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1979-1987 : Mr Major’s Written Parliamentary Answer on National Insurance Contributions

Below is the text of Mr Major's written Parliamentary Answer on National Insurance Contributions on 10th June 1986.


Dr. McDonald Asked the Secretary of State for Social Services what would be the increased revenue for class 1, 2 and 4 national insurance contributions in a full year at rates ruling in 1986-87 resulting from the abolition of the upper earnings limit for employee contributions and of the annual upper limit for class 4 contributions.

Mr. Major [pursuant to his reply, 5 June 1986]: If the upper earnings limit (UEL) for employees class 1 national insurance contributions (NICs) and the upper profits limit for class 4 NICs were abolished, but the UEL was retained for the contracting out rebate, the additional contribution revenue in a full year in 1986-87 terms would be £770 million and £210 million, respectively.

These figures have been calculated on the same basis as the report by the Government Actuary on the draft of the Social Security Benefits Uprating Order 1986 (Cmnd. 9789).