To:	The Right Hon. Alistair Darling MP, Secretary of State for Social Security
	Ms Dawn Primarolo MP, Paymaster General

REPORT BY THE GOVERNMENT ACTUARY ON THE DRAFTS OF THE SOCIAL SECURITY BENEFITS UP-RATING ORDER 2000 AND THE SOCIAL SECURITY (CONTRIBUTIONS) (RE-RATING AND NATIONAL INSURANCE FUNDS PAYMENTS) ORDER 2000

Sir and Madam,

I attach a report on the likely effects on the National Insurance Fund of the Social Security Benefits Up-rating Order 2000 and the Social Security (Contributions) (Re-rating and National Insurance Funds Payments) Order 2000. This report is made in accordance with sections 142(1), 147(2) and 150(8) of the Social Security Administration Act 1992, as amended by the Social Security Contributions (Transfer of Functions Act, etc.) 1999.

The report estimates the receipts of and payments from the National Insurance Fund for the years 1999-2000 and 2000-01 and the balance in the fund at the start and end of each year. The economic assumptions used correspond with those prepared by Her Majesty's Treasury at the time of the Pre-Budget Report in November 1999.

On the basis of the estimates in the report, the level of the National Insurance Fund at 31st March 2001 will be greater than one-sixth of benefit payments in 2000-01. Thus it exceeds the minimum level that I recommend to ensure that a reasonable working balance is maintained. It will not therefore be necessary for any Treasury grant to be made to the National Insurance Fund in 2000-01.