National Insurance Fund (Hansard, 4 December 1992)

§ Mr. Dewar
To ask the Secretary of State for Social Security when the maximum figure for the transfer of funds from Parliament to the national insurance fund of 17 per cent. of benefit outgoings from 1994–95 onwards was fixed; and what working assumptions were used.

§ Mr. Burt
Proposals for the maximum amounts of Treasury grant were finalised at the time of the Chancellor's autumn statement. The working assumptions used to inform consideration of the maximum amounts were those published in table 2D.1 of Cm. 2096.

§ Mr. Dewar
To ask the Secretary of State for Social Security what were the reasons for the decrease in the Treasury supplement to the national insurance fund(a) between 1981 and 1985 and (b) currently.

§ Mr. Burt
(a) The Social Security (Contributions) Act 1981 permited the amount of the Treasury supplement to be varied by up to 2 per cent. The changes in amounts between the tax years 1981–82 and 1985–86 reflected the views taken by the Government at successive re-ratings on the appropriate balance of national insurance fund expenditure to be met by contributors and taxpayers, in the light of the circumstances at the time.
(b) The Treasury supplement was abolished in 1989.

§ Mr. Dewar
To ask the Secretary of State for Social Security whether the assumptions used in calculating the maximum level of transfers from Parliament to the national insurance fund of 20 per cent. of benefit outgoings in 1993–94 and 17 per cent. in future years were identical to those used in table 20.1 of Cm. 2096.

§ Mr. Burt
Yes.

§ Mr. Dewar
To ask the Secretary of State for Social Security what effect each increase in unemployment of 100,000 would have on the national insurance fund in 1993–94, 1994–95 and 1995–96 in cash and constant prices.

§ Mr. Burt
The effect in 1993–94 is set out in paragraph 22 of the Government Actuary's report (Cm. 2097). In later years the figures would be broadly similar.

§ Mr. Dewar
To ask the Secretary of State for Social Security what working assumption of unemployment levels was used for 1994–95 and future years to calculate the maximum transfer of money provided by Parliament to the national insurance fund of 17 per cent. of benefit outgoings.

§ Mr. Burt
The working assumptions published in table 2D.1 of Cm. 2096 were taken into consideration in setting the maximum level of Treasury grant for the years 1994–95 onwards.

§ Mr. Dewar
To ask the Secretary of State for Social Security, pursuant to his answer to the hon. Member for Staffordshire, Moorlands (Mr. Knox),Official Report, column 690, what percentage of the national insurance fund has been paid out in national insurance rebates, tax reliefs and other incentives paid in respect of personal 422W pensions contracted out of the state earnings-related pension scheme for each of the past four years; and what is the equivalent expected percentage in each of the next four years.

§ Mr. Burt
Although for administrative reasons tax relief is paid with the rebate, because it is claimed back from the Inland Revenue it is not a charge on the national insurance fund.
Not all the information requested is available. Such information as is available is in the tables.

Table 1

Tax Year NI Fund Income (£m) Percentage

1988–89 29,825 1.1

1989–90 30,446 8.5

1990–91 34,490 6.3

1991–92 34,679 7.4

Table 2

Tax Year Estimated NI Fund Income (£m) Percentage

1992–93 35,993 8.1

1993–94 45,684 6.3

Table 1
Tax Year	NI Fund Income (£m)	Percentage
1988–89	29,825	1.1
1989–90	30,446	8.5
1990–91	34,490	6.3
1991–92	34,679	7.4

Table 2
Tax Year	Estimated NI Fund Income (£m)	Percentage
1992–93	35,993	8.1
1993–94	45,684	6.3