HC Deb 18 July 1995 vol 263 cc1087-90W
Mr. David Shaw

To ask the Secretary of State for Social Security if he will make a statement on the results of(a) his policies and (b) his Department in helping small businesses over the last 12 months as against the previous 12 months; and if he will publish the performance indicators by which his Department monitors those achievements and the statistical results of such monitoring. [34694]

Mr. Burt

The Government recognise the crucial role played by small firms in the UK economy. The Government continue to help smaller companies by keeping inflation and interest rates low and by reducing legislative, administrative and taxation burdens. They also provide direct assistance where appropriate.

The White Paper announced in May 1995 outlines a programme of measures to assist the growth and competitiveness of small firms sector.

Measures introduced by the Department of Social Security over the last 12 months to assist small businesses include: reductions in national insurance contributions from April of 0.6 per cent. for employers of lower paid employees (earnings under £205 a week). The earnings brackets for each of the three lower rates were also increased by more than the rate of inflation. changes to the reimbursement arrangements for statutory sick pay from April. The new percentage threshold scheme will help any employer with a large proportion of his work force off sick at the same time. It reimburses SSP costs exceeding 13 per cent. of the monthly national insurance bill. The scheme is straightforward to operate and will protect the cash flow of the businesses covered more effectively. Small businesses will continue to receive the lion's share of SSP reimbursement.

Other measures aimed at business in general, which should help small businesses, include: From October 1994, employers are no longer required to arrange for persons engaged in certain specified occupations involving a risk of pneumoconiosis to submit themselves for medical examination saving staff time and administrative costs for employers. In his November Budget statement, the Chancellor announced that the Contributions Agency will accept dispensations for expenses payments already agreed with the Inland Revenue for tax purposes, provided the circumstances under which they were issued have not changed. The CA will also now consider any reasonable form of evidence to determine the profit element of expenses payments. Previously only logs detailing actual expenses were acceptable.

The Contributions Agency has also initiated a number of customer service improvements, including: the publication of a code of practice on 6 April. This code is sent to employers prior to a survey of their national insurance records to explain what they can expect from the CA and what the CA would like from them. The aim is to help employers prepare in advance so that the survey can be carried out more quickly and with the minimum disruption to the employer. the appointment of an independent adjudicator on 1 June to investigate complaints where a customer remains dissatisfied following consideration by the chief executive. there are plans to expand further the provision of information for businesses and the self-employed on the Internet. the extension and streamlining of the call answering capacity of the telephone helpline for employers, SSALE. the provision of information on the availability of Payroll Bureaux assistance in the latest edition of the employers guide issued in March.

the provision of information to interested parties on national insurance matters including SSP and statutory maternity pay through talks, presentations and seminars held by local customer service managers.

The Department has a system to monitor proposals which have an impact on small businesses to ensure that

Changes in real income by quintile group 1979–1992/93, including the self-employed
Percentage
Quintile 1 Quintile 2 Quintile 3 Quintile 4 Quintile 5
Bottom 20 20–40 40–60 60–80 Top 20
Before housing costs 7 14 26 34 50
After housing costs -4 10 27 37 53

Notes:

Percentage growth estimates are calculated from the median income of each quintile. All estimates are subject to sampling error.

Money values of quintile medians for households with children 1979 and 1992–93
Percentage
Quintile 1 Quintile 2 Quintile 3 Quintile 4 Quintile 5
Bottom 20 20–40 40–60 60–80 Top 20
Before housing costs
1979 105 141 169 203 267
1992–93 104 150 208 275 414
After housing costs
1979 88 119 144 175 232
1992–93 78 120 174 234 359

Notes:

The figures relate to the median income level in each quintile.

The figures given are for equivalised income and are given to the nearest whole £

Small changes are unlikely to be statistically significant.

All estimates are subject to sampling error.

Monetary amounts are given in March 1995 prices in order not be comparable with those shown in the latest edition of Households Below Average Income. Estimates are for weekly income and should not be converted into annual amounts.

Ms Corston

To ask the Secretary of State for Social Security how many children were in households living on incomes(a) below the 1979 bottom decile and (b) below 50 per cent. of 1979 average income, in 1979 and in 1992–93, following tables 11.1 and 11.5 of the latest households below average income report; and what was the value of the thresholds in these years. [34479]

Mr. Mitchell

The information is in the tables.

Numbers of children below fixed income thresholds
Thousands
1979 Actual 1979 Adjusted 1992–93
(a) Below 1979 Bottom Decile Median
Before Housing Costs 820 770 810
After Housing Costs 860 810 1,180

the needs and costs to small businesses are taken into account, but there are no performance indicators specifically for monitoring achievements in this area. However, we attach particular importance to action taken to help small businesses and continue to explore ways of doing so.

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