HC Deb 11 December 1953 vol 521 cc289-90W
Mr. Gaitskell

asked the Minister of Pensions and National Insurance what increase in standard weekly benefits would be required in order to restore them to the same relationship to National Assistance rates, allowing 10s. a week for rent, as obtained in July, 1948, when the

TABLE 1
(1) (2) (3) (4)
1953 July, 1948 October, 1946
Single Married Single Married Single Married
National Insurance standard benefit rates expressed as a percentage of the assistance rate Per cent. Per cent. Per cent. Per cent. Per cent. Per cent.
72.2 78.3 76.5 84.0 86.7 93.3
TABLE 2
Increase in National Insurance benefit rates necessary to restore their relationship to National Assistance rates (Table 1, Cols. 3 and 4) National Assistance
Approximate increase for Estimated additional annual cost £ million Estimated annual saving £ million
Single rate Married rate For all benefits For retirement pensions only For all benefits For retirement pensions only
Now In 25 years Now In 25 years
s. d. s. d.
On July 1948 basis 2 0 4 0 31 53 22 39 8 6
On October 1946 basis 6 6 10 6 67 120 17

National Insurance Act came into operation, and in October, 1946, when the increased pensions, became payable, respectively; what the increases would cost in total and for retirement pensions, respectively; and what savings would be achieved on National Assistance as a result of these increases.

Mr. Peake

Table 1 indicates the relationship between National Insurance benefit rates and assistance rates, allowing 10s. for rent. Table 2 indicates the increase in National Insurance benefit rates necessary to restore their relationship to the Assistance rate, together with the estimated additional annual cost of these increases and the consequential savings in National Assistance. The figures for October, 1946, relate to pensions only and are based on the higher pension rates then introduced and on the rates of Supplementary Pensions payable by the Assistance Board at that time.