CLAUSE 19.—(Amendment of s. 43 of Pensions Act as to increased contributions.) (Hansard, 8 July 1935)

§ Mr. RHYS DAVIES

I beg to move, in page 15, line 42, to leave out Subsection (1).

This Amendment is proposed in order to secure some information from the right hon. Gentleman as to the reasons why there is to be an increase in the contribution of the woman without an equivalent contribution from the employer. It has always been understood, ever since the pensions scheme came into operation, that whenever a ½d. or 1d. per week has been added to the contributions of the man or the woman, an equivalent increase is put on the employer. This Clause refers to the woman only, and I want to press my point because the actuary's report on contributory pensions is not very optimistic, and it seems to me that the principle which has applied all along of calling upon the employer to increase his contribution when the State imposes an increase on the worker should apply in this instance.

§ Sir K. WOOD

Employers have from time to time made representations that payments of a halfpenny should be avoided. It is the principle of the Act that, apart from that consideration the contributions should be shared equally between employers and employed. When the additional payment becomes payable it will make the contribution by the employer equal to that of the employé. The principle of the Act is thus followed, and it will be followed at the end of the decennial periods in 1946, at the end of which an extra 1d. will be paid by the employer, making his contribution 8d. as against 7d. for the woman. At the end of a further decennial period it will be 92 adjusted again. We are maintaining the principle of equal contributions, but this Clause will avoid the payment of the halfpenny.