§ Mr. AllenTo ask the Secretary of State for Social Security how much revenue would be raised by putting national insurance contributions on the income from savings above(a) £3,000 and (b) £5,000; (i) including pensioners and (ii) excluding pensioners.
§ Mr. JackIf such contributions were charged at the current employees' main percentage rate of 9 per cent. on all investment income above £3,000 and above £5,000 the gain to the national insurance fund would be as shown in the table. However, national insurance contributions are levied only on earnings from employment and this is consistent with the approach since the establishment of the National Insurance Scheme in 1948.
Investment Income National insurance contribution income including pensioners National insurance contribution income excluding pensioners above £3,000 £1.73 billion £0.96 billion above £5,000 £1.35 billion £0.74 billion This estimate is based on a projection of the 1987–88 survey of personal incomes and is therefore provisional.