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National Insurance

Volume 127: debated on Friday 12 February 1988

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To ask the Secretary of State for Social Services what portion of national insurance contributions from the average family on average pay is attributable to the cost of the National Health Service.

In 1988–89, the NHS contribution from class 1 national insurance contributions will be 0·95 per cent. of earnings up to the upper earnings limit of £305 per week for all employees, and 0·8 per cent. of earnings for employers. The actual amount that the average family will pay will depend on their earnings, and whether one or both partners work. This NHS contribution will fund 13·2 per cent. of the gross cost of the NHS in Great Britain in 1987–88. The table provides the information.

Estimated Average amount of weekly National Insurance Contributions Paid to the NHS (couples with children) Great Britain 1988–89 (Employees Contribution)

Weekly Earnings (average)

NHS Contribution 0·9 per cent, of earnings

Total NIC (not contracted out)

Percentage of NIC Paid to NHS




One Earner Couples

Husband Working2802·6625·2010·6
Wife Working830·795·8113·6

Two Earner Couples:



Earnings figures are based on the 1985 family expenditure survey with earnings uprated to 1988–89 levels in line with the normal assumptions about the growth of average earnings.