§ 18. Sir Marcus FoxTo ask the Secretary of State for Social Security how many individuals would be affected by the removal of the upper earnings limit for national insurance contributions.
§ Mr. JackIf the upper earnings limit for employees' national insurance contributions were removed it is currently estimated that about 3.3 million people would pay more in contributions. If the corresponding upper profits limit for self-employed people were also removed it is estimated that about another 0.6 million people would pay more in contributions.
§ 27. Mr. SayeedTo ask the Secretary of State for Social Security what the total cost to business would be if national insurance contributions were levied at 5 per cent. on all employees with earnings below the national insurance threshold.
§ Mr. JackOn the limited information available, we estimate the cost to employers at around £200 million a year in national insurance contributions. In addition, employers would bear substantial administrative costs arising from the extra record keeping involved.