National Insurance Fund (Hansard, 26 January 1977)

§ Mr. Litterick
asked the Secretary of State for Social Services if he will publish in the Official Report figures showing the earnings ratio on the assets held by the National Insurance Fund during the last complete year for which this information is available, compared with the average earnings ratio on the Financial Times all share list.

§ Mr. Orme
The annual income yield on assets held at 1st April 1975 was 9.46 per cent. and the corresponding figure at 31st March 1976 was 10.3 per cent. TheFinancial Times and actuaries all share dividend yield for April 1975 and March 1976 was 6.16 per cent and 5.29 per cent. respectively.

§ Mr. Litterick
asked the Secretary of State for Social Services (1) if he will establish a formal inquiry into the loss of £600 million in the value of the assets of the National Insurance Fund in 1975;
(2) if he is satisfied that, in view of the loss of £600 million in the assets value of the National Insurance Fund in 1975, and the relatively poor asset value growth of the Fund, the terms of reference defined by Section 133(3) of the Social Security Act 1975, by which the National Insurance Fund assets are managed, are sufficient to allow the Fund managers to obtain the optimum return to the moneys contributed by Great Britain's workers.

§ Mr. Orme
No inquiry is considered necessary. The revaluation of certain
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those receiving any other benefit for December 1974, December 1975, and for the latest available date.

§ Mr. Deakins
The number of one-parent families receiving supplementary benefit in combination with other benefits in 1974 and 1975 (the latest available information) is as follows:
assets in 1975 was a necessary consequence of the requirement under Section 44(2) of the Social Security Act 1973 to wind up the National Insurance (Reserve) Fund and the Industrial Injuries Fund and to transfer the assets in these Funds to the National Insurance Fund. A full explanation will be given in the National Insurance Fund Account due to be published shortly. I have no proposals to amend Section 133(3) of the Social Security Act 1975.