Skip to main content

Proceeding contribution from Paul Rowen (Liberal Democrat) in the House of Commons on Monday, 17 December 2007. It occurred during Debate on bill on National Insurance Contributions Bill.


National Insurance Contributions Bill

It is easy to say that, but I am not sure whether having such a straightforward system right at the beginning would work. My understanding of the principle of the contributory system is that it has always been graduated up to a point. We support the Bill's attempt to align the upper earnings limit with the national insurance contribution. The difficulty that I have, however, is that, rather than saying that this is about equalising and, yes, raising more income to be used for other purposes—which we find fair and reasonable—the Government are dressing the measure up as a simplification. It is a simplification, but it also means that some high and middle income earners will be paying more money. That is fair and reasonable, and we do not object to it, but I wish that the Government would just be straight with us and admit that that is what will happen. That was certainly not what the Chancellor said in his statement; he did not admit that that was one of the purposes of the Bill.


Secondary information

Type
Proceeding contribution
Reference
469 c647-8 
Session
2007-08
Chamber / Committee
House of Commons chamber
Subjects
Income tax National insurance Personal income Poverty National insurance contributions State retirement pensions Tax rates and bands
Legislation
National Insurance Contributions Bill 2007-08
Link
View this Proceeding contribution on www.publications.parliament.uk