Was UK National Insurance meant to cover all welfare payments from an earmarked fund?

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The Politicus
Feb 13, 2022 11:57 PM 0 Answers
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In the UK, National Insurance was introduced as a means of paying for health, welfare and pensions. The original 1911 act created a fund that was paid into by workers, employers and the Treasury and from which illness and unemployment benefits were made. Later, the scheme was extended to cover pension payments and to fund the NHS. However, my understanding is that National Insurance payments go into the general tax pot and are not now separated and earmarked for their original purpose, partly because the spending on the welfare state is much higher than the amount raised by National Insurance.

Am I right in thinking that the intention of National Insurance was to create an independent fund, separate from other tax revenues and dedicated to health, pensions and welfare benefits? I can't find anything online that explicitly states this.

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