National Insurance Fund

HC Deb 18 May 1978 vol 950 cc273-5W

Mr. Patrick Jenkin

asked the Secretary of State for Social Services if he will give

On the basis of the proposals in the Budget, the figures are as follows:

the main factors which have led to an estimated surplus of £648 million in the National Insurance Fund for 1977–78.

Mr. Ennals

The contribution review for 1977–78 resulted in increases in the floor and ceiling for class 1 and 4 contribution liability, but no change in the rates of contribution except for class 2 and 3. In commending the contributions order to the House on 11th January 1977—[Vol. 923, c. 1346–55]—I explained the national insurance arguments against reducing contributions in that year only to raise them for the start of new pensions in April 1978, the need to build up the National Insurance Fund in relation to its benefit commitments, and the need to take into account the possibility of sharper than previous fluctuations in the economic factors affecting benefit expenditure. I also explained that although national insurance is a self-contained system its impact could not be considered in isolation from the needs of the economy as a whole.