TABLE 2
Estimated income and outgo of the National Insurance Fund on the assumptions set out in paragraphs 7 to 11
Income:
Contributions*.
Treasury supplements .
Interest
Total income
:
£ million
1978-79
1979-80
8,916
9,658
1,971
2,176
440
450
11,327
12,284
Outgo:
Benefits:
With no allowance for benefit increases after November 1978 ... Illustrative provision for a further up-rating from the middle of
10,610
11,390
November 1979:
long-term benefits
313
short-term benefits
48
Transfers to Northern Ireland
Administration...
400
Other outgo
385
63
61
430
7
8
Total outgo
Surplus
:
11,080
12,250
+247
+34
* Including "payments in lieu" and state scheme premiums of £31 million in 1978-79 and
£74 million in 1979-80.
13. Some indication may be given of the effect on the Fund of changes in the earnings and unemployment assumptions on which the estimates in Table 2 are based:
(i) The effect on contribution income and Treasury supplements of lower
or higher increases in earnings from July 1978 is shown below:
Earnings increase between July 1978 and July 1979
1978-79
Earnings increase between July 1979
1979-80
and July 1980
5%
10%
15%
£ million
5%
-19
-178
-127
-76
10%
+28
+211
-+263
+315
15%
+74
+589
+641
+692
The cost of benefit up-ratings other than 84% for long-term or short- term benefits would be in proportion to the cost of an 84% up-rating as shown in Table 2.
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