§ Mrs. Beckett
To ask the Secretary of State for Social Security what is the most recent estimate of the cost to the national insurance fund for 1988–89 of the 2 per cent. subsidy payable under sections 1 and 7 of the Social Security Act 1986; and how much of this relates to contributions in respect of the year 1987–88.
§ Mr. Peter Lloyd
The general rule is that incentives payable under sections 1 and 7 of the Social Security Act 1986 in respect of 1987–88 and 1988–89, will be paid in 1989–90. The Government Actuary has followed this assumption when deriving the estimate that £310 million of incentives will be paid in 1989–90, of which £80 million relates to contributions in respect of 1987–88, and £230 million relates to 1988–89.
All figures are consistent with the Government Actuary's report on the uprating and rerating orders, (Cm. 537).