HC Deb 12 December 1996 vol 287 cc354-5W
Ms Corston

To ask the Secretary of State for Social Security what is his estimate of the yield of an additional(a) 0.5 per cent. and (b) 1 per cent. on the top rates of national insurance contributions paid by (i) employees, (ii) employers and (iii) the self-employed, at 1995–96 prices and contribution rates, in the years (1) 2000–01, (2) 2010–11, (3) 2020–21 and (4) 2030–31. [8250]

Mr. Heald

The information is in the table:

Great Britain accruals £ billions in 1995–96 prices
2000–01 2010–11 2010–21 2030–31
(a) 0.5 per cent NIC increase
Employees 1.20 1.40 1.50 1.55
Employers1 1.55 1.95 2.35 2.65

Great Britain accruals £ billions in 1995–96 prices
2000–01 2010–11 2010–21 2030–31
Self-employed2 0.10 0.10 0.10 0.10
(b) 1 per cent. NIC increase
Employees 2.45 2.80 3.05 3.10
Employers1 3.15 3.95 4.70 5.30
Self-employed2 0.15 0.20 0.20 0.20

Notes:

1 Includes class 1A contributions paid by employers on cars and car fuel.

2 Increase applies to self-employed class 4 national insurance contributions.

Class 1 earnings limits and class 4 profits limits assumed to rise in line with prices.

Source:

Government Actuary's Department.

Ms Corston

To ask the Secretary of State for Social Security what is his estimate of additional national insurance contribution revenue from employees and employers by 1995–96 if both the lower and upper earnings limits for contribution had been increased annually in relation to earnings since 1979–80. [7897]

Mr. Heald

The information is not available in the format requested. Such information as is available is in the table.

Great Britain (accruals)
£ billions
Loss in revenue
1990–91 -0.85
1991–92 -1.15
1992–93 -1.45
1993–94 -1.55
1994–95 -1.90
1995–96 -2.35

Notes:

1. Assumes that contracted-out rebates in respect of occupational pension schemes apply between the revised lower and upper earnings limits.

2. Assumes that the three brackets for employers contributions increase in line with the rise in the revised lower earnings limits.

3. The overall effect would have been a loss of revenue.

Source:

Government Actuary's Department