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National Insurance: Rebates

Volume 462: debated on Thursday 28 June 2007

To ask the Chancellor of the Exchequer what estimate he has made of the cost to the Exchequer in each year from 2007-08 to 2011-12 of implementing in full the advice of the Government Actuary’s Department on the level of national insurance rebates for contracted out pensions from 1 April 2007; and if he will make a statement. (144116)

I have been asked to reply.

National insurance rebates are paid from the National Insurance Fund. The effect on national insurance revenues that would arise from implementing in full the Government Actuary’s advice for rebates from 6 April 2007 is broadly neutral over the longer term for schemes contracted out on a defined contribution basis. For schemes contracted out on a defined benefit basis, it would mean increasing estimated total expenditure on rebates between 2007-08 to 2011-12 by around 9.4 per cent.