HC Deb 02 April 1996 vol 275 c218W
Mr. Jim Cunningham

To ask the Secretary of State for Social Security if he will estimate the annual yield from employers' national insurance levied on salaries subsequently used by employees to make personal pension contributions. [23981]

Mr. Heald

Such estimates as are available are in the table.

Employers' National Insurance Contributions (NICS) paid in respect of employees with Personal Pensions.
£ billion
Year Amount of Employers' NICs
Annual total Cumulative total
1987–88 2.1 2.1
1988–89 2.6 4.7
1989–90 3.5 8.2
1990–91 4.1 12.3
1991–92 4.4 16.7
1992–93 4.7 21.4
1993–94 4.8 26.2
Notes:
  1. 1. There are no data available on that part of the earnings of personal pension holders which falls above the upper earnings limit. The calculations have therefore been made on the assumption that those with earnings above the UEL earned the same amount on average as all employees with earnings above the UEL in each year. They also assume that earnings are constant on a weekly or monthly basis throughout the year.
  2. 2. Employers' NICs are not payable where total earnings are below the annual lower earnings limit.
Source:

Government Actuary's Department.

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