Biography Chronology Home Search Speeches/Statements

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 9th December 1985.


Dr. McDonald Asked the Secretary of State for Social Services what would be the additional income in the 1986-87 financial year from abolishing the ceiling on national insurance contributions for the employed and self-employed.

Mr. Major If the upper earnings limit for employee's class 1 contributions and the upper profits limit for self-employed people's profit-related class 4 contributions were to be abolished in 1986-87, but the ceiling retained for the contracted-out rebate, the additional contribution revenue would be:

£680 million from employees

£80 million from self-employed people.

These figures are based on the same assumptions as Cmnd. 9672 (the report by the Government Actuary on the draft of the Social Security (Contributions, Re-Rating) Order 1985).