§ Mr. MaddenTo ask the Secretary of State for Social Security what are the current weekly and monthly earnings limits which do not require a person to make national insurance contributions or to be allocated a national insurance number; and what is the current estimate of the numbers of people to whom these exemptions apply. [2548]
§ Mr. HealdThe current weekly and monthly earnings limits below which an employee is not required to pay contributions are £58 and £252 respectively. In any week, some 3 million people are estimated to have earnings below £58. Any individual who enters employment and does not already have a national insurance number is required to apply for one to the Secretary of State, irrespective of the level of earnings.
§ Mr. MaddenTo ask the Secretary of State for Social Security how many spare national insurance numbers exist at the present time.
§ Mr. HealdThere is technically no such thing as a "spare" national insurance number, or NINO. NINOs are unique reference numbers allocated to individuals. These NINOs are kept by the individual throughout their lifetime.
§ Mr. KaufmanTo ask the Secretary of State for Social Security under what circumstances an employer is not required to ask a new employee for his or her national insurance number. [2721]
§ Mr. HealdThe administration of the national insurance scheme is a matter for Mrs. Faith Boardman, the chief executive of the Contributions Agency. She will write to the right hon. Member.
645WLetter from Mrs. Faith Boardman to Mr. Gerald Kaufman, dated 28 November 1995:
As Chief Executive of the Contributions Agency, I have responsibility for answering questions about operational matters relating to the Agency. I have been asked to reply to your question about the circumstances in which an employer is not required to ask a new employee for his or her National Insurance (NI) number.An employer is required by law to ask all new employees for their NI Number where their earnings reach or exceed the prescribed level at which National Insurance contributions (NICs) become payable.The NI Number is a unique reference number which is used by the Department of Social Security to identify a customer's NI record. Its use ensures that NICs paid or credited are put on the right record so that contributors will receive the correct rate of benefit when they make a claim. The NI Number is also used by Inland Revenue as reference for Pay As you Earn (PAYE) purposes. The Contributions Agency issues guidance to employers which stresses the importance of asking all new employees for their NI Number as soon as possible after they start work.It is in employees' own interests to give their NI Number to their employer. If, however, an employee does not know his or her NI Number, the Contributions Agency provides clear guidance to employers on what to do to get that number.I hope that my reply proves helpful. Please let me know if I can be of any further assistance.