To ask the Secretary of State for Defence if he will estimate the revenue effect of reducing the national insurance charge by 0.5 per cent. for all those employed in or by the armed forces. [82752]

Based on figures for Financial Year 1999–2000, it is estimated that the revenue effect of reducing by 0.5 per cent. the National Insurance Charges for Armed Forces personnel, will be:

(a) Employees' National Insurance Charges—£16.9 million

(b) Employers' National Insurance Charges—£17.0 million.

Any other personnel employed in support of the Armed Forces—excepting MOD civil servants—are directly employed by contractors. Responsibility for the payment of National Insurance Charges therefore lies with the contractors concerned and not the Armed Forces.