HC Deb 29 January 1968 vol 757 cc860-1
11. Mr. Biffen

asked the Minister of Social Security what proposals she has to encourage the private provision of retirement pensions and other aspects of social security, and at the same time to concentrate public tax-financed social security on those in greatest need.

Mrs. Hart

The part at present played by private provision of retirement pensions and other benefits is being borne in mind in the planning of the new earnings-related pension scheme. Any selective benefits to meet special areas of need, such as we have in the present supplementary benefits scheme, must be provided in the context of a comprehensive system of contributory national insurance.

Mr. Biffen

In view of the restraint which is now promised for public expenditure from the Treasury Bench, would not the right hon. Lady agree that it is very much in the national interest that there should be a rapid and significant rise in the amount of social security which is privately financed?

Mrs. Hart

We have always had it in mind that occupational and private pension schemes had a very important place, and our intention in working out a new earnings-related pension is to enlarge the total provision for retirement and other contingencies and certainly not reduce it. To that extent the hon. Gentleman has the Government's sympathy for what he says.

Mr. Mendelson

Would my right hon. Friend remember with reference to special needs that, in addition to those on pensions, 8 million workers on low incomes will be having the burden particularly concentrated on their shoulders? Will she therefore not proceed with any scheme for prescription charges and any rebate of them, but reconsider the whole matter so that we have a situation in which the position of lower-paid workers can be carefully considered?

Mrs. Hart

That is not a matter purely for me. As the Government have made very clear throughout our pursuance of the incomes policy, we attach importance to seeing that the lower paid should have every opportunity in any wage agreements which are negotiated to improve their standard of living. This is the basic core of the problem to which my hon. Friend is drawing attention.