National Insurance (Hansard, 6 February 1991)

§ Mr. Battle
To ask the Secretary of State for Social Security if he will publish a table showing the main changes to national insurance benefits and the savings or expenditure which accrued from each change since 1979 in(a) cash prices and (b) 1990 prices.

§ Mr. Jack
Between 1978–79 and 1990–91, expenditure on national insurance benefits has grown by almost £20

Changes to national insurance benefits: estimated expenditure effects

Great Britain: £ million

Financial year introduced ¹Cash effect Cash effect 1990–91 prices

Uprating of long-term benefits by prices 1981–82 -280 -470

5 per cent. abatement in uprating of invalidity benefit, unemployment benefit, sickness benefit and maternity allowance 1981–82 -160 -270

Abolition of earnings related supplements to short-term benefits 1982–83 -390 -610

Introduction of statutory sick pay² 1983–84 -10 -10

Restoration of 5 per cent. abatement of unemployment benefit 1984–85 80 110

Offsetting of invalidity benefit age addition by additional pension 1986–87 -140 -180

Restoration of 5 per cent. abatement of invalidity benefit 1986–87 120 160

Extension of statutory sick pay² 1986–87 -80 -100

Introduction of statutory maternity pay² 1987–88 40 50

Unemployment benefit abatement for occupational/personal pension reduced from age 60 to 55 1988–89 -63 -70

Weekly earnings rule introduced for unemployment benefit 1989–90 -49 -50

Unemployment benefit "full extent normal" rule—de minimis provision 1989–90

"Actively seeking work" test for unemployment benefit 1989–90

Aboltion of pensioners earnings rule 1989–90 375 410

Widows: revised entitlement conditions for women widowed before April 1988 1989–90 13 14

Statutory sick pay: amendment of rates and higher/lower rate threshold 1990–91 -72 -72

¹ Figures shown represent the initial estimates of the effect on national insurance benefit expenditure only in the first full year following implementation. No account is taken of the impact of the changes on administration costs, income tax and national insurance contribution revenues or expenditure on income-related benefits, other than as shown in note 2.

² Amounts shown represent the net effect on national insurance benefit expenditure after employers' recoveries from contributions to the national insurance fund in respect of payments of statutory sick pay and statutory maternity pay to their employees.

§ Mr. Allen
To ask the Secretary of State for Social Security when he expects to receive recommendations from the Government Actuary on the level of contributions to the national insurance fund necessary to prevent it running into deficit after 1993.

§ Mr. Jack
The exact level of contributions needed in the 1993–94 year will be considered as a result of advice from the Government Actuary in the autumn of 1992. The fund is projected to keep its level above the minimum recommended by the Government Actuary.

Changes to national insurance benefits: estimated expenditure effects
Great Britain: £ million
	Financial year introduced	¹Cash effect	Cash effect 1990–91 prices
Uprating of long-term benefits by prices	1981–82	-280	-470
5 per cent. abatement in uprating of invalidity benefit, unemployment benefit, sickness benefit and maternity allowance	1981–82	-160	-270
Abolition of earnings related supplements to short-term benefits	1982–83	-390	-610
Introduction of statutory sick pay²	1983–84	-10	-10
Restoration of 5 per cent. abatement of unemployment benefit	1984–85	80	110
Offsetting of invalidity benefit age addition by additional pension	1986–87	-140	-180
Restoration of 5 per cent. abatement of invalidity benefit	1986–87	120	160
Extension of statutory sick pay²	1986–87	-80	-100
Introduction of statutory maternity pay²	1987–88	40	50
Unemployment benefit abatement for occupational/personal pension reduced from age 60 to 55	1988–89	-63	-70
Weekly earnings rule introduced for unemployment benefit	1989–90	-49	-50
Unemployment benefit "full extent normal" rule—de minimis provision	1989–90
"Actively seeking work" test for unemployment benefit	1989–90
Aboltion of pensioners earnings rule	1989–90	375	410
Widows: revised entitlement conditions for women widowed before April 1988	1989–90	13	14
Statutory sick pay: amendment of rates and higher/lower rate threshold	1990–91	-72	-72
¹ Figures shown represent the initial estimates of the effect on national insurance benefit expenditure only in the first full year following implementation. No account is taken of the impact of the changes on administration costs, income tax and national insurance contribution revenues or expenditure on income-related benefits, other than as shown in note 2.
² Amounts shown represent the net effect on national insurance benefit expenditure after employers' recoveries from contributions to the national insurance fund in respect of payments of statutory sick pay and statutory maternity pay to their employees.