§ Mr. PaiceTo ask the Secretary of State for Social Security how much extra revenue would be raised by his Department if the upper earnings limit on national insurance contributions were abolished on the basis of existing scales.
§ Mrs. Gillian ShephardIf the upper earnings limit for employees' national insurance contributions were abolished it is estimated that the extra revenue raised at current rates would be £2.45 billion. This assumes that an upper limit would be retained for contracting-out and that all contributions above that limit would be at the full not contracted-out rate.
§ Mr. PaiceTo ask the Secretary of State for Social Security how much revenue would be raised if national insurance contributions were chargeable at current rates on investment income above a national insurance contribution threshold of £3,500.
§ Mrs. Gillian ShephardIf national insurance contributions were charged at the employees' main percentage rate of 9 per cent. on all investment income over £3,500 per year, including that of pensioners, it is estimated that the revenue raised at current rates would be about £1.53 billion. This estimate is based on a projection of the 1987–88 survey of personal incomes and is therefore provisional.
§ Mr. PaiceTo ask the Secretary of State for Social Security what would be the cost to a pensioner with an investment income of(a) £5,000, (b) £10,000 and (c) £1,000 as a result of the imposition of national insurance contributions on all investment income at current rates of national insurance contributions.
§ Mrs. Gillian ShephardPensioners do not currently pay national insurance contributions, but if such contributions were charged at the employees' main percentage rate of 9 per cent. on all investment income the cost to a pensioner would be as shown in the table.
Investment income (£) National insurance contribution (£) 5,000 450 10,000 900 1,000 90
§ Mr. PaiceTo ask the Secretary of State for Social Security what would be the cost to a pensioner with an investment income of(a) £3,500, (b) £5,000 and 893W (c) £10,000 as a result of imposing national insurance contribution charges on all investment income above £3,000 and above £3,500.
§ Mrs. Gillian ShephardPensioners do not currently pay national insurance contributions but if such contributions were charged at the employees' main percentage rate of 9 per cent. on all investment income above £3,000 and above £3,500 the cost to a pensioner would be as shown in the table.
National Insurance contributions Investment income Ceiling of £3,000 Ceiling of £3,500 £ £ £ 3,500 45 nil 5,000 180 135 10,000 630 585
§ Mr. PaiceTo ask the Secretary of State for Social Security what would be the total cost, per week, to individuals on(a) 1.5, (b) two, (c) 2.5 and (d) three times average incomes, if the upper earnings limit for national insurance contributions were abolished on the basis of the existing scales.
§ Mrs. Gillian ShephardThe table shows the extra cost per week to the individuals concerned assuming that an upper limit was retained for contracting out and that all contributions above that limit would be at the full not contracted-out rate.
Average male full time1 earnings Extra cost per week £ X 1.5 (£450) 9.00 X 2 (£600) 22.50 X 2.5 (£750) 36.00 X 3 (£900) 49.50 1 Assumed as £300 in 1990–91 for illustrative purposes.