Skip to main content

National Insurance Fund

Volume 892: debated on Wednesday 14 May 1975

The text on this page has been created from Hansard archive content, it may contain typographical errors.

asked the Secretary of State for Social Services (1) what rate of national insurance class 1 primary contribution at the standard rate would be needed in order to raise the annual income of the fund by (a) £60 million, (b) £110 million, and (c) £145 million;(2) what rates of national insurance contribution would be necessary in order to increase the annual income of the fund by (

a) £60 million, ( b) £110, and ( c) £145 million, assuming that the ratios between the four classes of contribution set out in the Social Security Amendment Act 1974 were adhered to.

It is assumed that there would be a Treasury supplement of 18 per cent. on the extra contribution yield. If the additional sum were to be raised in 1975–76 only from higher primary class 1 contributions at the standard rate. The increase would be (a) 0·12 per cent., (b) 0·23 per cent. and (c) 0·3 per cent. If the cost were to be shared by all classes of contributor the national insurance element of 12·8 per cent. in the class 1 contribution would be increased to (a) 12·91 per cent., (b) 13 per cent. and (c) 13·07 per cent. with proportionate increases in other classes of contribution.

asked the Secretary of State for Social Services what would be the estimated extra annual cost to the National Insurance Fund if the rate of unemployment of 650,000 assumed in the Social Security Benefits Act 1975 were to rise to 1 million.

The extra cost of unemployment benefit would be about £215 million a year. There would also be a loss of contribution income of some £140 million.