HL Deb 16 March 2004 vol 659 cc34-5WA
Baroness Byford

asked Her Majesty's Government:

Following the suspension in 1997 of the issue of deficiency notes for national insurance contributions, whether a system has been put in place to ensure that the suspension of the service will not occur in the future. [HL1726]

Lord McIntosh of Haringey

In October 2003 the Inland Revenue started writing to people who would have received a deficiency notice for the years since they were suspended in 1998. From the end of 2004 the normal cycle of annual deficiency notices will resume. The recommendations from the Paymaster General's internal review of the suspension have been implemented as the Paymaster General reported in her Written Statement to the House of Commons on 18 June 2003 (cols. 10–12WS).

Baroness Byford

asked Her Majesty's Government:

Following the suspension in 1997 of the issue of deficiency notices for National Insurance contributions, whether those of working age who have been affected in the subsequent six years will be eligible for any amelioration of the normal rules governing top-up payments. [HL1727]

Lord McIntosh of Haringey

The Inland Revenue is currently writing to people who would have received a deficiency notice for the years since they were suspended in 1998. The letter gives them the opportunity to make up for any shortfalls in their National Insurance record. The ameliorations for the affected years (1996–97 to 2001–02) are:

  • people have as much time to pay as they would have if the letters had been sent out on time. Currently the deadline for payment is 5 April 2008.
  • they may pay the voluntary contributions at the original rate. Normally these would be charged at the highest rate for Class 3 in force at the time the payment is made, but this rule is not being applied for these years.

Baroness Byford

asked Her Majesty's Government:

Further to the suspension in 1997 of the issue of deficiency notices for National Insurance contributions, how many have still so far been issued to warn those of working age of the deficiencies; how many have still to be issued; and whether the target completion date of June 2004 is likely to be met. [HL1760]

Lord McIntosh of Haringey

On 27 October 2003 the Inland Revenue started writing to those who would have received a deficiency notice for the years since they were suspended in 1998. As of 5 March 2004, nearly 1.8 million of the 10.2 million letters had been issued. It is anticipated that the exercise will be completed by around September 2004, as set out in the Inland Revenue's announcement on its website on 19 September 2003. There has never been a target date of June 2004.

Baroness Byford

asked Her Majesty's Government:

Further to the suspension in 1997 of the issue of deficiency notices for National Insurance contributions (NICs), whether those who have retired since 1997 with one or more incomplete years of NICs will be credited with the contributions which they made in each of those incomplete years. [HL1761]

Lord McIntosh of Haringey

The Department for Work and Pensions will be writing to people who reached state pension age after the issue of deficiency notices was suspended in 1998. If they have less than a full basic state pension, they will be offered the opportunity to improve the amount of their pension by making voluntary contributions for any non-qualifying years since the suspension and before they reached state pension age.