Quote:
Originally Posted by heero_yuy
Wrong. There is no "fund" or magic pot of money. Taxes and NI are gathred and then spread out again at the same time. No surplus and yes it IS the taxpayer who pays directly for benefits.
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Quote:
Originally Posted by Chris
You are totally wide of the mark here. NI is not ring-fenced. When it is collected, it is nominally held separately from other Treasury income but in practice that's just a paper exercise. The proceeds of NI are, and have always been, allocated across government spending according to the will of the government of the day, and benefits, even contributions-based ones, are paid out of current tax receipts regardless of whether enough NI is being collected to pay for it all.
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Not correct, although the surplus from the NI fund is often borrowed by Governments.