National Insurance (Hansard, 26 June 1996)

§ Mr. Alan Howarth
To ask the Secretary of State for Social Security how many people are currently earning below the lower earnings limit for national insurance contributions; and how many and what proportion of these are part-time workers. [34276]

§ Mr. Heald
An estimated 2.6 million people, 95 per cent. of whom work part time, have one or more jobs with earnings below the lower earnings limits.
Source:
Office for National Statistics.

§ Mr. Howarth
To ask the Secretary of State for Social Security what was the amount paid in national insurance contributions by employers; and what proportion this represents of the national insurance fund in each of the last three years. [34245]

§ Mr. Heald
The information requested is in the table:

1992–93 1993–94 1994–95

Employers' contributions¹ (£ billion) 20.2 21.1 21.3

Employers' contributions as a percentage of National Insurance Fund receipts² 56.7 47.5 47.2

¹ Total of employers' class 1 and class 1A contributions paid into the national insurance fund.

² National insurance fund receipts include contributions paid by employers, employees and the self—employed, the Treasury grant (from April 1993) and other income. Further information is available in the national insurance fund accounts for each year, copies of which are in the Library.

§ Mr. Howarth
To ask the Secretary of State for Social Security what is his estimate of the cost of removing employer national insurance contributions on earnings below the lower earnings limit. [34234]

§ Mr. Heald
If employers were not required to pay national insurance contributions on the portion of their employees earnings below the lower earnings limit, contribution revenue for 1997–98 would be reduced by about £5 billion.
Source:
Government Actuary's Department.

	1992–93	1993–94	1994–95
Employers' contributions¹ (£ billion)	20.2	21.1	21.3
Employers' contributions as a percentage of National Insurance Fund receipts²	56.7	47.5	47.2
¹ Total of employers' class 1 and class 1A contributions paid into the national insurance fund.
² National insurance fund receipts include contributions paid by employers, employees and the self—employed, the Treasury grant (from April 1993) and other income. Further information is available in the national insurance fund accounts for each year, copies of which are in the Library.