National Insurance Contributions

HC Deb 09 February 1990 vol 166 cc801-2W

Mr. Nicholas Brown

To ask the Secretary of State for Social Security what would be the cost of abolishing the 2 per cent. rate of national insurance contribution below £46 a week in 1990–91.

Mrs. Gillian Shephard

National insurance contributions are not payable on earnings that do not reach the lower earnings limit (£46 per week from April 1990). On the basis of assumptions contained in the report by the Government Actuary on the drafts of the Social Security Benefits Up-rating Order 1990 and the Social Security (Contributions) (Re-rating) Order 1990 (Cm 948), the cost of abolishing the 2 per cent. rate of national insurance contributions in 1990–91 would be £890 million. This figure relates to Great Britain.