National Insurance: Earnings Threshold

House of Lords written question – answered at on 14 February 2006.

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Photo of Lord Forsyth of Drumlean Lord Forsyth of Drumlean Conservative

asked Her Majesty's Government:

For the latest year for which figures are available, what assessment they have made of the number of people who during the relevant tax year for the purpose of determining their national insurance contributions have different employments which fall below the earnings threshold.

Photo of Lord McKenzie of Luton Lord McKenzie of Luton Government Whip, Government Whip

Estimates for the numbers of people with income below the primary threshold for spring (March-May) 2005 are provided in the table.

Employees (thousands) All
Total employees in main job 24,380
Total employees in main job and earning below the primary threshold 2,430
Total employees with at least two jobs 560
Total employees with at least two jobs and earning below the primary threshold in each job 410

The estimates have been provided by the Office for National Statistics, and are based on the quarterly Labour Force Survey.

Estimates on employees earning below the primary threshold are based on gross weekly earnings as reported in the survey. These figures represent a snapshot and are not seasonally adjusted.

Because of the higher weekly earnings variability for employees with low wages, caution should be exercised when interpreting earnings information for employees at the lower end of the distribution.

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