§ Mr. Trotterasked the Secretary of State for Social Services what are the improved benefits available following the increase in national insurance contributions as applied to a man earning £3,600 a year (a) as an employee and (b) who is self-employed together with the percentage increases which such improvements represent.
§ Mr. O'MalleyThe improvements in benefits payable next April to the employed and self-employed are set out in the Social Security Benefits Bill. In general terms, pensions and other long-term benefits are being increased by up to 16 per cent. and short-term benefits by about 14 per cent. The increased contributions under the Social Security Amendment Bill will also finance further improvements in benefits next December, the amount of which will be announced later.
At present the self-employed are paying about 40 per cent. of the cost of the benefits to which they are entitled. The Social Security Act 1973 increased this ratio to about 60 per cent. but this still leaves them with a substantial subsidy at the expense of other contributors to the scheme.