Question to the HM Treasury:

To ask Her Majesty's Government how much it would cost to raise the national insurance contributions threshold to an annual income of £12,570.

Estimates of various policy changes can be approximated using the ‘Direct effects of illustrative tax changes’ publication which can be found on gov.uk.

This includes the costs of increasing National Insurance contributions (NIC) thresholds for the employee entry threshold by £2 per week and lower profit limits by £104 per year.

This can be used to scale the proportionate costs using the projected NIC threshold in 2022-23, which at the time of publication was £9,724, and increasing it by £2,846 to £12,570 in that year.

Published estimates are based on the 2017-18 Survey of Personal Incomes, which are projected using economic assumptions consistent with the Office for Budget Responsibility’s March 2021 economic and fiscal outlook.