§ Mr. Alan HowarthTo ask the Secretary of State for Social Security how many employers have qualified for exemption from national insurance contributions and how many qualifying employees were previously(a) unemployed, (b) on a training scheme, (c) carers and (d) lone parents. [36902]
§ Mr. HealdFrom 6 April 1996 to 9 July 1996, the Contributions Agency issued 398 national insurance holiday deduction certificates to employers1. Of the 398 qualifying employees, 381 were unemployed2, three were carers and 14 were lone parents.
Notes:1 The Contributions Agency has recorded 336 employers as having received one or more national insurance holiday deduction certificates. The numbers are less than the number of qualifying employees due to a combination of a short delay in recording employer details after the Contributions Agency has issued a certificate and because an employer may have taken on more than one qualifying employee.2 Includes people on a training scheme who are not identified separately for these purposes.
§ Mr. SoleyTo ask the Secretary of State for Social Security if he will estimate the effect on national insurance fund revenues in a full year of levying(a) a 2 per cent. employee contribution rate and (b) a 3 per cent. employer contribution rate on the earnings of employees with total earnings currently below the NIC lower earnings limit. [37595]
§ Mr. HealdThe estimated effects on national insurance fund revenue for 1997–98 are
+ £ 95 million and + £100 million respectively.Source:Government Actuary's Department.
§ Mr. Chris SmithTo ask the Secretary of State for Social Security (1) if he will list the number of people paying voluntary class 3 national insurance contributions for the most recent available year, and the number of these562W who are employed earners with earnings below the national insurance lower earnings limit, breaking the figures down by gender; [37594]
(2) pursuant to his answer of 2 July, Official Report, column 418, if he will estimate the number of (a) men and (b) women with earnings below the lower earnings limit for national insurance contributions who pay voluntary class 3 NICs. [37586]
§ Mr. HealdThe information is not available in the format requested. Such information as is available is as follows.
Number of people paying voluntary class 3 contributions for 1993–94 Number Men 111,000 Women 70,000 Total 181,000 Source:
One per cent. sample of national insurance records at February 1995.
Figures are rounded to the nearest thousand.
§ Ms CorstonTo ask the Secretary of State for Social Security what would be total contribution income for national insurance for 1995–96, 2000–01, 2010–11, 2020–21 and 2030–31, assuming(a) present contribution rates, (b) upper and lower earnings levels linked with earnings and (c) upper and lower earnings levels linked with earnings and the upper earnings level raised by 200 per cent. of average earnings, relative to current estimates of expenditure on benefits in those years. [38543]
§ Mr. HealdThe available information is in the tables.
Table A: National Insurance Fund: estimated contribution income[£ billion at 1994–95 prices] at present contribution rates for1994–95, 2000–01, 2010–11, 2020–21 and 2030–31 as apercentage of estimated benefit expenditure [£ billion at 1994–95 prices] for those years Year 1994–95 2000–01 2010–11 2020–21 2030–31 Income 36.4 45.1 55.1 64.0 69.6 Expenditure 39.9 42.2 50.8 56.4 63.8 Income as a percentage of expenditure 91 107 109 113 109
Table B: National Insurance Fund: estimated contribution income [£ billion at 1994–95 prices], assuming upper and lower earnings limits for Class 1 contributions linked with earnings, for 1994–95, 2000–01, 2010–11, 2020–21 and 2030–31 as a percentage of estimated benefit expenditure [£ billion at 1994–95 prices] for those years Year 1994–95 2000–01 2010–11 2020–21 2030–31 Income 36.4 45.2 54.9 64.6 71.8 Expenditure 39.9 42.2 50.8 56.4 63.8 Income as a percentage of expenditure 91 107 108 114 113
563W
