Industrial Injuries Fund

Oral Answers to Questions — Social Security – in the House of Commons at 12:00 am on 8th August 1966.

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Photo of Mr Peter Archer Mr Peter Archer , Rowley Regis and Tipton 12:00 am, 8th August 1966

asked the Minister of Social Security what long-term proposals she has for using the repeated annual surplus of the Industrial Injuries Fund.

Photo of Mr Harold Davies Mr Harold Davies , Leek

The surpluses will continue to be used for the purpose for which they are being accumulated, namely to earn interest to help meet the eventual commitments of the scheme.

Photo of Mr Peter Archer Mr Peter Archer , Rowley Regis and Tipton

While thanking my hon. Friend for that Answer, may I ask him to tell the House whether there is any reason to believe that the rate of industrial accidents will rise to such an extent that this will be required in due course?

Photo of Mr Harold Davies Mr Harold Davies , Leek

The Industrial Injuries Fund has to be prepared for any contingency and the fact, of which many hon. Members will be aware, is that expenditure from the Fund is already higher than the income by way of contributions and Exchequer supplement. In the first full year of 1949–50, the income of the Fund from contributions and Exchequer supplements was £36 million, against an expenditure of only £14 million, but in 1964–65, the latest available figures show that the income was £82 million, while the expenditure was £86 million. Consequently, a wise Government, whatever politics they may have, must be aware of these contingencies and prepared for further industrial problems.