HC Deb 08 June 1978 vol 951 cc213-4W
Mr. Litterick

asked the Secretary of State for Social Services (1) what is the total value of the surpluses in the National Insurance Fund generated during the four-year period ended in April 1978;

(2) what increases in the level of average earnings during 1978–79 is assumed in the estimates of the income of the National Insurance Fund contained in the "Report by the Government Actuary on the draft of the Social Security Benefits Up-rating Order 1978", Command Paper No. 7232;

(3) what is the average level of unemployment assumed in the estimates of the income and expenditure of the National Insurance Fund for 1978–79, contained in the "Report of the Government Actuary on the draft of the Social Security Benefits Up-rating Order 1978", Command Paper No. 7232:

(4) what is his Department's estimate of the effect on the revenue of the National Insurance Fund of an increase of 1 per cent. in aggregate earnings during 1978–79.

Mr. Orme

The total value of the surpluses of the National Insurance Fund generated during the four-year period ended 31st March 1978 is estimated to be £2,582 million. The assumptions used in Command Paper No. 7232 are that: (i) average earnings, after seasonal adjustment, will progress regularly from February 1978 to a level 10 per cent. higher by March 1979—an annual increase of 9.2 per cent.; (ii) the number of unemployed, excluding school leavers, will average 1,380,000 in 1978–79 and that, in addition, the number of school leavers and adult students or persons whose employment has temporarily stopped will average 170,000.

For each 1 per cent. increase in average earnings over that assumed for 197879 in Command Paper No. 7232 the income of the National Insurance Fund would increase by about £36 million.