38. Mr. R. C. Mitchellasked the Secretary of State for Social Services what proposals 'he has to improve the pensions of those people who elect to continue working until after their 70th birthday.
§ Mr. PentlandPeople who work and contribute during the five years following minimum pension age earn increments to the retirement pension they eventually receive. These were last increased in October, 1967, and the Government have no plans to make further improvements at present.
Mr. MitchellWould my hon. Friend not agree that the rewards for someone who wishes to work these five years and forgo the pension during that period are completely inadequate in the present pension structure?
§ Mr. PentlandNo, Sir. There has been little connection between the timing of the new increase in benefit rates and the 926 increase in increment rates. The two coincided only in 1951 and 1967. In 1959 the increment increase was made independently of other benefit changes.
§ Mr. DeanDoes the hon. Gentleman recollect that selective employment tax is being increased by 28 per cent. today? Would not the best incentive for the over-seventies be to ensure that they do not have to pay it, or that their employers do not?
§ Mr. PentlandThat is a question not for me but for my right hon. Friend the Chancellor of the Exchequer.