§ Mr. Martin BellTo ask the Chancellor of the Exchequer if he will estimate the amount of additional revenue which would have been raised in 1997–98 if the upper earnings limit on national insurance contributions had been abolished. [25799]
§ Mr. DenhamI have been asked to reply.
Estimated additional revenue of some £3.7 billion would have been raised in respect of 1997–98 earnings if the Upper Earnings Limit on employees' Class 1 contributions had been removed for that year.
The figure assumes that the current 10 per cent. Class 1 contribution rate would apply to earnings above the present Upper Earnings Limit and that an Upper Earnings Limit would remain in place for the calculation of employee and employer contracted-out rebates.
Source:
Government Actuary's Department.
§ Mr. FallonTo ask the Chancellor of the Exchequer (1) how many people would pay more tax if the upper earnings limit on employees' national insurance contributions were increased to £30,145; [26205]
(2) how much extra revenue would be raised by increasing the upper earnings limit on employees' national insurance contributions to £30,145. [26206]
§ Mr. DenhamI have been asked to reply.
530WEstimated additional revenue of some £1.5 billion would be raised in a full year if the Upper Earnings Limit on employees' Class 1 contributions was increased from its present level to £30,145, and about 3.5 million people would become liable to pay more contributions.
The figures assume that the current 10 per cent. Class contribution rate would apply to earnings above the present Upper Earnings Limit and that the current Upper Earnings Limit would remain in place for the calculation of employee and employer contracted-out rebates.
Source:
Government Actuary's Department.