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Pensioners

Sir Andrew Bowden: To ask the Secretary of State for Social Security if he will list as a proportion of all pensioners those (a) pensioners, (b) single male pensioners aged under 75 years, (c) single female pensioners aged under 75 years, (d) single pensioners aged under 75 years, (e) pensioner couples aged under 75 years, (f) single male pensioners aged 75 years and over, (g) single female pensioners aged 75 years and over, (h) single pensioners aged 75 years and over and (i) pensioner couples where at least one partner is aged 75 years and over receiving income from savings; and if he will provide figures for the mean and median amount received for the latest year for which figures are available. [36258]

Mr. Heald: The information is in the table.

	Proportion with investment income (per cent.)	Mean amount for those in receipt (£ per week)	Median amount for those in receipt (£ per week)
All pensioner units	73	37.40	8.70
Single male pensioners under 75	65	51.00	15.80
Single female pensioners under 75	70	29.40	5.90
Single pensioners under 75	69	33.90	7.40
Pensioner couples with head under 75	83	52.80	15.90
Single male pensioners 75 and over	73	38.10	6.50
Single female pensioners 75 and over	65	18.50	3.60
Single pensioners 75 and over	67	22.60	4.40
Pensioner couples with head over 75	80	42.70	11.30

Notes:

1. These results are based on a relatively small sample size. Therefore they should be treated with a higher degree of caution than usual.

2. All amounts are in July 1993 prices.

3. Proportions are rounded to the nearest whole percentage, amounts are rounded to the nearest 10p.

4. A pensioner unit is defined as a single pensioner over State Pension Age (SPA) and a couple where the husband, or head, is over SPA. To provide consistency the age of the head has been used to define the age of the couple.

Source:

Information is based on the Family Expenditure Survey 1993.

24 Jul 1996 : Column: 561

National Insurance

Mr. Alan Howarth: To ask the Secretary of State for Social Security how many employers have qualified for exemption from national insurance contributions and how many qualifying employees were previously (a) unemployed, (b) on a training scheme, (c) carers and (d) lone parents. [36902]

Mr. Heald: From 6 April 1996 to 9 July 1996, the Contributions Agency issued 398 national insurance holiday deduction certificates to employers ¹ . Of the 398 qualifying employees, 381 were unemployed ² , three were carers and 14 were lone parents.

Notes:
¹ The Contributions Agency has recorded 336 employers as having received one or more national insurance holiday deduction certificates. The numbers are less than the number of qualifying employees due to a combination of a short delay in recording employer details after the Contributions Agency has issued a certificate and because an employer may have taken on more than one qualifying employee.
² Includes people on a training scheme who are not identified separately for these purposes.

Mr. Soley: To ask the Secretary of State for Social Security if he will estimate the effect on national insurance fund revenues in a full year of levying (a) a 2 per cent. employee contribution rate and (b) a 3 per cent. employer contribution rate on the earnings of employees with total earnings currently below the NIC lower earnings limit. [37595]

Mr. Heald: The estimated effects on national insurance fund revenue for 1997-98 are:

+ £ 95 million and + £100 million respectively.
Source:
Government Actuary's Department.

Mr. Chris Smith: To ask the Secretary of State for Social Security (1) if he will list the number of people paying voluntary class 3 national insurance contributions for the most recent available year, and the number of these

24 Jul 1996 : Column: 562

who are employed earners with earnings below the national insurance lower earnings limit, breaking the figures down by gender; [37594]

(2) pursuant to his answer of 2 July, Official Report, column 418, if he will estimate the number of (a) men and (b) women with earnings below the lower earnings limit for national insurance contributions who pay voluntary class 3 NICs. [37586]

Mr. Heald: The information is not available in the format requested. Such information as is available is as follows.

Number of people paying voluntary class 3 contributions for 1993-94

	Number
Men	111,000
Women	70,000
Total	181,000

Source:

One per cent. sample of national insurance records at February 1995. Figures are rounded to the nearest thousand.

Ms Corston: To ask the Secretary of State for Social Security what would be total contribution income for national insurance for 1995-96, 2000-01, 2010-11, 2020-21 and 2030-31, assuming (a) present contribution rates, (b) upper and lower earnings levels linked with earnings and (c) upper and lower earnings levels linked with earnings and the upper earnings level raised by 200 per cent. of average earnings, relative to current estimates of expenditure on benefits in those years. [38543]

Mr. Heald: The available information is in the tables.

