§ Mr. Dewar
To ask the Secretary of State for Social Security what is his current estimate of the level of the Treasury supplement necessary in 1994–95, expressed as a percentage of benefit outgoings, based on the assumption of indexation for all contribution limits and thresholds and the effects of changes in national insurance contribution rates announced in the 1993 Budget; and what would be the combined rate of employer/employee contributions necessary in order to achieve a balanced national insurance fund without the Exchequer contribution.
§ Mr. Hague
It is estimated that a Treasury grant equivalent to 12.5 per cent. of expected benefit expenditure would be needed to balance the national insurance fund in 1994–95. If the grant were not available, a combined employer/employee contribution rate of between (the contribution percentages vary according to whether there is an increase in the main primary or secondary rate, or a combination of both) 22.7 and 23.4 per cent. would be needed to raise the same level of income. Estimates are based on the March 1993 "Financial Statement and Budget Report" assumptions.