HC Deb 09 January 1996 vol 269 cc167-8W
Mr. Chris Smith

To ask the Secretary of State for Social Security what estimate he has made of the level of combined employer and employee contributions necessary to achieve balance in the national insurance fund in (i) 1995–96, (ii) 1996–97, (iii) 2025 and (iv) 2035, based on the assumptions contained in "Equality in State Pension Age", Cm 2420. [6531]

Mr. Andrew Mitchell

The available information is in the table.

Estimated level of combined employer and employee contributions necessary to achieve balance in the National Insurance Fund
Year Contribution level (main rates)3
1995–961 19.55 per cent.
1996–971 19.25 per cent.
20252 16.9 per cent.
20352 16.7 per cent.

Notes:

1. Based on the estimates underlying the "Financial Statement and Budget Report 1996–97".

2. Based on the National Insurance Fund long-term financial estimates (Report by the Government Actuary on the third Quinquennial Review under section 137 of the Social Security Act 1975 (HC160-31 January 1995).

3. Estimated level (excluding employee and employer National Health Service allocations of 1.05 per cent. and 0.9 per cent. respectively) for there to be no Treasury Grant and for the minimum level of the fund to be maintained at the recommended one sixth of annual benefit expenditure.

Source: Government Actuary's Department.