§ Mr. Malcolm BruceTo ask the Secretary of State for Social Security what is his estimate of the costs to the Exchequer of reducing the rate of employers national insurance contributions by 1 per cent. for each of the ranges of weekly earnings(a) below £59, (b) between £59 and £104.99, (c) between £105 and £149.99, (d) between £150 and £204.99, (e) between £205 and £440 and (f) above £440. [28147]
§ Mr. ArbuthnotThe information in respect of the 1995–96 year is in the table.
weekly earnings equivalent of the annual sum of £3,525; and what is his estimate of the number of individuals who would cease to be liable to pay employee national insurance contributions if such a change were to be implemented. [28144]
§ Mr. ArbuthnotThe estimated reduction in national insurance contributions from employees would be some £450 million a year. At any one time some 500,000 employees, the majority of whom would be women in part-time employment, would no longer pay contributions.
This answer assumes that employers would continue to pay contributions starting at the lower earnings limit and that there would be no change to the range of earnings governing benefit entitlements.
(Estimates based on rates for 1995–96 and the April 1994 new earnings survey).Source:
Government Actuary's Department.