§ Mr. SteinbergTo ask the Secretary of State for Social Security what percentage of (i) men and (ii) women of working age in each year since 1978–79 had a national insurance contribution record for the year with contributions equivalent to less than 25 times the lower earnings limit; and what proportion of these(a) had a similar contribution record for two or more years running and (b) were in receipt of contribution credits in each year. [21027]
896W
§ Mr. HealdThe information is in the tables:
Men Thousands Number with class 1 earnings below25 x LEL Number with two or more years Proportion with similar record for two years or more(per cent.) Number with class 1 earnings below 25 x LEL and credits 1978–79 479 88 18 368 1979–80 447 148 33 337 1980–81 457 140 31 360 1981–82 524 147 28 421 1982–83 561 166 30 467 1983–84 603 182 30 514 1984–85 666 164 25 525 1985–86 433 130 30 377 1986–87 490 146 30 420 1987–88 673 197 29 542 1988–89 666 226 34 502 1989–90 659 235 36 473 1990–91 639 237 37 456 1991–92 689 256 37 487 1992–93 718 280 39 506 1993–94 787 304 39 551 1994–95 842 — — 580
Women Thousands Number with class 1 earnings below 5 xLEL Number with two or more years Proportion with similar record for two years or more (per cent.) Number with class1 earningsbelow25 x LE Land credits 1978–79 651 165 25 340 1979–80 691 298 43 342 1980–81 745 337 45 356 1981–82 831 378 45 394 1982–83 909 437 48 427 1983–84 1,013 490 48 471 1984–85 1,082 495 46 482 1985–86 914 467 51 371 1986–87 1,023 506 49 423 1987–88 1,201 578 48 475 1988–89 1,272 624 49 458 1989–90 1,246 621 50 416 1990–91 1,191 614 52 406 1991–92 1,219 637 52 421 1992–93 1,220 653 53 413 1993–94 1,274 679 53 440 1994–95 1,322 — — 442 1. Source: 1 per cent. sample of national insurance recording system taken in February 1996.
2. Figure are United Kingdom.
3. Figures are rounded to the nearest thousand.
4. Analysis is based on people with Class 1 contributions below 25 times the weekly LEL in the year.
5. Figures for 1994–95 are provisional.
6. Figures for the number with two or more consecutive years are not available for 1994–95.
§ Mr. SteinbergTo ask the Secretary of State for Social Security what liability is placed on (i) training providers and (ii) employers providing work placements for young 897W people with non-employed status on youth credits/youth training for national insurance payments for young people aged (a) 16 to 17 years and (b) 18 years and over. [21020]
§ Mr. HealdNeither training providers nor employers providing work placements have any national insurance contribution liability in respect of any young people with non-employed status on youth training.
§ Mr. SteinbergTo ask the Secretary of Stae for Social Security what credits in respect of national insurance contributions awarded to young people aged 18 years and over who are on youth credits/youth training with non-employed status. [21021]
§ Mr. HealdYoung people aged 18 years and over may be awarded a class 1 national insurance credit for each week in which they attend an approved training course, provided that they had reached age 18 before the beginning of the tax year in which the period of training occurs and that the course, as its outset, is not expected to continue for more than 12 months. If their contribution record for the tax year in which they reached age 18 and for subsequent tax years does not enable them to satisfy the contribution conditions for entitlement to jobseeker's allowance and incapacity benefit, they may also be awarded special credits for those years.
Class 3 credits for pension purposes are available to all young people for the contribution year in which they reach age 18 and the two preceding years.
§ Mr. SteinbergTo ask the Secretary of State for Social Security (1) what would be the level in 1997–98 of the national insurance lower earnings limit and contribution ceiling if they had been uprated in line with earnings since 1979; [21092]
(2) if he will estimate the cumulative effect on Government revenues since 1979 of the change in indexation from earnings to prices of (a) the national insurance lower earnings limit and (b) the national insurance contribution ceiling for employees and employers; and if he will provide figures for the net revenues. [21073]
§ Mr. HealdThe lower and upper limits for class 1 national insurance contributions are linked to the level of the basic retirement pension. If the basic retirement pension had been uprated since 1980 in line with the higher of earnings or prices, the lower and upper earnings limits for 1997–98 would be £86 and £645 respectively. The estimated full-year effects of limits set at these levels for 1997–98 are shown in the table. Information for earlier years is not available and could be obtained only at disproportionate cost.
