---

National Insurance Contributions Bill

The hon. Gentleman is right: increasing the upper earnings limit for national insurance by £75 a week above indexation from April 2008 raises £1.5 billion, when one adds in the fact that, from April 2009, it will be fully aligned with the higher rate threshold. My point is that taken overall, the simplification package is a serious, significant step forward. In particular, it allows us to target our assistance on people on the lowest incomes, and on households in the greatest need of support. I give way now to the hon. Member for Northavon (Steve Webb), who I was rather hoping would not be present for the debate, as he is one of those who knows the subject inside out and backwards.