HC Deb 06 May 2004 vol 420 cc1738-9W
Mr. Webb

To ask the Chancellor of the Exchequer if he will estimate the effect on revenue from employee national insurance contributions (NICs) if the rate of NICs for employees who are not contracted out of the state second pension were to be reduced to the rate currently paid by employees who are contracted out. [171034]

Ruth Kelly

[holding answer 5 May 2004]The Government Actuary's Department estimates that rebates worth £1.9 billion would be accrued if all contracted-in employees were to pay national insurance contributions that were reduced by 1.6 per cent. of earnings between the lower earnings limit and upper earnings limit in 2004–05. This estimate excludes the additional age-related or employer rebates that would be paid for a contracted-out person.

Norman Lamb

To ask the Chancellor of the Exchequer what checks are made on the national insurance numbers used by employment agencies and gangmasters; what action is taken if a non-valid national insurance number is being used for an individual employed by an agency or a gangmaster; and if he will make a statement. [171050]

Ruth Kelly

The Inland Revenue check the validity of national insurance numbers which are notified to them by an employer (including as appropriate gangmasters or employment agencies) when a new employee joins, and at the end of each tax year as part of the employer's annual return. Where a non-valid national insurance number has been used, the Inland Revenue will attempt to trace a valid number for the individual involved. Where this cannot be done, the Inland Revenue will write to the employer asking him to provide a valid national insurance number for that employee.

Forward to