Mr Major’s Written Parliamentary Answer on National Insurance – 23 March 1987

Below is the text of Mr Major’s written Parliamentary Answer on National Insurance on 23rd March 1987.

Mr. Austin Mitchell Asked the Secretary of State for Social Services if he will estimate (i) the revenue effect to the National Insurance Fund of abolition of the upper earnings limit and (ii) the loss to the fund of counting personal allowances for income tax purposes against the employee’s liability to contributions.

Mr. Major [pursuant to his reply, 12 March 1987, c. 294–95]: If the upper earnings limit for employees’ class 1 contributions were removed, but retained for the contracted out rebate, then the National Insurance Fund’s income from National Insurance contributions would have been £690 million higher in 1986-87.

If all personal tax allowances, including the married man’s allowance, counted against the employee’s liability for National Insurance contributions, then the National Insurance Fund’s contribution income would have been about £3.75 billion lower in 1986-87.