HC Deb 05 February 1990 vol 166 c523W
54. Mrs. Rosie Barnes

To ask the Secretary of State for Social Security what plans he has to meet the shortfall projected for the national insurance fund in 1990; and whether the Government have any plans to consider the payment of national insurance as a financial contribution separate from general taxation.

Mrs. Gillian Shephard

The latest report by the Government Actuary shows the estimated balance in the national insurance fund at the end of the current financial year to be well above his minimum recommended level. His estimates also show the balance remaining at a satisfactory level during 1990–91 even though expenditure is expected to exceed income. The balance is declining but the Social Security Bill currently before Parliament contains measures which will help to maintain a prudent working balance in the fund in future years.

Although class 1 and class 4 national insurance contributions are generally collected by Inland Revenue together with PAYE income tax, they are paid into the national insurance fund and are not accounted for separately.