HC Deb 21 May 1973 vol 857 c30W
Mr. Dell

asked the Secretary of State for Social Services whether he will give his estimate of the net payments, after tax, by employees and employers separately, to the Reserve Pension Scheme, on the assumption of a 7 million membership, where the 4 per cent. contribution is equally divided between employer and employee and both have tax relief and where the employee contributes 1½ per cent. without tax relief and the employer 2½ per cent. with tax relief.

Mr. Dean

Total contributions to the reserve pension scheme, estimated by the Government Actuary on an assumed membership of 7 million and on the basis of current earnings to be of the order of £300 million a year, would consist of payments as to £150 million equally by employers and employees if the 4 per cent. contribution were divided equally between them and as to some £190 million by employers and £110 million by employees if the former paid contributions at 2½ per cent. and the latter at 1½ per cent. Tax relief whether to employer or to employee would make no difference to the payments into the scheme, but for estimates bearing on the net cost I would refer the right hon. Gentleman to the reply my hon. Friend the Minister of State, Treasury gave to the hon. Member for Islington, South-West (Mr. George Cunningham) today.