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National Insurance Fund

Volume 124: debated on Friday 11 December 1987

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To ask the Secretary of State for Social Services (1) if he has any plans to make changes in the Treasury contribution to the national insurance fund;(2) what is the proposed Treasury contribution in cash and as a proportion of total income to the national insurance fund for 1987–88 and for each financial year until 1991.

The Treasury supplement which in the current year is 7 per cent. of gross contributions, yields about £2—1 billion and represents nearly 8 per cent. of the national insurance fund's income. It will be 5 per cent. of gross contributions in 1988–89. Estimates of what this will yield in 1988–89 will be given in the Government Actuary's report on the national insurance contributions rerating orders, which will be published when the orders are laid before Parliament in the new year. Decisions on the size of the supplement after 1988–89 have not yet been taken.

To ask the Secretary of State for Social Services what is the investment income of the national insurance fund for each year since 1979; and what is his estimate for each year to 1990.

The information is as follows:

Investment income of the National Insurance Fund
£ million
1979–80541·6
1980–81607·5
1981–82587·6
1982–83496·3
1983–84489·7
1984–85520·5
1985–86541·0
1986–87610·3
1987–88625·0
Figures for years up to 1986–87 have been derived from the annual accounts of the national insurance fund, the figure for 1987–88 is an estimate based on current trends. Estimates of investment income in 1988–89 will be given in the Government Actuary's report on the national insurance contributions rerating orders which will be published when the orders are laid before Parliament in the new year. Estimates of the fund's investment income are not available for years after 1988–89.

To ask the Secretary of State for Social Services if he will list those items of expenditure for the national insurance fund which existed in 1979 and which have ceased to exist or been reduced since that date.

The following items of expenditure from the National Insurance Fund have ceased to exist:

  • Earnings-related supplement to short-term benefits.
  • Child dependency addition to short-term benefits.
  • Injury benefit.
  • Death grant.
  • Maternity grant.