Record-breaking
surplus in National Insurance Fund should raise state pension
Britain's biggest pensioner organisation - the
National Pensioners Convention (NPC) - has today called on the government
to use the growing surplus in the National Insurance (NI) Fund to increase
the state pension above the official poverty level.
The call follows the publication of the latest
economic forecasts from the Government Actuary's Department, which show that
the surplus in the NI Fund has been rising by over two and a quarter times
that of expenditure, and has now reached a record-breaking £38bn. In just
five years, the surplus is forecast to top £114bn - the equivalent of 136%
of expenditure and substantially more than the 16.8% surplus balance
recommended for fiscal management.
Joe Harris, NPC general secretary said: "These
latest figures show that every month, employers and employees are paying
12.8% and 11% of salaries respectively in national insurance contributions -
but that money is not being used to pay higher pensions. Instead, the
government is using that money for purposes for which it was not intended.
Today's pensioners are effectively subsidising the economy by having their
state pensions kept well below the official poverty level."
"After 100 years of the state pension,
pensioners deserve more than the pitiful £87.30 a week they currently
receive, and the massive surplus in the national insurance fund should be
used to give everyone a pension above the official poverty level of £134 a
week. These latest figures prove that the money is there to end the need for
means-testing, restore the link between pensions and earnings now and give
real financial security to all 11m pensioners."
For more information contact Neil Duncan-Jordan
on 07940-357-608
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