Treasury Minister Eddie Teare says action must be taken as it's announced that this year's National Insurance shortfall will be ?10.4million.

The shortfall last year was ?14million and the fund will be exhausted by 2054 unless changes are made to the system, the government is warning.

In this financial year, ?190.2million will be spent on benefits, mainly on the state retirement pension, and ?78.2million on benefits like
income support and child benefit. National Insurance contributions will raise ?170million.

The figures will be laid before Tynwald this month.

Mr Teare said: 'The information in these accounts is further confirmation that the Island has reached a turning point in its welfare system. Following the detailed review of the system by the consultants Ci65, we must now start to make changes to ensure that our social security system is sustainable, fair and that it does not put an undue burden on future generations.'

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