898W
Estimated full-year effects of lower and upper earnings limits for class 1 national insurance contributions set at £86 and £645 perweek respectively in 1997–98 £ million LEL £86 UEL £645 Employees Gross -1,900 +1,900 Rebate -250 +200 Net -1,650 +1,750 Employers Gross -150 0 Rebate -500 +350
Estimated full-year effects of lower and upper earnings limits for class I national insurance contributions set at £86 and £645 perweek respectively in 1997–98 £ million LEL £86 UEL £645 Net +350 -350 Total Gross -2,000 +1,900 Rebate -700 +550 Net -1,300 +1,400 Notes:
1. Figures assume no change in the earnings brackets for employers' contributions.
2. Figures are rounded to the nearest £50 million; totals may not sum due to rounding.
Source:
Government Actuary's Department.
§ Mr. SteinbergTo ask the Secretary of State for Social Security if he will update the information in his answer to the hon. Member for Stratford-on-Avon (Mr. Howarth) of 2 July 1996,Official Report, column 411, on the value of unpaid national insurance contributions. [21057]
§ Mr. HealdThe information is not available in the format requested. Such information as is available is as follows.
A random survey of employers known to the Contributions Agency estimated that underpayments of class 1 national insurance contributions by employers for 1995–96 were £93 million. The survey was not undertaken for 1994–95 and no figures are available.
The self-employed pay class 2 and 4 contributions. Class 2 contributions are collected by the Contributions Agency by direct debit payments or in response to the issue of quarterly bills. Estimates of unpaid class 2 could be given only at disproportionate cost.
Class 4 contributions are collected by the Inland Revenue. The Inland Revenue accounts which were used to provide details in the reply to the hon. member for Stratford-on-Avon (Mr. Howarth) of 2 July 1996 have not yet been finalised and no later information is available.
§ Mr. SteinbergTo ask the Secretary of State for Social Security if he will estimate the effect on national insurance revenues of each(a) increase and (b) decrease of £1 up to £10, in the lower earnings limit for national insurance contributions. [21067]
§ Mr. HealdThe information is in the table.
The table shows the estimated full-year effects of a £10 increase or decrease of the lower earnings limit for class 1 national insurance contributions in 1997–98. The effects of smaller changes would be roughly pro rata.
899W
Estimated full-year effects of a £10 increase or decrease of the lower earnings limit for class 1 national insurance contributions in 1997–98 £ million LEL increased by £10 LEL decreased by £10 Employees Gross -800 +850 Rebate -100 +100 Net -700 +750
Estimated full-year effects of a £10 increase or decrease of the lower earnings limit for class 1 national insurance contributions in 1997–98 £ million LEL increased by £10 LEL decreased by £10 Employers Gross -50 +50 Rebate -200 +200 Net +150 -150 Total Gross -900 +900 Rebate -300 +300 Net -600 +300 Notes:
1. Figures assume no change in the earnings brackets for employers' contributions.
2. Figures are rounded to the nearest £50 million; totals may not sum due to rounding.
Source:
Government Actuary's Department.
§ Mr. SteinbergTo ask the Secretary of State for Social Security if he will update the information in his answer to the hon. Member for Islington, South and Finsbury (Mr. Smith) of 24 July 1996,Official Report, column 562, concerning the number of people paying voluntary class 3 national insurance contributions. [21090]
§ Mr. SteinbergTo ask the Secretary of State for Social Security if he will update the information in his answer to the hon. Member for Islington, South and Finsbury of 9 January 1996,Official Report, column 167, concerning estimated levels of contributions needed to achieve balance in the national insurance fund. [21093]
§ Mr. HealdThe requested information is in the table.
Estimated level of combined employer and employee contributions necessary to achieve balance in the national insurance fund Year Contribution level (main rates)3 (per cent.) 1996–971 19 1997–981 18.4 20252 16.9 20352 16.7 Notes:
1. Based on the estimates underlying the "Financial Statement and Budget Report 1997–98".
2. Based on the national insurance funded long-term financial estimates (Report by the Government Actuary on the third quinquennial review under section 137 of the Social Security Act 1975 (HC160–31 January 1995).
3. Estimate level (excluding employee and employer national health service allocations of 1.05 per cent. and 0.9 per cent. respectively) for there to be no Treasury grant and for the minimum level of the fund to be maintained at the recommendation one sixth of annual benefit expenditure.
