§ Mr. Rookerasked the Secretary of State for Social Services what has been the loss to the national insurance fund since the Treasury supplement was reduced from 18 per cent.; and how much of this loss has been made up from (a) employees' and (b) employers' contributions.
§ Dr. BoysonThe national insurance fund is operated on a "pay-as-you-go" basis. The contribution rates and Treasury supplement are set so that the income to the fund in a given year is at a level broadly comparable with expected benefit expenditure in that year. The reduction in the Treasury supplement from 18 per cent. in 1980–81 by stages to 11 per cent. in 1984–85 did not therefore result in any loss to the fund.