HC Deb 17 December 1998 vol 322 cc713-4W
Mr. Cousins

To ask the Secretary of State for Social Security how much is planned to be spent up to 1 April 1999 on the online national insurance contribution records system; and how much has been planned for the next three year period. [64417]

Mr. Timms

If the supplier were to process anticipated volumes, the NIRS2 budget for the financial year to 1 April 1999 would be £5.301 million. The base annual service charge for NIRS2 over the next three years is budgeted at £6.850 million per annum. This amount is subject to volumes of work processed and also any charges for agreed enhancements to the system.

Mr. Cousins

To ask the Secretary of State for Social Security if he will list the implementation milestones with their dates for the online national insurance contribution records system; and to what extent these have been achieved to date. [64420]

Mr. Timms

The original contract allowed for the delivery of the National Insurance Recording System over three releases between February 1997 and April 1999. A subsequent Deed of Amendment was agreed in July 1996, which allowed for a phased delivery of the first release. Although incorporating the original timeframe, the phasing of delivery between those dates was significantly altered.Release 1a. The contractual delivery date of 10 February 1997 was achieved. Release 1b. The original contractual date of 27 October 1997 was not achieved. Delivery took place on the 28 January 1998. Release 1c. The original contractual date of 6 April 1998 was not achieved. Part of the service was delivered on the 13 July 1998, and final acceptance took place on the 28 August 1998. Release 2/3. Contractual delivery date is the 6 April 1999, and this is currently on target.

Mr. Hancock

To ask the Secretary of State for Social Security what is his estimate of the number of people currently working who have not paid sufficient national insurance contributions to qualify for incapacity benefit. [64222]

Mr. Timms

The information is not available in the form requested. The latest available information is that the number of people working and paying National Insurance contributions who had not paid sufficient contributions to qualify for Incapacity Benefit in 1997 was about 4.4 million. In addition, the Family Resources Survey estimates that there are about 2 million employees who earn below the lower earnings limit at any one time and therefore would not pay National Insurance contributions.

Notes:

1. Figures come from different data sources and should not be aggregated.

2. To qualify for Incapacity Benefit, a claimant must have paid Class 1 and/or Class 2 National Insurance contributions on earnings equivalent to 25 times the lower earnings limit in any tax year prior to the benefit claim year and have Class 1 and/or Class 2 NICs and/or NI Credits equivalent to 50 times the lower earnings limit (LEL) in each of the two previous tax years prior to the benefit claim year.

3. Latest information relates to the benefit year 1997 for which the latest relevant tax year is 1995/96.

Sources:

1. DSS: Lifetime Labour Market Database which contains a 1 per cent. sample from the National Insurance Recording System (NIRS) taken at February 1997.

2. Family Resources Survey for the estimate of employees who are earning below the lower earnings limit.