§ Mr. DewarTo ask the Secretary of State for Social Security what is his estimate of the combined rate of employer/employee national insurance contributions necessary to achieve balance in the national insurance fund in 1994–95.
§ Mr. HagueIt is estimated1 that a treasury grant equivalent to 16 per cent. of expected benefit expenditure will be needed to balance the national insurance fund in 1994–952. If the grant was not available a combined employer/employee contribution rate of between 23.2 and 23.9 per cent.3 would be needed to raise the same level of income.
1 Estimates are based on the November 1993 FSBR assumptions.2 The Government Actuary recommends planning for an end year balance equivalent to 2 months' benefit expenditure.3 The contribution percentages vary according to whether there was an increase in the main primary or main secondary percentage rate, or a combination of both.