§ Mr. Dewar
To ask the Secretary of State for Social Security further to the information provided in table 8, page 16 of "The Growth of Social Security", if he will show for each year 1993–94 and 1999–2000 the level of combined employer/employee national insurance contributions that would be required to balance the national insurance fund, assuming 1.5 per cent. real earnings growth per annum.
§ Mr. Hague
In 1993–94, to achieve a balance between national insurance contribution income and the benefit and administration expenditure associated with the national insurance fund it is estimated that a combined employer/employee national insurance contribution rate of 22.6 per cent. would be required. Currently a lower rate of 19.4 per cent. applies, the availability of a Treasury grant enables the NI fund to be kept in balance.
The case two projection for benefit expenditure shown in "The Growth of Social Security" provides an estimate of £88.4 billion for total benefit expenditure in 1999–2000. The level of combined contributions required to achieve a balance of national insurance contribution income with benefit and administration expenditure is estimated to be 20.5 per cent., assuming 1.5 per cent. real earnings growth per annum.