HL Deb 08 November 1972 vol 336 cc344-5
LORD HALE

My Lords, I beg leave to ask the Question which stands in my name on the Order Paper.

The Question was as follows:

To ask Her Majesty's Government what is the total amount of flat rate additional contributions payable by a self-employed insured person who attained the age of 65 on January 1, 1968 (when his uninsured wife was over 60 years of age) and who retires on January 1, 1973; and what is the amount of the increment payable to him each week in respect of these additional contributions and of the 260 weeks pension which he has forfeited.

BARONESS YOUNG

My Lords, a self-employed man who worked continuously from January 1, 1968, until he reached the age of 70 on January 1, 1973, would have paid 029.84 in National Insurance contributions, including the National Health Service contribution, and would have earned increments of £1.53 a week for himself and 77p for his wife.

LORD HALE

My Lords, is it not the fact that this unfortunate man who goes on working to increase production, pays tax and surtax on it and is wholly deprived of a sum of over £2,500 for which he has qualified by age and contributions; that he is then called upon to pay the additional sum of £300, in order to qualify for increments based on a reduced expectation of life which do not amount to interest on the money, and is charged income tax and surtax on that?

BARONESS YOUNG

My Lords, my understanding of the position is that it has not been the practice of any Government since the beginning of the National Insurance scheme in 1948 to base the extra increments payable to a man who retires after the age of 65 on any actuarial calculation, and the decision was reached that there should be a small extra increase for the contributions paid. This has been the practice of all Governments since that time.

LORD HALE

My Lords, what about the £2,500 to which the man was entitled and of which he is deprived? Would not the noble Baroness agree that if he had spent a holiday in the ever blooming Mezzogiorno and fallen into the hands of the Mafia they would have taken only the money he had and would not have deprived him of his expectations?

BARONESS YOUNG

My Lords, I think I can only present the facts as they are. I cannot speculate on what might have happened in that particular case.