HC Deb 01 April 1996 vol 275 cc78-9W
Mr. Burden

To ask the Secretary of State for Social Security (1) what assessment he has made of the impact on living standards of actors of the proposal to take actors out of eligibility for class 1 national insurance contributions; [24018]

(2) what consultations he has had with (a) theatre employers, (b) television employers and (c) actors' organisations on proposals to change actors' eligibility for class 1 national insurance contributions; [24019]

(3) if he will delay a decision on changes to eligibility rules concerning actors and class 1 national insurance contributions pending consultations with (a) theatre employers, (b) televisions employers and (c) actors' organisations. [24017]

Mr. Heald

In reviewing the national insurance position of actors, departmental officials have consulted the following organisations:

  • The Theatres' National Committee,
  • The British Broadcasting Corporation,
  • The ITV Network Centre,
  • The Producers' Alliance for Cinema and Television,
  • The British Actors' Equity Association.

In common with other occupations and professions, liability for the contributions paid by actors depends on the contractual nature of the engagement: that is, whether, under the law, it is employed earner's employment or self-employment. Employment status is decided without reference to any potential impact on the living standards of the individual concerned.

I am meeting representatives of Equity today, 1 April, and I am prepared to have further consultations with the industry if it seeks them.

Mr. Frank Field

To ask the Secretary of State for Social Security if he will list the grounds for removing the right of performing artists to pay class 1 national insurance contributions; what external advice he took before making this decision; and what estimate he has made of the financial impact this move will have on(a) the national insurance fund and (b) the income support budget for the next five years. [23850]

Mr. Heald

This Department has generally regarded performers as employed earners. However, as a result of two tax cases before the special commissioners, the Inland Revenue now generally regards performers as self-employed and we are reviewing our position in the light of this change.

In reviewing the position, departmental officials have sought views from representatives both of performers and of the broadcasting, film, theatre and video industries.

Performing artists have no special rights to pay class 1 national insurance contributions: like other contributors, they are legally liable to pay the appropriate class of contribution depending on their employment status.

No reliable estimate is available of the effects on public funds of any widespread shift away from the payment of class 1 contributions by performers.