§ Mr. HammondTo ask the Secretary of State for Social Security if she will alter the method of calculation of National Insurance contributions to ensure that differences in the pay-period of two identically paid individuals do not lead to different levels of contribution being payable. [20391]
§ Mr. DenhamThe arrangements for the assessment of National Insurance contributions help people who work for only part of the year or who have irregular earnings to build up entitlement to contributory pensions and benefits. As far as is possible they prevent significant differences arising between the contributions paid by people depending on the period over which their employer chooses to pay them.
As my right hon. Friend, the Chancellor of the Exchequer, said in his pre-Budget speech on 25 November, the Government are looking at the scope for bringing the National Insurance structure for the low paid more closely into line with income tax. This work will include consideration of a number of aspects of the National Insurance contribution system.