Treasury written question – answered at on 18 February 2008.
To ask the Chancellor of the Exchequer
(1) what the balance of the National Insurance Fund was in excess of the minimum balance required in relation to benefit spending in each of the last 10 years; and if he will make a statement;
(2) what estimate was made by the Government Actuary of the minimum balance required in the National Insurance Fund in relation to benefit spending in each of the last 10 years; and if he will make a statement.
holding answer
The information requested is shown in the following table in respect of the GB National Insurance Fund:
£ billion | ||||||||||
1996-97 | 1997-98 | 1998-99 | 1999-2000 | 2000-01 | 2001-02 | 2002-03 | 2003-04 | 2004-05 | 2005-06 | |
Balance on fund | 7.7 | 9.6 | 12.3 | 14.4 | 19.3 | 23.6 | 26.5 | 27.1 | 29.1 | 34.3 |
Minimum balance required | 6.9 | 7.1 | 7.4 | 7.7 | 7.9 | 8.4 | 8.8 | 9.2 | 9.5 | 10.0 |
Excess | 0.8 | 2.5 | 4.9 | 6.7 | 11.4 | 15.2 | 17.7 | 17.9 | 19.6 | 24.3 |
When there is a surplus it is invested. NICs and associated social security benefits operate within the Government's fiscal rules designed to ensure sound public finances. Any surplus of NICs over social security benefits (the NI Fund surplus) in any one year is not therefore an extra resource available to spend.
The minimum operating balance recommended by the Government Actuary is one sixth of annual benefit payments. Figures for the minimum balance shown in the table are based on actual benefit payments made in each year. Estimated levels of benefit payments are published annually by the Government Actuary's Department in reports on up-rating orders, copies of which are in the Library.
Yes1 person thinks so
No0 people think not
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