§ Mr. Nicholas Brown
To ask the Secretary of State for Social Security what is the estimated full year revenue effect in 1990–91 and 1991–92 of(a) abolishing the upper earnings limit for employees' national insurance contributions, (b) allowing personal allowances against such contributions and (c) (a) and (b) together.485W
§ Mr. Jack
[holding answer 21 January 1991]: The revenue effects of the measures described are estimated to be as follows:
National insurance contribution revenue effect 1990–91 £ billion 1991–92 £ billion (a) +2.5 +2.5 (b) -1.5 -1.5 (c) +1.0 +1.0
The estimates assume a contribution-free band of employees' earnings up to a lower earnings limit equivalent to a single person's income tax allowance and a 9 per cent. contribution rate on earnings above that limit.