Question to the HM Treasury:

To ask His Majesty's Government what estimate they have made of the revenue they would receive if National Insurance was paid by those aged over 65 with incomes over the threshold; and what assessment they have made of requiring those with incomes above the threshold to pay it.

Estimated figures of the cost of the National Insurance Contributions (NICs) exemption for those aged over 65 are published by HM Revenue and Customs in their Structural Tax Reliefs publication.

A condensed version of the table of interest has been copied below, showing estimated costs annually from 2018-19 until 2023-24.

Table: HMRC NICs Structural Cost Estimates by Financial Year

Financial Year NICs structural cost estimates (£ million)

2018-19 1,300

2019-20 1,200

2020-21 840

2021-22 1,200*

2022-23 1,200*

2023-24 1,100*

*Projected estimates based upon the 2019-20 Survey of Personal Incomes, projected in line with economic assumptions consistent with the Office for Budget Responsibility’s March 2023 Economic and Fiscal Outlook.

The estimated cost of this exemption does not represent the yield if this exemption were to be abolished as other behavioural responses, including a possible increase in State Pension expenditure, would be expected to substantially reduce the yield.