§ 92. Mr. Peter Freemanasked the Minister of National Insurance what was the balance of the National Insurance Fund at the latest known date; what estimate of unemployment was made by the Government actuary to balance benefits and contributions; what is the present figure to account for the surplus; and whether it is her intention to increase benefits or reduce the contributions.
Mr. B. TaylorThe balance in the National Insurance Fund on 31st March, 1949, was about £195 million, which includes £100 million transferred from the N.I. (Reserve) Fund. This is the figure given in the last statutory account, and in accordance with long-standing practice I am not prepared to anticipate the next account, which will shortly be presented to Parliament. An average rate of un-employment of 8½ per cent. was assumed by the Government actuary, on instructions from the Government, for the purpose of estimating the cost of unemployment benefit and the contributions required for this benefit. Since the inception of the scheme the rate has been between 1½ and 2 per cent. The rates of contributions and benefits could only be re-adjusted as part of a general review of the finances of the scheme as a whole.