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National Insurance Contributions

Volume 87: debated on Monday 18 November 1985

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asked the Secretary of State for Social Services what was the number of persons excepted from paying national insurance contributions from self-employment due to having small earnings, in each of the years 1979–80, 1980–81, 1981–82, 1982–83, 1983–84, 1984–85 and the current year to date.

A count is made annually of the number of small earnings exceptions (SEEs) current in the last week of the contribution year. The latest available figures are:

YearNo. of SEEs
1979–8027,500
1980–8129,500
1981–8227,100
1982–8339,100
Due to the industrial action at the Department's Newcastle computer centre last year, the figures for 1983–84 and 1984–85 are not available.

asked the Secretary of State for Social Services if he will estimate the direct revenue effect in 1986–87 of changing the rates of class 1 national insurance contributions in all earnings bands by one percentage point; and if he will show separately the effect on employers' and employees' contributions.

On the assumptions set out in his report on the draft of the Social Security (Contributions, Re-rating) Order 1985 (Cmnd. 9672) the Government Actuary's estimates of the revenue effect of a one per cent. change in both the primary and secondary contribution rates are:

£ million
Employees' (primary) contributionsEmployers' (secondary) contributions
Band 13040
Band 27585
Band 31,190225
Band 41085

asked the Secretary of State for Social Services what assumptions were used by the Government

198319841985
Supplementary Benefits
Order books2,7502,1931,850
Girocheques3,6353,0033,024
Contributory Benefits
Short term benefit (sickness and invalidity benefit, maternity allowance and severe disablement benefit)
Order books352407621
Girocheques4,0553,5443,832

Actuary in preparing the autumn statement 1985 about the numbers of class 1 national insurance contributors in each of the earnings bands proposed for 1986–87, their aggregate earnings and about the proportion that are contracted out of the state earnings related pension scheme.