§ 46. Mr. Gowerasked the Minister of Pensions and National Insurance the estimated approximate cost of increasing the basic rate of old age pensions by 10s. per week and by 5s. per week, respectively; the consequential saving in National Assistance payments in each case; and on the present basis of contribution, the additional weekly contribution required from employed persons in each case.
§ Mr. PeakeAs the reply contains a number of figures, I will, with permission, circulate it in the OFFICIAL REPORT.
§ Mr. GowerIs either of these figures of net increase of such dimensions as may lead to the hope that my right hon. Friend may be able to do something along the lines of one of them?
§ Mr. PeakeIt would be best if my hon. Friend looked at the figures and then put down another Question.
§ Mr. J. McKayIs the Minister aware that if he contrasted the 1946, and not the 1948, pension with the present index figure, he would have to pay 10s. extra, even now?
§ Following are the figures:
§ The estimated additional annual cost of increasing National Insurance retirement and contributory old age pensions by 10s. and 5s. a week, and the additional weekly contribution required for the employed man would be:
| — | For 5s. increase | For 10s. increase | |||||
| Total additional annual cost | Additional weekly contribution | Total additional annual cost | Additional weekly contribution | ||||
| £m. | s. | d. | £m. | s. | d. | ||
| Now | … | 56 | 8 | 112 | 1 | 5 | |
| 1977–78 | … | 110 | 220 |
§ One half of the additional weekly contribution would for employed persons be payable by the employer. Corresponding additions would be required to the contributions payable by other classes of insured persons.
§ The estimated annual saving in National Assistance payments is estimated to be of the order of £14 million if pensions were raised by 5s., and £25 million if they were increased by 10s.