Minister promises action to solve NI fund shortfall

The Treasury Minister is preparing to announce his strategy for dealing with the £10.4 million shortfall in the Island's National Insurance fund.

The government's latest report on the state of the NI Fund shows it went into deficit in the year to March 2014, for the second year running.

The previous financial year, the account was in the black to the tune of £14 million.

It means the amount paid out, mostly in state pensions, is greater than total NI contributions into the fund.

A consultants' report suggesting a swathe of changes needed to redress the balance, is due to be released to the public soon. The Ci65 document is understood to suggest transforming pensions and welfare benefits. 

Speaking earlier this autumn, Mr Teare said he was confident a new approach could make up the shortfall, to ensure state pensions remained viable for future generations.

But he said firm action would be needed to grasp the nettle: