Question to the HM Treasury:

To ask Her Majesty's Government how much revenue they estimate would be raised if a national insurance surcharge of one per cent were applied to the employment, rental, savings, and pensions income of those below retirement age.

This question was answered on 29th March 2018

The revenue raised from increasing Class 1 national insurance rates on employment income by 1% may be approximated using the “Direct effects of illustrative tax changes”¹.

This shows the yield from a change in the Class 1 employee main rate by 1 percentage point and the Class 1 employee additional rate by 1 percent point in 2018-19 through to 2020-21.

(£m)	2018-19	2019-20	2020-21
Change Class 1 employee main rate by 1 percent point	4050	4200	4300
Change Class 1 employee additional rate by 1 percent point	890	910	940

1. Extract of the table as published at the following address: https://www.gov.uk/government/statistics/direct-effects-of-illustrative-tax-changes

An estimate of the impact of introducing a NICs charge for those over state pension age or a surcharge for those below state pension age on rental, savings, and pensions income is not available. National Insurance is not currently payable on these income streams and therefore a number of policy design decisions would need to be taken in order to estimate how much would be raised from introducing such a charge.