Table C: National Insurance Fund: estimated contribution income [£ billion at 1994–95 prices], assuming upper and lower earnings limits for Class 1 contributions linked with earnings and the upper earnings limit raised to 200 per cent. of average earnings, for 1994–95, 2000–01, 2010–11, 2020–21 and 2030–31 as a percentage of estimated benefit expenditure [£ billion at 1994–95 prices] for those years Year 1994–95 2000–01 2010–11 2020–21 2030–31 Income 38.1 47.3 57.6 67.7 75.2 Expenditure 39.9 42.2 50.8 56.4 63.8
Table C: National Insurance Fund: estimated contribution income [£ billion at 1994–95 prices], assuming upper and lower earnings limits for Class 1 contributions linked with earnings and the upper earnings limit raised to 200 per cent. of average earnings, for 1994–95. 2000–01, 2010–11, 2020–21 and 2030–31 as a percentage of estimated benefit expenditure [£ billion at 1994–95 prices] for those years Year 1994–95 2000–01 2010–11 2020–21 2030–31 Income as a percentage of expenditure 96 112 113 120 118 Notes:
1. The information given in the tables has been derived from the Government Actuary's Reports on the Third Quinquennial Review under section 137 of the Social Security Act 1975 (HC 160) and on the Financial Provisions of the Pensions Bill 1994 (CM 2714) by:
- adjusting the entries in table E3 and E4 of HC 160 so that the projected contribution income is based on a continuation of the 1994–95 combined Class 1 contribution rate (18.25%). Hence, the tables give information for 1994–95 rather than 1995–96;
- adjusting contribution income for the years 2020–21 and 2030–31 to allow for the increased number of contributors expected as a result of the Pensions Act 1995;
- adjusting the amounts of contracted-out rebate to allow for the difference between rebate rates assumed in HC 160 and those now expected.
2. For table(c),. a further adjustment has been made to allow for the change in primary Class 1 contributions and rebates following from increasing the UEL to twice average earnings.
3. The estimated benefit expenditure information given in all three tables is that consistent with increasing the UEL and LEL in line with prices, even where (in tables (b)and(c)) the contribution income figures are based on increasing those limits in line with earnings, and allows for the effects of the Pensions Act 1995.
Source:
Government Actuary's Department.
§ Ms CorstonTo ask the Secretary of State for Social Security what is the Government Actuary's estimate of the excess of national insurance contribution income over outgoings for 1995–96 and for 1994–95, assuming actual rates of unemployment, excluding the Treasury grant and(a) excluding and (b) including the effects of contracted-out rebates, using the methodology set out in Cm 2445. [38542]
§ Mr. HealdThe information is in the table.
£ billion 1994–95 1995–96 (a) Excluding contracted-out rebates Contributions income 43.3 45.7 Benefit outgo 39.3 40.6 Excess/(shortfaIl) 4.0 5.1 (b) Including contracted-out rebates Contributions income 38.3 40.4 Benefit outgo 39.3 40.6 Personal pension rebates 2.0 2.0 Excess/(shortfall) 3.0 2.2 Source:
Government Actuary's Department.
§ Mr. HowarthTo ask the Secretary of State for Social Security what is his estimate of the impact on revenue of an increase in the upper earnings limit for national insurance contributions by average earnings for the years 1995–96 and 1996–97. [39006]
564W
§ Mr. HealdRaising the upper earnings limit for 1995–96 and 1996–97 in line with the movement in average earnings would increase national insurance contribution revenue for each of those years by an estimated £50 million1.
Source:Government Actuary's DepartmentNote:1 This figure has been calculated by comparing the effects on national insurance contribution revenue of:and the actual UELs for those years.
- (i) a UEL for 1995/96 derived by applying the September 1993 to September 1994 4 per cent. increase in seasonally adjusted average earnings for all employees in GB [Table 5.1 of Labour Market Trends] to the UEL for 1994/95; and
- (ii) a UEL for 1996/97 derived by applying the September 1994 to September 1995 3.1 per cent. increase in seasonally adjusted average earnings for all employees in GB [Table 5.1 of Labour Market Trends] to the unrounded result of (i);