Source:
Government Actuary's Department.
§ Mr. SteinbergTo ask the Secretary of State for Social Security if he will update the information in his answer to the hon. Member for Stratford-on-Avon (Mr. Howarth) of 2 July 1996,Official Report, column 411, on the 900W number of people in each year in receipt of national insurance credits; and if he will provide such figures for the years from 1979 to 1989. [21056]
§ Mr. HealdThe information in the tables.
Number of people claiming benefit due to medical incapacity(sickness benefit and incapacity benefit) receiving national insurance credits only (no benefit in payment): Great Britain Thousands Total claimants 2 June 19791 57 31 May 19801 66 30 May 19811 58 29 May 19821 76 2 April 19831 69 31 March 19841 57 30 March 19851 45 5 April 19861 59 4 April 19871 78 2 April 19881 110 1 April 19891 157 31 March 19901 205 30 March 19911 262 4 April 19921 320 3 April 19931 387 2 April 19941 440 12 April 19951 512 29 February 19962 580 30 November 19962 608 1 Figures taken from a 1 per cent. sample of all claims to sickness benefit in Great Britain. 2 Figures taken from a 5 per cent. sample of claims for incapacity benefit, excluding a small number of cases not held on the computer.
Number of unemployed claimants in receipt of national insurance credits only (Great Britain). Thousands Total claimants May 1979 188 May 1980 225 May 19811 — May 1982 390 May 1983 359 May 19841 — May 19851 — May 1986 469 May 1987 442 May 1988 374 May 1989 274 May 1990 220 May 1991 280 May 1992 313 May 1993 335 May 1994 281 May 1995 231 May 1996 206 Sources:
1. May 1994 and before: 100 per cent. count of unemployed claimants in Great Britain taken on the second Thursday of May.
2. From May 1995: 5 per cent. sample of unemployed claimants in Great Britain taken on the second Thursday of May.
Notes:
1. Figures not available due to industrial action.
2. Figures include a small number who will not receive credits, but cannot be identified separately.
901W
Number of people receiving at least one credit in the financial year given; by type of credit—Great Britain Thousands Financial year ICA credits Man aged between 60 and 64 1978–79 9 — 1979–80 9 — 1980–81 11 — 1981–82 12 — 1982–83 12 — 1983–84 11 1,437 1984–85 62 1,385 1985–86 68 1,332 1986–87 101 1,310 1987–88 118 1,294 1988–89 127 1,294 1989–90 142 1,301 1990–91 165 1,319 1991–92 194 1,337 1992–93 232 1,360 1993–94 275 1,356 1994–95 316 1,336 Source:
One per cent. sample of national insurance recording system taken at February 1996.
Notes:
1. National insurance credits for men aged between 60 and 64 were introduced in October 1983.
2. ICA = invalid care allowance.
§ Mr. SteinbergTo ask the Secretary of State for Social Security if he will update the information in his answer given to the hon. Member for Stratford-on-Avon, of 1 July 1996,Official Report, column 324, on the numbers in receipt of family credit and disability working allowance with earnings below the lower earnings limit for national insurance contributions. [21058]
Gross Class 1 National Insurance Contributions in Great Britain at 1996–97 prices £ billion 1996–97 2000–01 2010–11 2020–21 2030–31 (a) Employers Current Structure 29.0 36.4 44.4 51.7 57.8 (i) Extended to all earnings1 29.1 36.5 44.5 51.8 57.9 (ii) Extended to earnings below LEL1 29.1 36.5 44.5 51.8 57.9 (iii) Extended to earnings above UEL2 29.0 36.4 44.4 51.7 57.8 (b) Employees Current Structure 21.9 26.9 30.8 33.2 33.9 (i) Extended to all earnings3,4 25.3 32.7 39.7 46.4 555.9 (ii) Extended to earnings below LEL3 22.0 27.0 30.9 33.3 533.9 (iii) Extended to earnings above UEL4 25.2 32.6 39.6 46.3 51.9 Notes:
1. Assumes the current 3 per cent. contribution rate would apply to earnings below the lower earnings limit.
2. There is no upper earnings limit on employers' contributions.
3. Assumes the current 2 per cent. contribution rate would apply to earnings below the lower earnings limit.
4. Assumes the current 10 per cent. contribution rate would apply to earnings above the upper earnings limit.
5. The additional yield from contributions on earnings below the lower earnings limit is estimated to be negligible.
6. The figures for 2000–01 and later years are based on the assumptions contained in the "National Insurance Fund Long Term Financial Estimates" (HC160) published in January 1995. All figures exclude the effects of contracted-out rebates.
