§ Mr. WebbTo ask the Secretary of State for Social Security if he will estimate the balance in the National Insurance Fund at the end of each of the next 10 years assuming(a) unchanged policies, (b) an increase in the basic state pension to £75 per week, (c) the implementation of his proposed reforms to SERPS, the state second pension and the stakeholder pension and (d) both (b) and (c) above. [84635]
§ Dawn PrimaroloI have been asked to reply.
Responsibility for the National Insurance Fund was transferred to the Treasury from 1 April 1999. In each tax year the Treasury is required to carry out a review of the general level of the National Insurance Fund with a view to determining whether a Treasury Grant is required or whether an order should be made varying the contribution rates for the following tax year. The aim is to ensure that a reasonable working balance is maintained in the Fund at the end of the year. The Government Actuary recommends that the minimum level of the National Insurance Fund at the end of the year should be equivalent to one-sixth of annual benefit payments for the year. The future balances in the National Insurance Fund will be subject to these annual reviews and the information requested could be provided only at disproportionate cost.