Closed petition Review governance of National Insurance Fund

Petition progress

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• 26 May 2019

  Petition closed

• 19 February 2019

  Government responded to this petition

  The National Insurance Fund has a robust governance structure to ensure it is managed in a responsible and sustainable way, therefore the government does not intend to make significant changes.

  Read the response in full

  The National Insurance Fund (NIF) has a transparent and robust governance structure in place to ensure responsible and sustainable management of National Insurance contributions (NICs) receipts and benefit payments. The full details of this governance structure and information on the receipts, expenditure, and balance of the NIF is in the annual NIF Accounts. These are examined and certified by the head of the National Audit Office and copies are laid before Parliament. The latest report is available here:
  https://www.gov.uk/government/publications/national-insurance-fund-accounts

  HMRC has overall responsibility for the control and management of the NIF. NICs received by HMRC are paid into the NIF, with the exception of around 20% of receipts which are used to fund the NHS. The level of this funding in 2017-18 is available in the Department of Health and Social Care's annual report and accounts here:
  https://www.gov.uk/government/publications/dhsc-annual-report-and-accounts-2017-to-2018

  The Department for Work and Pensions (DWP) has responsibility for the award and payment of most benefits payable from the NIF, including those relating to pensions, sickness and contribution-based Jobseeker’s Allowance.

  The government ensures that when decisions are taken regarding NICs and benefit payments, full consideration is given to the impact on the NIF. In setting NICs rates, Treasury Ministers are required to consider changes in the general level of earnings, the balance on the NIF and future expected payments. The Government Actuary’s Department (GAD) is also required to report on the likely effect of the government’s annual benefits and contributions changes on the NIF. These reports are laid before Parliament and debated alongside the relevant regulations. The latest report is available here:
  https://www.gov.uk/government/publications/report-to-parliament-on-the-2019-re-rating-and-up-rating-orders

  The balance of the NIF is invested in the National Insurance Fund Investment Account (NIFIA). The Commissioners for the Reduction of the National Debt (CRND), a body of the UK Debt Management Office, has a statutory responsibility for the administration and investment of the NIFIA. They are authorised to invest monies in accordance with directions given by HM Treasury and in line with the Memorandum of Understanding between HMRC and CRND.

  The GAD is also required to review the operation of the NIF at least every five years. The latest quinquennial report was laid before Parliament on 19 October 2017, and is available here:
  https://www.gov.uk/government/publications/government-actuarys-quinquennial-review-of-the-national-insurance-fund-as-at-april-2015

  Given the strength of existing governance structures and processes for independent review, the government has no plans to make significant changes to how the NIF is governed.

  HM Treasury

• 29 January 2019

  Government will respond to this petition

  This petition got more than 10,000 signatures meaning that government will respond to it.

• 26 November 2018

  Petition published

  This petition can now be signed.

  If this petition gets 10,000 signatures, government will respond to it.

  If this petition gets 100,000 signatures, it will be considered for debate in Parliament.

  This petition will stay open until 26 May 2019.