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National Insurance Contributions

Volume 281: debated on Wednesday 17 July 1996

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To ask the Secretary of State for Social Security if he will estimate the effect on public revenues in a full year of (a) abolishing the 2 per cent. employee national insurance contribution on earnings below the lower earnings limit, (b) levying a 2 per cent. employee contribution on all earnings below the lower earnings limit and (c) levying employer contributions at 3 per cent. on the wages of employees earning less than the lower earnings limit. [34790]

The estimated effects on national insurance contribution revenue for 1997–98 are:

  • (a) -£1.200 billion
  • (b) +£0.095 billion
  • (c) +£0.145 billion.
  • Source:

    Government Actuary's Department.