HC Deb 07 February 1992 vol 203 cc321-3W
1991. Mr. Flynn

To ask the Secretary of State for Social Security if he will publish a table showing the percentage of salary paid in national insurance contributions by persons earning annual salaries of £5,000, £15,000, £20,000, £50,000, £100,000 and £200,000 in(a) 1979 and (b)

Mr. Jack

The information requested is in the table:

Annual salary NI contributions paid by employees as a percentage of salary
£ 1979–80 Per cent.1 1991–922 Per cent.2
5,000 6.5 5.2
15,000 3.0 7.7
20,000 2.3 8.1

Annual salary NI contributions paid by employees as a percentage of salary
£ 1979–801Per cent. 1991–922Per cent.
50,000 0.9 3.3
100,000 0.5 1.6
200,000 0.2 0.8

Note:

1Upper earnings limit at 1979–80 level of £7,020 per annum.

2 Upper earnings limit at today's level of £20,280 per annum.

Mr. Marlow

To ask the Secretary of State for Social Security if he will set out the(a) marginal and (b) cumulative reduction in revenue for successive reductions by steps of £10 per week of the upper earnings limit for employees' national insurance contributions from its current level, and corresponding figures for increasing the lower earnings limit by steps of £10 per week.

Mr. Jack

[holding answer 23 January 1992]: The information requested is in the tables.

(a) Upper earnings limit £ Marginal cost1£ million Cumulative cost1£ million
2390
380 -100 -100
370 -150 -250
360 -150 -400
350 -150 -550
340 -150 -700
330 -200 -900
320 -200 -1,100
310 -200 -1,300
300 -250 -1,550
290 -250 -1,800
280 -250 -2,050
270 -250 -2,300
260 -300 -2,600
250 -300 -2,900
240 -350 -3,250
230 -350 -3,600
220 -400 -4,000
210 -400 -4,400
200 -450 -4,850
190 -450 -5,300
180 -500 -5,800
170 -500 -6,300
160 -550 -6,850
150 -550 -7,400
140 -600 -8,000
130 -600 -8,600
120 -650 -9,250
110 -650 -9,900
100 -650 -10,550
90 -700 -11,250
80 -700 -11,950
70 -700 -12,650
60 -750 -13,400
1Employees' contributions only; assumes an unchanged basis for employers' contributions.
2 Current limit.

(b) Lower £ millions
earnings limit £ 1Marginal cost 1Cumulative cost
252
62 -600 -600
72 -600 -1,200
82 -550 -1,750
92 -550 -2,300
102 -550 -2,850
112 -550 -3,400

(b) Lower £ millions
earnings limit £ 1Marginal cost 1Cumulative cost
122 -550 -3,950
132 -550 -4,500
142 -500 -5,000
152 -500 -5,500
162 -500 -6,000
172 -500 -6,500
182 -500 -7,000
192 -500 -7,500
202 -450 -7,950
212 -450 -8,400
222 -450 -8,850
232 -400 -9,250
242 -400 -9,650
252 -400 -10,050
262 -350 -10,400
272 -350 -10,750
282 -350 -11,100
292 -300 -11,400
302 -300 -11,700
312 -300 -12,000
322 -300 -12,300
332 -250 -12,550
342 -250 -12,800
352 -250 -13,050
362 -250 -13,300
372 -200 -13,500
382 -200 -13,700
1 Employees' contributions only; assumes an unchanged basis for employers' contributions.
2 Current limit.

Mr. Marlow

To ask the Secretary of State for Social Security how many people would be affected by a reduction in the ceiling of employees' national insurance payments for each £10 per week reduction and cumulatively at each stage up to a reduction of £150 per week; and what would be the cost and cumulative cost in each case.

Mr. Jack

[holding answer 4 February 1992]: The information requested is in the table.

(Thousands) (£ millions)
Upper earnings limit (£) Numbers affected by change in UEL Cumulative effect Marginal cost1 Cumulative cost1
390 2
380 200 200 -100 -100
370 300 500 -150 -250
360 300 800 -150 -400
350 300 1,100 -150 -550
340 300 1,400 -150 -700
330 400 1,800 -200 -900
320 400 2,200 -200 -1,100
310 400 2,600 -200 -1,300
300 400 3,000 -250 -1,550
290 400 3,400 -250 -1,800
280 500 3,900 -250 -2,050
270 500 4,400 -250 -2,300
260 500 4,900 -300 -2,600
250 500 5,400 -300 -2,900
240 500 5,900 -350 -3,250
1Employees' contributions only; assumes an unchanged basis for employers' contributions.
2 Current limit.