HC Deb 25 November 1980 vol 994 c48W
Mr. Chris Patten

asked the Secretary of State for Social Services what change in national insurance contributions he proposes for 1981–82.

Mr. Patrick Jenkin

As my right hon. and learned Friend the Chancellor of the Exchequer announced yesterday, the Government propose:

  1. 1. To reduce the rate of Treasury supplement from 18 per cent. to 14.5 per cent. This will achieve savings in the Consolidated Fund of £529 million in the year 1981–82.
  2. 2. To increase the National Health Service allocation from contributions, to provide additional revenue of £254 million in the year 1981–82.
  3. 3. To increase contributions both to take account of these changes and to cover increased demands on the national insurance fund.

I have today presented a Bill which provides for these changes. It also provides for the annual changes needed to take account of inflation. A report by the Government Actuary (Cmnd. 8091) which accompanies the Bill sets out the effect of all these changes on the national insurance fund.