§ Mr. Dobson
asked the Secretary of State for Social Services what would be the extra revenue generated if the 272W earnings ceiling on class one national insurance contributions were abolished; and what extra costs would fall on (a) employees, (b) private sector employers and (c) public sector employers.
§ Dr. Boyson
On the assumption for 1984–85 used in Cmnd. 9092—"Report by Government Actuary on the draft of the Social Security (Contributions, Re-rating) Order 1983"—additional contributions due in respect of that tax year would cost employees £590 million. The cost to employers, excluding national insurance surcharge, would be £680 million. These estimates assume there would be no change to the band of earnings on which contracted out contributions would be payable. A split of the latter figure between public and private sector employers is not available, though it is estimated that roughly 30 per cent. of revenue from national insurance contributions is paid by the public sector.