§ Ms EagleTo ask the Secretary of State for Social Security what is his estimate of the cost of changing the national insurance threshold into a tax allowance in(a) 1993–94 and (b) 1994–95.
§ Mr. HagueIf employees did not pay contributions on that part of their earnings which falls below the lower earnings limit the cost would be as follows:
(£ billion) In year Full year 1993–94 0.9 1.0 1994–95 0.9 1.0
§ Ms EagleTo ask the Secretary of State for Social Security how much revenue would be raised by abolishing the national insurance ceiling in(a) 1993–94 and (b) 1994–95.
§ Mr. HagueIf the upper earnings limit for employees' contributions was abolished, the additional revenue yield in a full year would be about £2.7 billion for 1993–94 and £3.5 billion for 1994–95. If the upper profits limit for self-employed class 4 contributions was also abolished, the additional yield would be about £0.4 billion for 1993–94 and £0.5 billion for 1994–95.
Over 3 million people would have to pay extra national insurance contributions as a result.