Source:
Government Actuary's Department.
902W
§ Mr. HealdI refer the hon. Member to the reply I gave the hon. Member for Stratford-on-Avon on 25 February,Official Report, column 207.
§ Mr. SteinbergTo ask the Secretary of State for Social Security how many people have received payments under the earnings top up scheme to date; how many of these are employees; and what proportion have had earnings below the level of the lower earnings limit for national insurance contributions. [21068]
§ Mr. Roger EvansAt 28 February 9,000 awards of earnings top up had been made. Some 8,346 awards were to employees and, of these, 27 per cent. were to people with earnings below the lower earnings limit. These figures are provisional and based on a 100 per cent. count of the live cases at 28 February.
§ Mr. SteinbergTo ask the Secretary of State for Social Security what estimate he has made of the effect on the number of employees who(a) are paying national insurance contributions and (b) have earnings above the contribution ceiling of the change in indexation from earnings to prices of the national insurance contribution limits since 1979. [21091]
§ Mr. HealdIf the level of the basic retirement pension, to which the lower and upper limits for class 1 national insurance contributions are linked, had been uprated since 1980 in line with the higher or earnings or prices, an estimated 1.2 million fewer employees would be liable to pay contributions in 1997–98, and some 2.1 million fewer employees would have earnings above the upper earnings limit.
Source:
Government Actuary's Department.
§ Mr. SteinbergTo ask the Secretary of State for Social Security if he will update the information contained in the answer to the hon. Member for Bristol, East (Ms Corston) of 7 March 1996,Official Report, column 354, on national insurance contributions. [21101]
§ Mr. SteinbergTo ask the Secretary of State for Social Security if he will update the information in the answer to the hon. Member for Stratford on Avon of 26 June 1996,Official Report, column 176, on the cost of removing employer national insurance contributions below the lower earnings limit. [21059]
§ Mr. HealdIf 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 £5.2 billion.
Source:
Government Actuary's Department
§ Mr. SteinbergTo ask the Secretary of State for Social Security if he will update the information contained in the answer given to the hon. Member for Gordon (Mr. Bruce) of 26 March 1996,Official Report, column 559, on the cost of raising the lower earnings limit to the level of the personal tax allowance, giving figures also for employer contributions. [21103]
§ Mr. HealdThe information remains the most recent available and includes the effect on revenue from employers' NICs.
§ Mr. SteinbergTo ask the Secretary of State for Social Security if he will update the information contained in the answer given to the hon. Member for Birkenhead (Mr. Field) of 12 March 1996,Official Report, column 592, on national insurance revenues. [21102]
§ Mr. HealdThe information is in the table.
Year Employee national insurance rates1 (percentage) Estimated change in2 contribution revenue (£ million) 1996–97 2.0 — 10.0 — 1997–98 2.0 — 10.0 — Notes:
1 Not contracted-out rates shown.
2 Figures show the change in revenue for the tax year in which the change in contribution rate was made.
3 If the employees' contribution structure, rates and level of contracted-out rebates in force in 1979–80 had applied in 1996–97, employees would have paid about £5.5 billion less in national insurance contributions for that year; if they were to apply in 1997–98, employees would pay an estimated £6 billion less in national insurance contributions for that year.
Source:
Government Actuary's Department.
§ Mr. SteinbergTo ask the Secretary of State for Social Security what were(a) the amounts of national insurance contributions paid by (i) employers and (ii) employees and (b) any Exchequer supplement, and the proportion of the NI fund accounted for by each, in today's prices for each year since 1979; and what estimate he has made of future revenues. [21062]
§ Mr. SteinbergTo ask the Secretary of State for Social Security if he will update the information contained in the answer given to the hon. Member for Gordon of 26 March 1996,Official Report, column 559, on extending 904W employer national insurance contributions to taxable benefits in kind; and if he will provide figures for employee contributions. [21104]
§ Mr. HealdIt is estimated that extending employer national insurance contributions to those taxable benefits in kind not already subject to an employer charge would raise £250 million in 1997–98. Extending employee NICs to cover the same benefits in kind would yield a further £300 million a year.
Source:
Inland Revenue.