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National Insurance Contributions

Volume 487: debated on Tuesday 10 February 2009

To ask the Chancellor of the Exchequer (1) what estimate he has made of the cost to the Exchequer of raising the earnings threshold on national insurance contributions to (a) £5,000, (b) £6,000 and (c) £7,000 and lowering the class one employee main rate of national insurance contributions to (i) five per cent., (ii) six per cent., (iii) seven per cent., (iv) eight per cent., (v) nine per cent. and (vi) 10 per cent. in 2009-10; (255689)

(2) what estimate he has made of the cost to the Exchequer of raising the upper earnings level on national insurance contributions to £45,000 and raising the class one employee additional rate to (a) two per cent., (b) three per cent., (c) four per cent., (d) five per cent. (e) six per cent., (f) seven per cent., (g) eight per cent. and (h) nine per cent. in 2009-10;

(3) what estimate he has made of the cost to the Exchequer of raising the upper earnings level on national insurance contributions to (a) £45,000, (b) £46,000, (c) £47,000, (d) £48,000, (e) £49,000, (f) £50,000, (g) £51,000, (h) £52,000, (i) £53,000, (j) £54,000 and (k) £55,000 and lowering the Class 1 employee main rate to (i) two per cent., (ii) three per cent., (iii) four per cent., (iv) five per cent., (v) six per cent., (vi) seven per cent., (vii) eight per cent., (viii) nine per cent and (ix) 10 per cent. in 2009-10;

(4) if he will estimate the cost to the Exchequer of raising the upper earnings level on national insurance contributions to (a) £45,000, (b) £46,000, (c) £47,000, (d) £48,000, (e) £49,000, (f) £50,000, (g) £51,000, (h) £52,000, (i) £53,000, (j) £54,000, and (k) £55,000 and raising the Class 1 employee main rate to (i) 12 per cent., (ii) 13 per cent., (iii) 14 per cent. and (iv) 15 per cent. in 2009-10.

The information requested is not available. The information available on the Exchequer effect of changes to national insurance contributions (NICs) rates and limits provides for costs estimates to be made where one variable, either NICs rates or limits, is altered. In scenarios involving the changing of both variables cost estimates cannot be derived as in these cases the margin of error would be excessive.

To ask the Chancellor of the Exchequer (1) what estimate he has made of the cost to the Exchequer of raising the Class 1 employee additional rate on national insurance contributions by (a) one percentage point, (b) two percentage points, (c) three percentage points, (d) four percentage points, (e) five percentage points, (f) six percentage points, (g) seven percentage points, (h) eight percentage points, (i) nine percentage points and (j) 10 percentage points in 2009-10; (255692)

(2) what estimate he has made of the cost to the Exchequer of raising the upper earnings level on national insurance contributions to (a) £45,000, (b) £46,000, (c) £47,000, (d) £48,000, (e) £49,000, (f) £50,000, (g) £51,000, (h) £52,000, (i) £53,000, (j) £54,000 and (k) £55,000 in 2009-10; and what estimate he has made of the cost of lowering the level to (i) £40,000, (ii) £41,000, (iii) £42,000 and (iv) £43,000 in 2009-10.

The Exchequer effect of changes in the Class 1 employee additional rate and to the upper earnings limit on national insurance contributions can be derived from table 1.6 ‘Direct effects of illustrative tax changes’ on the HM Revenue and Customs website at

http://www.hmrc.gov.uk/stats/tax_expenditures/tablel-6.pdf

The figures exclude any estimate of behavioural response.