KEETCH OUTRAGED BY NATIONAL INSURANCE FIASCO

5.48.19pm GMT Tue 28th Feb 2006

Paul Keetch, MP for Hereford has tackled the Government over a fiasco surrounding National Insurance contributions. It has come to light that National Insurance contributions made since 2003 have not all been recorded on the computer system which has resulted in benefit payments due to many being denied.

A potential ramification of this delay in the recording of National Insurance contributions is that when workers try to claim benefits, such as Incapacity Benefit, based on NI contributions, they will be turned down as the computer may show insufficient contributions have been received in the relevant tax year.

Commenting Mr Keetch said:

"I have had constituents contact me on this issue because they have been refused Incapacity Benefit on the grounds of insufficient NI contributions, even though they have been in full time work for many years.

"It is clear that the delay in logging workers' NI contributions is affecting access to benefits in my constituency. I have questioned the government on this issue as it is likely that many people have been a victim of this administrative delay across the UK."

However, rather shockingly Mr Keetch received a response to his parliamentary questions from the Paymaster General, Dawn Primarolo MP, claiming "we are not aware of any taxpayers who are waiting to have their National Insurance contributions to be recorded on the computer system since 2003."

"I find this response astounding," Mr Keetch said. "I know for a fact that I have constituents who have suffered the consequences of this delay and for the Paymaster General to say that she is unaware of the problem is just not acceptable. Indeed the Inland Revenue have advised me this is very much the case and have acknowledged that there is a problem - clearly the Government does not know what's going on!

"I intend to keep pressing this issue with the Government in order to find satisfactory responses to my queries raised on behalf of my constituents. The Labour Government must tackle this fiasco immediately".