Expenditure charged to the National Insurance Fund

35.9The National Insurance Fund is maintained under provisions of social security legislation which are currently set out in Part 12 of the Social Security Administration Act 1992. The Fund is funded primarily by the National Insurance contributions which are payable by earners, employers and others in accordance with the Social Security Contributions and Benefits Act 1992. Contributory benefits are paid out of the National Insurance Fund; other social security benefits (non-contributory and income-related benefits) are paid out of money provided by Parliament.1

The Social Security Act 1993, s 2 makes provision for supplementing the income of the National Insurance Fund by Exchequer contributions payable out of money provided by Parliament; such contributions are subject to a maximum limit of 17 per cent of benefit expenditure in any particular year. Any increase in the amounts of such expenditure charged to the fund therefore has the effect of raising the maximum (albeit potential) level of Exchequer contribution, and any provision in a bill which entails such an increase accordingly requires authorisation by Money resolution.

It would also be out of order, without a Money resolution, to propose to make use of the Fund for purposes other than those covered by existing social security legislation.


  1. 1. Social Security Administration Act 1992, s 163. See also ibid s 165.