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National Insurance

Volume 195: debated on Thursday 25 July 1991

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To ask the Secretary of State for Social Security what amount and proportion of national insurance contributions from (a) employees, (b) employers, (c) voluntary, (d) self-employed and (e) in total, were spent on (i) national insurance contributory benefits, (ii) non-contributory benefits and (iii) the national health service in each year since 1979–80.

The information is not available in the form requested. The available information is given in the tables. It is not possible to apportion expenditure between the classes of national insurance contributions in the way suggested by the question. However, the income to the national insurance fund is shown in table 1 and the expenditure from the fund is shown in table 2.

Class 1 Employees

Class 1 Employers

Class 2

Class 3

Class 4

Total

1988–8913,85017,1184373247431,911
1989–9014,45019,0504783657134,585

1. Figures for 1987–88 to 1989–90 are provisional.

2. Figures for 1990–91 are not yet available.

3. Class 3 contributions are voluntary; Class 2 and Class 4 are self-employed.

4. There was also a Treasury Supplement to the National Insurance Fund, which was progressively reduced from a rate of 18 per cent in 1979–80 until its abolition in April 1989.

Table 2

Expenditure from the National Insurance Fund

£ million

Benefits

NHS

1979–8012,206882
1980–8114,8431,025
1981–8217,2131,339
1982–8318,5931,629
1983–8419,7091,705
1984–8521,2851,814
1985–8622,9012,018
1986–8724,7482,213
1987–8825,8262,702
1988–8926,5453,477
1989–9028,2354,071
1990–9130,4964,300

1. Contributory benefits arc defined as those paid from the National Insurance Fund. However, Industrial Injuries Benefits, Guardians Allowance and Childs Special Allowance, although paid from the Fund, do not have a contribution condition.

2. Benefits include Statutory Sick Pay from 1983–84 and Statutory Maternity Pay from 1987–88. From 1990–91 expenditure on Statutory Sick Pay and Statutory Maternity Pay is reimbursed from general taxation.

3. Administration costs arc not included, as the breakdown between contributory and non-contributory benefits is not available for all years.

4. Benefits figure for 1990–91 is estimated outturn.

5. NHS figure for 1990–91 is provisional.

6. Any excess of expenditure over income in any year is met by the accumulated balance of past surpluses.