asked the Secretary of State for Social Services (1) if he will provide the fullest available information on the income levels of those paying class 4 national insurance contributions for each year since 1979;(2) if he will provide the best available estimate of the numbers of individuals paying class 4 national insurance contributions for each year from 1957 to the latest available date.
Class 4 contributions have been payable only since the 1975–76 tax year. Information on the actual number of class 4 contributors is not available but the estimates shown which have been derived from the Inland Revenue's income survey, give a good indication of the numbers involved. They will contain some over-statement—which is unlikely to be substantial—as they include those not liable to pay class 4 contributions because of being over retirement age or of being concurrently employed as employed earners and paying the maximum national insurance in class 1 and class 2 contributions.
People with income from self-employment greater than the lower profits limit for Class 4 National Insurance Contributions (Thousands) (United Kingdom)
| ||||||||||
1975–76
| 1976–77
| 1977–78
| 1978–79
| 1979–80
| 1980–81
| 1981–82
| 1982–83
| 1983–84
| 1984–85
| |
| Lower profits limit for class 4 contributions | £1,600 | £1,600 | £1,750 | £2,000 | £2,250 | £2,650 | £3,150 | £3,450 | £3,800 | £3,950 |
Ranges of self-employment income
| ||||||||||
| Lower profits limit to £4,999 | — | — | — | — | 800 | 639 | 468 | 401 | 315 | 280 |
| £5,000 to £9,999 | — | — | — | — | 351 | 429 | 491 | 593 | 684 | 788 |
| £10,000 to £14,999 | — | — | — | — | 129 | 111 | 125 | 141 | 178 | 222 |
| £15,000 to £19,999 | — | — | — | — | — | 44 | 59 | 67 | 74 | 98 |
| £20,000 to £24,999 | — | — | — | — | 30 | 20 | 27 | 38 | 52 | 61 |
| over £25,000 | — | — | — | — | — | 27 | 39 | 47 | 63 | 83 |
| Total numbers with income above the lower profits limits | 1,030 | 1,180 | 1,200 | 1,270 | 1,310 | 1,270 | 1,210 | 1,290 | 1,370 | 1,530 |
Notes:
asked the Secretary of State for Social Services if he will bring up to date for the year 1987–88 the information given in his answer of 10 December, Official Report, column 204, to the hon. Member for Great Grimsby concerning the distribution of incomes and national insurance contributions, adding (a) the saving on the abolition of the reduced rate contribution and (b) the numbers contracted-in and contracted-out together with their contributions.
I shall let the hon. Member have a reply as soon as possible.
asked the Secretary of State for Social Services whether he will publish in the Official Report a table showing his forecast for 1987–88 of the number of class 2 and class 4 contributions for men and women together with the forecast revenue in each case.
The information is as follows:
| 1987–88 Great Britain | |
| Class 2 | |
| Number of contributors (thousands) | |
| Men | 1,900 |
| Women | 200 |
| Contributions Payable (£ million) | |
| Men | 360 |
| Women | 40 |
asked the Secretary of State for Social Services whether he will publish in the Official Report the number of females expected to qualify for the reduced rate of national insurance in the next financial year in return for reduced benefits, the amounts of revenue forgone as a result of this concession and the estimated cost if the recipients were able to claim full benefit.
It is expected that during 1987–88 an average of 1·1 million females in Great Britain will be paying class 1 national insurance at the reduced rate for widows and married women. It is estimated that the full year cost of this concession (in 1987–88) in terms of lower contribution revenue will be £200 million. It is impossible to estimate reliably the additional benefit expenditure if those paying reduced rate contributions could claim full benefit.
asked the Secretary of State for Social Services whether he will publish in the Official Report a table giving an estimated breakdown for 1987–88 of national insurance contributions on the same basis as in table 40.13 of "Social Security Statistics 1985", together with the appropriate contribution for employees and their employers, and his estimate of the revenue therefrom in each case.
Information in the form requested is not available as the Government Actuary does not estimate the number of people paying national insurance contributions on the same basis as in table 40.13 published in "Social Security Statistics 1985". The following information is available:
| Estimated Average Number of Contributors 1987–88 Great Britain | |||
| (Thousands) | |||
| Men | Women | Total | |
| Class 1 Standard Rate | |||
| Contracted out | 6,300 | 2,800 | 9,100 |
| Not Contracted out | 5,100 | 3,900 | 9,000 |
| Class 1 Reduced Rate | — | 1,100 | 1,100 |
| Class 2 | 1,900 | 200 | 2,100 |
| Class 3 | 95 | 30 | 125 |
Estimated contributions payable in 1987–88 Great Britain
| |||||||
£ million
| |||||||
Men
| Women
| Total
| |||||
Primary
| Secondary
| Primary
| Secondary
| Primary
| Secondary
| Total
| |
| Class 1 Standard Rate | |||||||
| Contracted Out | 5,100 | 5,500 | 1,600 | 1,500 | 6,700 | 7,000 | 13,700 |
| Not Contracted Out | 4,100 | 5,100 | 1,500 | 1,600 | 5,600 | 6,700 | 12,300 |
| Class 1 Reduced Rate | — | — | 200 | 400 | 200 | 400 | 600 |
| Class 2 | 360 | 40 | 400 | ||||
| Class 3 | 20 | 5 | 25 | ||||
Notes:
asked the Secretary of State for Social Services what is the estimated cost of a reduction of one percentage point in the employee's and the employer's national insurance contribution in 1987–88; and if he will publish in the Official Report a table showing for each year since 1957 the rate of contribution in each case as a percentage of average earnings, together with the standard rate of income tax on earned income.
It is estimated that a reduction of one percentage point in the rates of national insurance contributions in 1987–88 will cost for the full year £1,590 million in respect of employees' contributions, and £1,770 million in respect of employers' contributions.I shall answer the remainder of the hon. Member's question as soon as possible.