§ 18. Mr. HarrisTo ask the Secretary of State for Social Security what would be the average cost to a non-pensioner of the imposition of national insurance contributions at 9 per cent. on income from savings above £3,000.
§ Mr. NewtonWe estimate that in the United Kingdom the average cost in 1991–92 to a non-pensioner would be £770.
§ Mr. Harry GreenwayTo ask the Secretary of State for Social Security what is his estimate of the annual cost of providing full national insurance benefits to those with earnings below the lower earnings limit.
§ Mr. JackThe cost would depend on various factors, including the scope of the benefits scheme proposed and the incidence of claims among low earners. I regret that the information on which such an estimate could be made is not presently available.
However, some 3 million employees earning less than the lower earnings limit might be affected from such an arrangement and as a result payment for such benefit could cost billions in the longer term.
§ 22. Mr. NorrisTo ask the Secretary of State for Social Security what would be the revenue yield(a) of a 4.5 per cent. rate of national insurance contributions applied to all income in excess of £20,280 a year and (b) an increase in the national insurance contributions upper earnings limit to £26,000 a year.
§ Mr. JackWe estimate that a 4.5 per cent. charge on earnings over £20,280 a year would yield about £1–5 billion in respect of 1991–92.
Raising the upper earnings limit for employees to £26,000 a year, would yield about £0.6 billion.