Income-related Benefits

HC Deb 31 March 1993 vol 222 c301W

Mr. Dewar

To ask the Secretary of State for Social Security if he will estimate the full-year cost of increasing all income-related benefits by(a)2.4 per cent. and (b)1.1 per cent. in 1993–94.

Mr. Burt

The estimated cost is in the table:

Table 1
	Average weekly1 earnings (adults) £	Weekly upper3 profits limit £ (UPL)	UPL as a percentage of average earnings Per cent.	Number of people4 Thousands	Estimated effect on NI revenues5 £ Million
April 1978	78.60	120.00	152.7	—	—
April 1992	304.60	405.00	133.0	150	-100
April 1993	2320.00	420.00	131.3	150	-100

Table 2
	Average weekly1 earnings (adults) £	Weekly lower3 profits limit (LPL) £	LPL as a percentage of average earnings Per cent.	Estimated number6 of additional contributors Thousands	Estimated effect on NI revenues5 £ Million
April 1978	78.60	38.50	49.0	—	—
April 1992	304.60	117.70	38.6	300	+150
April 1993	2320.00	121.90	38.1	300	+150
1 Average weekly full time earnings of all adults.Source: New Earnings Survey
2 Assumes a rise in average earnings of 5 per cent. rounded to the nearest £.
3 The LPL and UPL are annual limits, but for the purpose of comparison with the earlier replies they have been converted into weekly limits.
4 The estimated number of people with earnings above the UPL but below the level which would have applied had the UPL been increased in line with average earnings since 1978–79.