National Insurance (Hansard, 26 February 1998)

§ Mr. Lilley
To ask the Secretary of State for Social Security if the three step increases in employers' national insurance were eliminated and this was financed by 345W raising the standard rate of NIC to 12 per cent., how many employees would be liable to (a) higher and (b) a lower marginal rate of contribution on employment than at present. [31391]

§ Mr. Denham
None.

§ Mr. Flynn
To ask the Secretary of State for Social Security what is the (i) maximum and (ii) expected amount of Treasury grant to the National Insurance Fund for 1997–98 and each subsequent year for which the grant is payable. [31597]

§ Mr. Denham
The information is set out in the table.

Treasury grant to the National Insurance Fund: maximum grant available and estimated grant required in 1997–98 and 1998–99

Amount (£ million) 1997–98 Percentage of benefit expenditure Amount (£ million) 1998–99 Percentage of benefit expenditure

Maximum Treasury grant available¹ 1,713 4.0 896 2.0

Estimated Treasury grant needed² 940 2.2 nil nil

¹ The maximum Treasury Grant available each year is prescribed as a percentage of benefit expenditure in the relevant Social Security (Contributions) (Re-rating and National Insurance Fund Payments) Order.

² Estimates of the Treasury grant need in 1997–98 and 1998–99 are in Table 2 of the Report by the Government Actuary on the drafts of the Social Security Benefits Up-rating Order 1998 and the Social Security (Contributions) (Re-rating and National Insurance Fund Payments) Order 1998 (CM 3860). The estimates of benefit expenditure set out in the report have been used to calculate the maximum amount of Treasury grant available by Order.

§ Mr. Flynn
To ask the Secretary of State for Social Security what is the estimated reduction in employers' contributions to the National Insurance Fund for 1997–98 and each subsequent year up to 2000–01 resulting from the 0.2 per cent. reduction in the contribution rate in April 1997. [31598]

§ Mr. Denham
The information is set out in the table.

£ million

Year Reduction in employers' contributions

1997–98 560

1998–99 590

1999–00 620

2000–01 650

Source:
Government Actuary's Department.

§ Mr. Flynn
To ask the Secretary of State for Social Security if she will publish her current estimate of national insurance contribution rates for 2000–01 and later years. [31599]

§ Mr. Denham
The latest published estimates of the National Insurance contribution rates required to produce sufficient income to meet the estimated expenditure from the National Insurance Fund in 2000–01 and later years are those in table 6 of the Government Actuary's report on the 3rd Quinquennial Review of the National Insurance Fund published in January 1995 (HC160), a copy of which is in the Library.

Treasury grant to the National Insurance Fund: maximum grant available and estimated grant required in 1997–98 and 1998–99
	Amount (£ million)	1997–98 Percentage of benefit expenditure	Amount (£ million)	1998–99 Percentage of benefit expenditure
Maximum Treasury grant available¹	1,713	4.0	896	2.0
Estimated Treasury grant needed²	940	2.2	nil	nil
¹ The maximum Treasury Grant available each year is prescribed as a percentage of benefit expenditure in the relevant Social Security (Contributions) (Re-rating and National Insurance Fund Payments) Order.
² Estimates of the Treasury grant need in 1997–98 and 1998–99 are in Table 2 of the Report by the Government Actuary on the drafts of the Social Security Benefits Up-rating Order 1998 and the Social Security (Contributions) (Re-rating and National Insurance Fund Payments) Order 1998 (CM 3860). The estimates of benefit expenditure set out in the report have been used to calculate the maximum amount of Treasury grant available by Order.

£ million
Year	Reduction in employers' contributions
1997–98	560
1998–99	590
1999–00	620
2000–01	650