§ 94. Mr. Hamiltonasked the Minister of Pensions and National Insurance what has been the fall of the purchasing power of the basic retirement pension for a single person from the date of the granting of the last increase; and what proportion of that increase the fall represents.
§ Miss PittOn the basis of the Retail Prices Index, the fall has been 3s. since April, 1955, when the last increase came into operation. This is less than half the increase.
95. Miss Leeasked the Minister of Pensions and National Insurance the cost to the State of the present retirement scheme; and if he will give an estimate of the cost of substituting a minimum of 60 per cent. of the average yearly earnings of the pensioner during the previous 40 years.
§ Miss PittRetirement pensions are costing the National Insurance Fund about £450 million a year currently, which on the present basis would rise to 159W about £800 million in 25 years' time. I am afraid that my right hon. Friend has not been able in the time available to obtain data on which any estimate, as requested in the second part of the Question, would have to be based. I should add that there are serious gaps in the official information about average earnings over the past 40 years.