Table A: National Insurance Fund: estimated contribution income [£ billion at 1994-95 prices] at present contribution rates for 1994-95, 2000-01, 2010-11, 2020-21 and 2030-31 as a percentage of estimated benefit expenditure [£ billion at 1994-95 prices] for those years

Year	1994-95	2000-01	2010-11	2020-21	2030-31
Income	36.4	45.1	55.1	64.0	69.6
Expenditure	39.9	42.2	50.8	56.4	63.8
Income as a percentage of expenditure	91	107	109	113	109

Table B: National Insurance Fund: estimated contribution income [£ billion at 1994-95 prices], assuming upper and lower earnings limits for Class 1 contributions linked with earnings, for 1994-95, 2000-01, 2010-11, 2020-21 and 2030-31 as a percentage of estimated benefit expenditure [£ billion at 1994-95 prices] for those years

Year	1994-95	2000-01	2010-11	2020-21	2030-31
Income	36.4	45.2	54.9	64.6	71.8
Expenditure	39.9	42.2	50.8	56.4	63.8
Income as a percentage of expenditure	91	107	108	114	113

Table C: National Insurance Fund: estimated contribution income [£ billion at 1994-95 prices], assuming upper and lower earnings limits for Class 1 contributions linked with earnings and the upper earnings limit raised to 200 per cent. of average earnings, for 1994-95, 2000-01, 2010-11, 2020-21 and 2030-31 as a percentage of estimated benefit expenditure [£ billion at 1994-95 prices] for those years

Year	1994-95	2000-01	2010-11	2020-21	2030-31
Income	38.1	47.3	57.6	67.7	75.2
Expenditure	39.9	42.2	50.8	56.4	63.8
Income as a percentage of expenditure	96	112	113	120	118

Notes:

1. The information given in the tables has been derived from the Government Actuary's Reports on the Third Quinquennial Review under section 137 of the Social Security Act 1975 (HC 160) and on the Financial Provisions of the Pensions Bill 1994 (CM 2714) by:

adjusting the entries in table E3 and E4 of HC 160 so that the projected contribution income is based on a continuation of the 1994-95 combined Class 1 contribution rate (18.25%). Hence, the tables give information for 1994-95 rather than 1995-96;

adjusting contribution income for the years 2020-21 and 2030-31 to allow for the increased number of contributors expected as a result of the Pensions Act 1995;

adjusting the amounts of contracted-out rebate to allow for the difference between rebate rates assumed in HC 160 and those now expected.

2. For table (c), a further adjustment has been made to allow for the change in primary Class 1 contributions and rebates following from increasing the UEL to twice average earnings.

3. The estimated benefit expenditure information given in all three tables is that consistent with increasing the UEL and LEL in line with prices, even where (in tables (b) and (c)) the contribution income figures are based on increasing those limits in line with earnings, and allows for the effects of the Pensions Act 1995.

Source:

Government Actuary's Department.

24 Jul 1996 : Column: 563

Ms Corston: To ask the Secretary of State for Social Security what is the Government Actuary's estimate of the excess of national insurance contribution income over outgoings for 1995-96 and for 1994-95, assuming actual rates of unemployment, excluding the Treasury grant and (a) excluding and (b) including the effects of contracted-out rebates, using the methodology set out in Cm 2445. [38542]

Mr. Heald: The information is in the table.

£ billion

	1994-95	1995-96
(a) Excluding contracted-out rebates
Contributions income	43.3	45.7
Benefit outgo	39.3	40.6
Excess/(shortfall)	4.0	5.1
(b) Including contracted-out rebates
Contributions income	38.3	40.4
Benefit outgo	39.3	40.6
Personal pension rebates	2.0	2.0
Excess/(shortfall)	3.0	2.2

Source:

Government Actuary's Department.

Mr. Howarth: To ask the Secretary of State for Social Security what is his estimate of the impact on revenue of an increase in the upper earnings limit for national insurance contributions by average earnings for the years 1995-96 and 1996-97. [39006]

24 Jul 1996 : Column: 564

Mr. Heald: Raising the upper earnings limit for 1995-96 and 1996-97 in line with the movement in average earnings would increase national insurance contribution revenue for each of those years by an estimated £50 million ¹ .

Source:
Government Actuary's Department
Note: ¹ This figure has been calculated by comparing the effects on national insurance contribution revenue of:
(i) a UEL for 1995/96 derived by applying the September 1993 to September 1994 4 per cent. increase in seasonally adjusted average earnings for all employees in GB [Table 5.1 of Labour Market Trends] to the UEL for 1994/95; and
(ii) a UEL for 1996/97 derived by applying the September 1994 to September 1995 3.1 per cent. increase in seasonally adjusted average earnings for all employees in GB [Table 5.1 of Labour Market Trends] to the unrounded result of (i);
and the actual UELs for those years.

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