§ Mr. GibbTo ask the Chancellor of the Exchequer how much it would cost the Exchequer to reduce the rate of employers' national insurance contributions to(a) 10 per cent., (b) 7.5 per cent., (c) 5 per cent., (d) 2.5 per cent. and (e) 0 per cent. for (i) employees aged 16 to 25, (ii) employees aged 26 to 40, (iii) employees aged 40 to 49, (iv) employees aged 50 plus years and (v) all employees. [124523]
§ Dawn PrimaroloThe full year exchequer costs in 2001–02 for making the various reductions in the rate of employers' National Insurance contributions (NICs) for different age groups are set out in the table.
75W
Exchequer cost £ million Reduce employers NIC's rate to: 2001–02 10% 7.5% 5% 2.5% 0% Secondary Class 1 Age Range: 16 to 25 430 1,010 1,580 2,150 2,720 26 to 39 2,520 5,830 9,130 12,440 15,750 40 to 49 1,810 4,200 6,590 8,980 11,360 50 and over 1,570 3,630 5,690 7,750 9,810 Secondary Class 1—all ages 6,330 14,660 22,990 31,320 39,640 Class 1a and 1b all ages 220 520 810 1,110 1,400 Total 6,550 15,180 23,800 32,430 41,050 The estimates are consistent with the March 2000 Budget and rounded to the nearest £10 million.
It is not possible to provide reliable estimates for class 1a or class 1b by age range.