§ Mrs. BeckettTo ask the Secretary of State for Social Services what is the most recent advice he has received from the Government Actuary as to the minimum target balance of the national insurance fund as a percentage of annual benefit expenditure; and what was the actual balance in each year since 1979–80.
§ Mr. PortilloFor the first part of her question I refer the hon. Member to my reply to the hon. Member for Bradford, West (Mr. Madden) on 7 March. The remaining information is as follows:
Balance in the national insurance fund at the end of the financial year £ millions 1979–80 4,626 1980–81 5,037 1981–82 4,046 1982–83 4,023 1983–84 4,604 1984–85 4,978 1985–86 5,293 1986–87 5,707 Source: Annual accounts of the National insurance fund as presented to Parliament pursuant to section 133(2) of the Social Security Act 1975. The fund accounts for 1986–87 were presented to Parliament on 22 January 1988.
§ Mr. Ken HargreavesTo ask the Secretary of State for Social Services whether he will publish in theOfficial Report a table showing for each year since 1975–76 the balance in the national insurance fund; and also, for each year, if he will express the balance as a percentage of annual benefit expenditure financed by the fund.
§ Mr. PortilloThe information is as follows:
192W
Balance in the national insurance fund at the end of the financial year expressed as a percentage of annual benefit expenditure Year Balance (end of year) £ milliom Benefit expenditure £ million Balance as a percentage of benefit expenditure 1975–76 2,219 6,812 32.6 1976–77 3,147 8,066 39.0 1977–78 3,825 9,385 40.8 1978–79 4,090 10,682 38.3 1979–80 4,626 12,243 37.8 1980–81 5,037 14,893 33.8 1981–82 4,046 17,243 23.5 1982–83 4,023 18,611 21.6 1983–84 4,604 19,716 23.4
Year Balance (end of year) £ milliom Benefit expenditure £ million Balance as a percentage of benefit expenditure 1984–85 4,978 20,831 23.9 1985–86 5,293 22,309 23.7 1986–87 5,707 24,005 23.8 Source:
Annual accounts of the national insurance fund as presented to Parliament pursuant to section 133(2) of the Social Security Act 1975. The fund's accounts for 1986–87 were presented to Parliament on 22 January 1988.
§ Mrs. BeckettTo ask the Secretary of State for Social Services by how much the contribution income of the national insurance fund for 1988–89 would be reduced if the Treasury supplement were not reduced from 7 to 5 per cent. of gross contributions, the balance in the fund were maintained at the same proportion of benefit expenditure as at the end of 1987–88 instead of rising from 27 to 33 per cent., the proportion of contributions allocated to the National Health Service remained unchanged, and contribution rates were adjusted accordingly.
§ Mr. MaddenTo ask the Secretary of State for Social Services by how much the contribution income of the national insurance fund for 1988–89 would be reduced if the Treasury supplement were not reduced from 7 to 5 per cent. of gross contributions, the balance in the fund were maintained at the same proportion of benefit expenditure as at the end of 1987–88 instead of rising from 27 to 33 per cent., the proportion of contributions allocated to the National Health Service remained unchanged, and contribution rates were adjusted accordingly.
§ Mr. Portillo[holding answer 7 March 1988]: It is estimated that to arrive at a national insurance fund balance at the end of 1988–89 of 27 per cent. of benefit expenditure, whilst maintaining the Treasury supplement at 7 per cent. of gross contributions and the present NHS allocation, the fund's income from contributions would need to be £2,000 million lower than currently estimated for the year.