TaxPersonal TaxNI for pensioners ‘would raise £500m a year’

NI for pensioners 'would raise £500m a year'

Government confirms figure following debate over paying for elderly care

AROUND £500m would be raised in 2011/12 if pensioners were required to pay National Insurance contributions, the government has said.

In a parliamentary answer on 9 September, Financial secretary to the Treasury Mark Hoban (pictured) revealed the £500m figure, which was based on the 2007-08 Survey of Personal Incomes and economic assumptions made by the Office for Budget Responsibility. It also takes into account behavioural changes, Hoban said.

The question, asked by Conservative MP Penny Mordaunt, was in response to the Dilnot Report, which looked at how to fund care for elderly people. The Age UK charity suggested asking pensioners to pay NI.

A spokesman for Mordaunt said: “Charging OAPs NIC has been mooted as a means of funding care, and in the context of the Dilnot Report it is interesting to know the sums that could be raised through such a measure.”

Related Articles

Government should rethink “digitally distracted” HMRC, ATT urges

Administration Government should rethink “digitally distracted” HMRC, ATT urges

2y Fraser Simpson, Reporter
UK has ‘vital role to play’ in beating tax evasion, declares Panama Papers whistleblower

Corporate Tax UK has ‘vital role to play’ in beating tax evasion, declares Panama Papers whistleblower

2y Fraser Simpson, Reporter
Colin: Just another brick in the pension plan

People In Practice Colin: Just another brick in the pension plan

2y Richard Crump, Writer
Parliament to debate digital tax accounts this month

Administration Parliament to debate digital tax accounts this month

2y Calum Fuller, Reporter
Knight's suitability as OTS chief questioned by MPs

Corporate Tax Knight's suitability as OTS chief questioned by MPs

2y Fraser Simpson, Reporter
Macpherson to leave Treasury after 10 years in Permanent Secretary role

Corporate Tax Macpherson to leave Treasury after 10 years in Permanent Secretary role

2y Chris Warmoll, Writer
Holyrood to rule out income tax increases despite new powers

Corporate Tax Holyrood to rule out income tax increases despite new powers

2y Calum Fuller, Reporter
HMRC explains Gift Aid changes in guidance document

Corporate Tax HMRC explains Gift Aid changes in guidance document

2y Calum Fuller, Reporter