93. Mr. H. D. Hughesasked the Minister of National Insurance what he estimates would be the total additional cost of re-instituting a pension of 10s. a week, without retirement conditions, for men at 65 and women at 60 years of age for all persons insured for five years prior to 5th July, 1948.
§ Mr. SteeleSubject to certain assumptions it is estimated that this proposal would cost about£4 million a year at the end of the first year, rising to£14 million a year in five years' time and gradually declining thereafter. The principal assumptions made are (1) that present ages of retirement remain unchanged; (2) that all those who do not now retire at age 65 men and 60 women would take the option of a 10s. pension, cease to pay contributions and forego increments; (3) that the increase to 26s. would be given at retirement or at age 70 men and 65 women whichever is the earlier; (4) that unemployment and sickness benefit would not be payable after age 65 men and 60 women and that the people concerned would have to have recourse to National Assistance.