§ Mrs. GormanTo ask the Secretary of State for Social Security, pursuant to the answer to the hon. Member for Wanstead and Woodford (Mr. Arbuthnot) of 21 May,Official Report, column 81, whether he has estimated any cost to business in requiring employers to spend more time with national insurance inspectors.
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§ Mrs. Gillian ShephardThere is of course a certain cost to businesses in carrying out the task of calculating and paying the correct amounts of national insurance contributions for their employees; this is an inescapable responsibility for them if their employees are to receive correct amounts of social security benefits and pensions. Most employers carry out this task conscientiously and effectively and thus keep the burden on their business to the minimum. However, there is a minority of employers who, for whatever reason, are performing this task less than effectively and from whom the collection of NICs needs to be improved.
Contributions unit inspectors will be concentrating their efforts on these employers. Their aim will be to help educate such employers (some of whom may be relatively inexperienced). If employers can be assisted to get the task right first time, they will in fact reduce the burden on their business which flows from having to take corrective action. This will help ensure that their employees' NIC records are correct and up to date, and that less staff time in the contributions unit needs to be spent on such corrective activity.
One of the main aims of the contributions unit is to ensure that burdens on businesses are kept as low as is practicable.