HC Deb 16 March 2004 vol 419 cc166-7W
Ms Drown

To ask the Chancellor of the Exchequer pursuant to the answer of 23 February 2004,Official Report, columns 112–13W, on National Insurance, what the cost to the Treasury would be in each case. [161544]

Dawn Primarolo

A reduction in the lower earnings limit would not increase revenue from contributions, but would increase the future cost of paying contributory benefits and the cost of contracted-out rebates. I regret that it would be possible to quantify this only at disproportionate cost.

Mr. Denham

To ask the Chancellor of the Exchequer how many individuals pay self-employed National Insurance contributions. [161633]

Dawn Primarolo

I refer my right hon. Friend to table 10.2 of the Annual Abstract, which can be found on the ONS website www.statistics.gov.uk/downloads/theme_compendia/Aa2004/AA20Q 4.pdf.

Mr. Denham

To ask the Chancellor of the Exchequer if he will estimate the change in payments to the National Insurance Fund that would accrue if all those paying self-employed National Insurance contributions paid at the employed rate in 2003–04. [161634]

Dawn Primarolo

The Government Actuary's Department estimates that if Class 4 contributions were paid at the Class 1 employee rate of 11 per cent. on profits, between the Lower Profits Limit and the Upper Profits Limit, and 1 per cent. on profits above the Upper Profits Limit, that the increase in National Insurance contribution accruals for the UK in 2003–04 would be £590 million. This estimate assumes that Class 1 contributions paid by the employer and Class 2 would not be paid.