HC Deb 24 October 1994 vol 248 c427W
Mr. Denzil Davies

To ask the Secretary of State for Social Security what would be the total cost in the full year of widening the nil band of the class 1 employee NIC (contracted in) up to earnings of £100 per week.

Mr. Arbuthnot

The loss of income would be some £1.5 billion in a full year.

Notes: Employee contributions—assumes that contributions are deducted at 2 per cent. on first £100 of earnings once they exceed the lower earnings limit. Employer contribution—assumes that the lower earnings limit becomes £100 and that the existing structure of rates and earnings brackets applies above it. Assumes that band earnings for the purpose of contracting out also begins at £100.