HL Deb 27 January 1994 vol 551 cc80-2WA
Lord Redesdale

asked Her Majesty's Government:

How much revenue they would lose if firms could pay a national insurance contribution of up to £20,000 per annum before losing small employers' relief and, also, if there were a 100 per cent. reimbursement in cases of illness lasting longer than (a) four weeks; (b) three weeks; (c) two weeks; (d) one week.

The Parliamentary Under-Secretary of State, Department of Social Security (Viscount Astor)

The table shows the total cost to the Government of introducing a Small Employers' Relief scheme at 100 per cent. for firms with national insurance contributions below £20,000 for illnesses lasting longer than (a) 4 weeks, (b) 3 weeks, (c) 2 weeks, (d) 1 week.

Weeks Estimated cost
(millions)
(a) 4 £25
(b) 3 £30
(c) 2 £35
(d) 1 £45

Notes:

1. Figures are at 1994–95 prices and caseloads. Figures are rounded to the nearest £5 million, but are not accurate to that degree.

2. Figures are subject to some uncertainty.

3. From April 1994, the Government propose to reimburse employers whose national insurance contributions are below £20,000 per annum for days of sickness beyond the fourth week.

Lord Redesdale

asked Her Majesty's Government:

How much revenue they would lose if firms could pay a national insurance contribution of up to £32,000 per annum before losing small employers' relief and, also, if there were a 100 per cent. reimbursement in cases of illness longer than (a) four weeks; (b) three weeks; (c) two weeks; (d) one week.

Viscount Astor

The table shows the total cost to the Government of introducing a small employers′ relief scheme at 100 per cent. for firms with national insurance contributions below £32,000 for illness lasting longer than (a) 4 weeks, (b) 3 weeks, (c) 2 weeks, (d) 1 week.

Weeks Estimated cost
(millions)
(a) 4 £40
(b) 3 £45
(c) 2 £55
(d) 1 £65

Notes

(1) Figures are at 1994–95 prices and caseloads. Figures are rounded to the nearest £5m, but are not accurate to that degree.

(2) Figures are subject to some uncertainty.

(3) From April 1994, the Government propose to reimburse employers whose National Insurance contributions are below £20,000 per annum for days of sickness beyond the fourth week. This is estimated to cost around £25 million in 1994–95.