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Self-Employed Persons(Reclassification)

Volume 959: debated on Monday 4 December 1978

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asked the Secretary of State for Social Services what is the total number of staff in his Department currently engaged on reclassification of self-employed as employees; and at what cost.

No staff in my Department are engaged specifically in reclassifying self-employed earners as employed earners. Indeed, if they are properly self-employed earners under the Social Security Act 1975 and regulations made under it, there is no question of classifying them as otherwise. The class of contribution a person is liable to pay under the Act depends upon the conditions of his particular employment and the Department investigates cases where the category is in doubt. This work forms a small part of the duties of some two thousand inspectors and of a small number of staff in regional offices. Categorisation policy and cases of difficulty are dealt with by about a dozen staff at headquarters. It is not possible to isolate the cost of this particular aspect of contributions work.

asked the Secretary of State for Social Services (1) how many employers have appealed to him in each of the last five years for which figures are available against a decision by a local Department of Health and Social Security office to reclassify a self-employed person as an employee; and in how many such cases the employer or contractor has been successful;(2) what was the total amount of back class 1 national insurance contributions paid to his Department by employers in situations where self-employed subcontractors had been reclassified as employees in each of the last five years for which figures are available;(3) what was the total number of self-employed people classified as employees by his Department in each of the last five years for which figures are available.

Detailed information of the type asked for is not available; and to

TABLE 1:
NET WEEKLY SPENDING POWER (£) OF A SINGLE MOTHER WITH 2 CHILDREN, AGED 4 AND 6; RECEIVING SUPPLEMENTARY ALLOWANCE AND EARNING £6 A WEEK
Supplementary allowanceChild benefitNet earningsRentRatesFree school mealsFree welfare milkNet weekly spending power
25·908·006·006·302·351·250·9533·45
TABLE 2:
NET WEEKLY SPENDING POWER (£) OF A SINGLE MOTHER WORKING FULL-TIME WITH £10 WORK EXPENSES.
SAME FAMILY CONSTITUTION AND RENT/RATES
Gross earningsTaxN.I.Child benefitF.I.S.Rent rebateRate rebateWork expensesFree school mealsFree welfare milkNet weekly spending power
23·641·548·0011·506·132·1610·001·250·9533·44
30·001·958·0010·004·921·7710·001·250·9536·29
35·000·412·288·007·504·291·5710·001·250·9537·22
40·001·662·608·005·003·701·3810·001·250·9537·37
45·002·912·938·002·503·281·2310·001·250·9537·72
50·004·353·258·002·851·0810·001·2536·93
55·006·003·588·002·000·7810·001·2538·80
60·007·653·908·001·150·4810·001·2540·69
66·009·634·298·000·1210·001·2542·80
68·0010·294·428·0010·001·2543·89
86·0016·235·598·0010·001·2554·78
87·0016·565·668·0010·0054·13

Notes:

N.I. = National insurance contribution at the contracted- in rate.

F.I.S. = Family Income Supplement.

the extent that it could be obtained, this could be achieved only at disproportionate cost.