 11.5 7.9 19.4 Class 2 1.9 0.2 2.1 Class 4 1.45 0.15 1.6
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Estimated amounts of National Insurance contributions in 1988–89 £ billions Males Females Total Class 1: Contracted out Standard Rate 11.7 3.55 15.25 Reduced Rate — 0.25 0.25 Not Contracted out Standard Rate 10.1 3.85 13.95 Reduced Rate — 0.35 0.35 All Standard Rate 21.8 7.4 29.2 Reduced Rate — 0.6 0.6 Total 21.8 8.0 29.8
Males Females Total £ millions Class 2 380 40 420 Class 4 400 40 440
Estimated total earnings of employees in employment in 1988–89 £ billions Males Females Total Employees: Contracted out Standard Rate 85 25 110 Reduced Rate — 2 2 Not contracted out Standard Rate 57 25 82 Reduced Rate — 4 4 All Standard Rate 142 50 192 Reduced Rate — 6 6 Total 142 56 198 Estimated total assessed earnings of self-employed in 1988–89 Self-employed 22.5 2.5 25 Estimates by marital status are not available.
§ Mr. Austin MitchellTo ask the Secretary of State for Social Security what is the current reduced rate of national insurance contributions for(a) married women and (b) widows; how many are still paying contributions at this rate; what is his forecast for 1990–91; how many would otherwise be paying at the rate of 5 per cent, and 7 per cent.; and what is the estimated cost to the national insurance fund in the current financial year in each case.
§ Mr. Peter Lloyd[holding answer 27 July 1988]: The current reduced rate contribution for both married women and widows is 3.85 per cent, and it is estimated that around 1 million women are contributing at this rate. It is further estimated that 750,000 women will still be paying at the reduced rate in 1990–91.
If the reduced rate were abolished, around 0.3 million of the women now paying it would pay contributions at 5 per cent., 0.25 million at 7 per cent., and 0.45 million at 9 per cent. The cost of this concession to the national insurance fund in 1988–89 terms would be £200 million.
§ Mr. Austin MitchellTo ask the Secretary of State for Social Security what has been the increase in the number and annual value of national insurance contributions since 1986 as a result of the reduction in unemployment; and what is the division between full-time and part-time employment.
§ Mr. Peter Lloyd[holding answer 27 July 1988]: It is not possible to identify the effect of the reduction in unemployment on the numbers paying national insurance contributions.
§ Mr. Austin MitchellTo ask the Secretary of State for Social Security whether he will publish in theOfficial Report a table showing the number of nationally insured male and female workers in manufacturing and non-manufacturing, respectively, together with his estimate of average earnings in each case in 1987–88 and his forecast for 1988–89.
§ Mr. Peter Lloyd[holding answer 27 July 1988]: I regret that information in the form requested is not available.
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§ Mr. Austin MitchellTo ask the Secretary of State for Social Security whether he will publish in theOfficial Report a table showing the latest estimated income of the national insurance fund from national insurance contributions in the current financial year, the income which would accrue if the upper earnings limit on all contributions was removed and the income which would be lost in each case if (a) the contributions rate for single persons was reduced to 5.5 per cent., (b) the rate for married persons was dropped to 4 per cent., (c) £3,000 were deducted from earned income for contribution purposes, rising to £6,000 for a contributor with a non-earning spouse and (d) if the reductions in (a) to (c) were in operation at the same time.
§ Mr. Peter Lloyd[holding answer 27 July 1988]: The amount of national insurance contributions due to the national insurance fund in 1988–89 is estimated to be £27.3 billion of which £11.85 billion is employees (primary) contributions.
The table shows the estimated effect of the proposals in the question:
£ Billions Current 1988–89 estimates 27.3 If Upper Earnings Limit removed for1 employees contributions 28.6 +1.30 If single person's rate reduced2 to 5.5 per cent. 25.55 -1.75 If married person's rate reduced2 to 4 per cent. 22.15 -5.15 If £3,000 deducted from earnings2 for contribution purposes (£6,000 where spouse is non-earning) 23.50 -3.8 If all proposals were in existence2 at same time 18 -9.30 1 Assumes that current upper earnings limit remains for the purposes of contracted-out rebates. 2 Assumes that secondary contributions and contracted-out rebates would be unaffected and that all losses are from gross primary contributions ie. no adjustments for NHS allocation.
§ Mr. Austin MitchellTo ask the Secretary of State for Social Security, pursuant to the reply dated 25 March 1987,Official Report, columns 199–200, concerning reduced rate national insurance contributions, if he will provide figures for the gross and net contributions, taking into account the figures supplied on the same date in reply to a question asking for an update of table 40.13 of social security statistics 1985, 25 March, Official Report, column 200.
§ Mr. Peter Lloyd[holding answer 28 July 1988]: It is estimated that an average of 1 million female contributors will be paying the reduced rate of national insurance contributions in 1988–89. The full year cost of this concession in 1988–89 in terms of lower contribution revenue will be £200 million.