HC Deb 07 July 1969 vol 786 cc926-7
42. Sir B. Rhys Williams

asked the Secretary of State for Social Services if he will take steps to prevent a reduction in the proportion of employed people contracted out of the State graduated pension schemes following Her Majesty's Government's decision no longer to adhere to the existing basis for relating benefits to contributions for those contracted in.

Mr. Ennals

No, Sir. Employers, in consultation with their employees, will continue to have a free choice in this matter.

Sir B. Rhys Williams

So the Minister does not mind if the contracted out section declines dramatically?

Mr. Ennals

It is, as I said, entirely for the employers to decide. There is no evidence that there will be any substantial increase either in the contracted out element or in the number of those who remain contracted in.

Lord Balniel

Is it the objective of the Department, then, to increase the number of persons contracted out, to reduce it, or to keep it exactly the same as under the Boyd-Carpenter scheme?

Mr. Ennals

The intention is that there should be opportunities for occupational pension schemes to maintain their position and to expand, but, at the same time, we want properly to protect the finances of the State scheme.