§ Mr. PondTo ask the Secretary of State for Social Security if he will estimate the increase in revenue to the Exchequer in the financial year 1999–2000 as a result of(a) raising the upper earnings limit on employee national 479W insurance contributions to £602 per week and (b) removing the upper earnings limit on employee national insurance contributions altogether. [74396]
§ Mr. TimmsEstimated additional revenue of some £1.8 billion would be raised in 1999–2000 if the Upper Earnings Limit on employees' Class 1 contributions was increased from its present level to the same level as the threshold of higher rate income tax, which is to be set at £622 a week from April 1999. If the Upper Earnings Limit was removed, the estimated additional revenue raised would be £4.2 billion for that year.
The figures assume that the current 10 per cent. Class 1 contribution rate would apply to earnings above the present Upper Earnings Limit, and that this limit would remain in place for the calculation of employee and employer contracted-out rebates.
§ Mr. MacleanTo ask the Secretary of State for Social Security if he will estimate the number of employees who will pay higher national insurance contributions as a result of the increase of the upper limit in(a) the standard rate and (b) the contracted out rate of national insurance contributions. [76454]
§ Mr. TimmsThe information is in the table.
Estimated average weekly numbers of employees in Great Britain who will pay more National Insurance Contributions following the increase of the upper earnings limit to £535 per week from April 2000 and to £575 per week from April 2001 2000–01 2001–02 Contracted in employees 1,400,000 1,380,000 Contracted out employees 2,500,000 2,460,000 All employees 3,900,000 3,850,000 Note:
Rounded to the nearest ten thousand
Source:
Government Actuary's Department