Subhead B of my Department's Estimates provides for the Exchequer subvention to the social insurance fund. The subvention is the amount by which expenditure from the fund is greater than its income. The fund expenditure and income estimates underlying the 1998 Estimate — Abridged Version — and the forecast outturn for 1997 are contained in a tabular statement which I will circulate in the Official Report.
The reduction of £5.7m in the subvention in 1998 is due to the expectation that fund income will increase by slightly more than fund liabilities, on a pre-budget basis. Income, which is made up almost entirely of PRSI contributions, is expected to increase by £94.9 million, due mainly to increased employment and higher earnings. The liabilities of the fund are expected to increase by £89.2 million, due mainly to the full year costs of the 1997 budget improvements and to a projected increase in numbers of recipients on some schemes, mainly contributory pensions.
Subhead
|
1997 Forecast Outturn
|
1998 Estimate
|
Change 1997 over 1998
|
|
£000
|
£000
|
%
|
Sickness Benefit
|
178,400
|
188,700
|
6
|
Disability Pension
|
200,700
|
204,600
|
2
|
Maternity Benefit
|
34,600
|
41,800
|
21
|
Health and Safety Benefit
|
140
|
200
|
43
|
Adoptive Benefit
|
100
|
100
|
–
|
Treatment Benefit
|
28,200
|
30,300
|
7
|
Old Age (Contributory) Pension
|
327,000
|
335,400
|
3
|
Retirement Pension
|
338,800
|
358,100
|
6
|
Unemployment Benefit
|
212,800
|
217,700
|
2
|
Widow(er)s/Orphans
|
379,800
|
401,000
|
6
|
Deserted Wife's Benefit
|
74,700
|
70,900
|
-5
|
Death Grant
|
1,000
|
1,000
|
|
Occupational Injuries
|
47,800
|
50,600
|
6
|
Redundancy and Insolvency Payments
|
16,000
|
16,300
|
2
|
Equal Treatment
|
7,000
|
2,000
|
-71
|
Total Benefits
|
1,847,040
|
1,918,700
|
4
|
Administration
|
95,160
|
102,800
|
8
|
(A) Total Expenditure
|
1,942,200
|
2,021,500
|
4
|
Income
|
|
|
|
Income from PRSI Contributions
|
1,920,000
|
2,015,000
|
5
|
Investments
|
250
|
100
|
-60
|
Rent
|
15
|
15
|
|
Reciprocal Arrangements
|
85
|
85
|
|
(B) Total Income
|
1,920,350
|
2,015,200
|
5
|
Excess of Expenditure over Income (A-B)
|
21,850
|
6,300
|
-71
|
Deduct:—Opening Overdraw
|
9,850
|
0
|
100
|
Subhead B
|
12,000
|
6,300
|
-48
|