HC Deb 01 February 1965 vol 705 cc697-8
2. Mr. Shepherd

asked the Minister of Pensions and National Insurance what percentage of the retirement pension is paid for by taxation and by contributions, respectively.

The Joint Parliamentary Secretary to the Ministry of Pensions and National Insurance (Mr. Norman Pentland)

Retirement pensions, like other National Insurance benefits, are paid out of the National Insurance Fund. It is estimated that, of the total income of the Fund in 1965–66, nearly 16 per cent. will come from the Exchequer and just over 81 per cent. from insured persons and employers, with the balance coming from investment income.

Mr. Shepherd

Can the hon. Gentleman tell the House in monetary terms the actual cost to the taxpayer of the pensions for the current year?

Mr. Pentland

No, I am afraid I cannot. There is no straightforward way of expressing the Exchequer's or contributors' share of the scheme because of the incidence of the excess of income over expenditure, or vice versa, each year.

Sir K. Joseph

I realise that it is a slightly different question, but can the hon. Gentleman give the proportions of the individual retirement pension paid by the contributor, the employer and the taxpayer?

Mr. Pentland

Not without notice.