§ Mr. AMERYasked the Chancellor of the Exchequer what is the present estimated margin of safety on the initial benefits provided by Part I. of the National Insurance Bill; whether this margin is based on the assumption that the medical benefit will be provided at a contract rate of 4s. 6d. a head with drugs at 1s. 6d. a head; to what extent initial benefits would have to be reduced if the average contract rate was 7s. 6d. without drugs; firstly, in the case of all insured persons; secondly, in the case of those earning incomes not, exceeding £2 a week?
Mr. McKINNON WOODThe estimated margin is 42d. a week in the case of men, and 53d. in the case of women. The answer to the second part of the hon Member's question is in the affirmative. To increase the cost of medical benefit by two-thirds at the expense of the insurance fund as suggested by the hon. Member would cost another ½d. a week, which is practically equivalent to the absorption of the margin. There is no material available for calculating the answer to the last part of the question.
§ Mr. AMERYIs not the margin of 4 mentioned in the right hon. Gentleman's reply very much nearer a farthing, and is not the addition of the extra 2s 6d. to the contract rate considerably over a half penny?
Mr. McKINNON WOODNo, Sir. In the case of men it is a little under a half penny, and in the case of women a little over a halfpenny.