National Insurance

Treasury written question – answered on 7th November 2001.

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Photo of Lynne Jones Lynne Jones Labour, Birmingham, Selly Oak

To ask the Chancellor of the Exchequer how many employees have been paying national insurance contributions in each year since 1995.

Photo of Dawn Primarolo Dawn Primarolo Paymaster General (HM Treasury)

Estimates for the number of UK employees paying national insurance contributions (NICs) are given in the table.

Million
Estimated number of employees paying NICs
1995–96 22.1
1996–97 22.6
1997–98 22.8
1998–99 23.6
1999–2000 24.1
2000–01 n/a

These estimates are based on the national insurance recording system. I regret that information is not yet sufficiently complete for 2000–01 to provide a reliable estimate.

This series reflects the increasing number of people in work who earn more than the lower earnings limit.

For 2000–01 and 2001–02, there should be a reduction in the number of employees paying NICs as the starting point for paying NICs has been increased and aligned with the income tax personal allowance. The benefit entitlement of employees who no longer pay NICs because of this change has been protected.

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