§ Mr. Nicholas BrownTo ask the Secretary of State for Social Security if he will give figures showing the rates of insured persons' national insurance contributions and employers' national insurance contributions which would be necessary in(a) 1988–89 and (b) 1989–90 in order to maintain the level of finance of the National Insurance Fund in those years if the Treasury supplement were increased to its 1978–79 level as a proportion of all National Insurance Fund revenues.
§ Mr. Peter LloydIn 1978–79 the Treasury supplement was 18 per cent. of gross contributions. The table shows the main rates of class 1 contributions required in 1988–89 and 1989–90 to maintain the estimated level of income in the national insurance fund published in the Government Actuary's report (Cm. 537) on the uprating and rerating orders, if the Treasury supplement were 18 per cent. in both years:
Insured person (primary) Per cent. Employer (secondary) Per cent. 1988–89 8.00 9.25 1989–90 7.75 9.00 Proportionate reductions in the class 1 lower band contribution rates and in contribution rates for the self-employed would also take place. The higher Treasury supplement would cost the taxpayer £5.25 billion in 1988–89 and £5.35 billion in 1989–90.