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Unemployment Hits National Insurance Reserves

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http://www.bbc.co.uk/news/uk-politics-12174193

Rising unemployment has cut the amount of money the government holds in reserve to pay out-of-work benefits, new figures reveal.

The National Insurance Fund lost £4.5bn in the year to March 2010 - the first time since 1993 it has gone down.

But it still stood at £48.5bn - well within what is considered prudent by government accountants.

All UK workers pay into the fund - sickness benefits and jobseekers allowance are paid from it if needed.

According to the fund's accounts for 2009/10, £4.9bn of the decrease was down to rising unemployment claims and a £663m reduction in National Insurance contributions.

Interest earned on the fund "also decreased significantly due to the historically low interest rates", the accounts say.

In 1992, the government actuary set a rate of 16.7% of annual expenditure on benefits as a prudent level for the fund to hold.

It currently stands at 64% of the annual welfare bill and is expected to remain at that level next year.

This suggests the government will have enough in reserve to carry on paying benefits if unemployment continues to rise as some economists have predicted.

According to figures released by the Office for Budget Responsibility at the end of last year, rising unemployment will cost the government £1.5bn more than expected in welfare benefits, over the next four years.

The OBR also calculates the government will have to pay out £700m more in unemployment benefit than previously forecast.

Official data showed 2.5 million people were unemployed last month - compared with 1.63 million in the same month in 2009.

But a survey released this week suggests the jobs market is "on the road to recovery", with a strong rise in demand for staff.

The survey of recruitment consultants and employers in December found permanent staff vacancies rising at their fastest level in four months.

But one of the reports sponsors, KPMG, warns the future of the recovery is uncertain, as the government's austerity measures take effect.

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Reserves? No such thing, many people believe there is a huge safe/warehouse where their NIC goes. There isn't there is however a massive massive office which stores the NIC records FOREVER. One of my clients a while ago was given a reduced pension when IR records showed that he had underpaid about 47 years ago. They had records of the letter sent and a copy of the letter.

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NIC Fund.

What does it in invest in? Is it invested on UK property/land/blue chips so the rental/dividend income is paid out to the benaficiaries?

Are there a team of elite fund managers and traders, growing this pot each day?

Or is it just a black hole.

We never hear any of this, despite everyone paying into this fund.

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NIC Fund.

What does it in invest in? Is it invested on UK property/land/blue chips so the rental/dividend income is paid out to the benaficiaries?

Are there a team of elite fund managers and traders, growing this pot each day?

Or is it just a black hole.

We never hear any of this, despite everyone paying into this fund.

Probably in that Icelandic bank Kaptthing :D

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Who says they aren't?

I had multiple NIC demands while I was a student.

They government keep sending me top up requests because I missed a few years contributions recently. They say, if I don't pay I might not get my full pension pay out. I'm more concerned that if I do pay I still won't get my full pension payout. :ph34r:

I'm going to keep the money and invest it for myself rather than hand it to the moronic w@nkers that run this country, just for them to funnel it straight into debt interest payments.

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They government keep sending me top up requests because I missed a few years contributions recently. They say, if I don't pay I might not get my full pension pay out. I'm more concerned that if I do pay I still won't get my full pension payout. :ph34r:

I'm going to keep the money and invest it for myself rather than hand it to the moronic w@nkers that run this country, just for them to funnel it straight into debt interest payments.

You only need 30 years for the state pension. A common trick is to register as self employed file nil accounts on tax returns regularly but keep paying your class 2. £2.65 a week so around 4134 (add in 10p increase each year) and for £6000 you can cream off the future tax payers £4836 a year for decades! Though I do agree that by the time I retire pensions will not exist. You'll say pensions to young people and they think you are lying.

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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