34 and 35. Mr. Milianasked the Minister of Pensions and National Insurance (1) how much it would cost in the year 1963 to pay a full death grant of £25 in the case of the death of men born between 5th July, 1883, and 5th July, 1893, and women born between 5th July, 1888, and 5th July, 1898;
(2) if he is aware of the hardship that can arise on the death of a man born before 5th July, 1883, or a woman born before 5th July, 1888, because no death grant is payable; and how much it would cost in the year 1963 to pay a death grant of £25, or of £12 10s., respectively, in these cases.
§ Mrs. ThatcherTo pay death grant on the death of men born before 5th July, 1883, and women born before 5th July, 1888, is estimated to cost £5½ million if the full grant of £25 were payable, or £2¾ million if the half-rate grant of £12 10s. were payable. To pay the full grant in respect of deaths of people whose ages only qualify them for the half-rate grant would entail an additional cost of nearly £2 million a year. My right hon. Friend has no evidence that the transitional arrangements which the hon. Member has in mind are causing hardship.
§ Mr. MillanWhatever the justification for making these discriminations in 1948, is it not time to look at them again, 14 years later? Is the hon. Lady aware that despite what she has just said, there is hardship, particularly on the death of an old person for whom there is not any death grant at all? Of these people the males are all 79 years of age or over, and quite a small sum would be involved in giving the death grant. That would save a great deal of the present humiliation of the survivor of an aged couple when there is no death grant.
§ Mrs. ThatcherDeath grant is a benefit under a contributory scheme, and we think that it would be quite wrong to give a benefit for which no contributions have been paid. The hon. Member says that quite a small amount is involved here, but £7½ million in total is not a small amount. In fact, an increase of £7½ million a year would be more than the present annual expenditure on death grant, which is £6 million.
§ Mr. MillanTo bring the very oldest people on to half death grant would cost only £2½ million. Could not even that small step be taken?
§ Mrs. ThatcherTo pay the half death grant was part of the transitional arrangements made for those within 10 years of pensionable age in July, 1948. That was the bargain then made, and the reasons for making it are as valid now as they were then.