§ Mr. Kenneth Clarkeasked the Secretary of State for Social Services how many representations she has received in response to the memorandum that she circulated on transitional arrangements for the phasing out of the married women's option to pay a reduced rate of national insurance contribution; when she expects to announce her decision on these arrangements; and whether she will make a statement.
§ Mrs. CastleI have received comments from the 12 interested organisations which I consulted on this matter. I am most grateful for their views, which I have now considered.
I have decided that women who have in force an option to pay contributions at the reduced rate in the last tax year of the present scheme should have the right to pay such contributions at the start of the new scheme. Thereafter they would retain that right as long as they remained either married women or widow beneficiaries, except that it would end if they chose to pay full contributions, or if they paid no contributions for a period of at least two complete tax years. Where a woman paid contributions at the reduced rate and was a member of a contracted-out occupational pension scheme, her employer would be liable to pay the contracted-out rate of contributions, instead of the full rate, in respect of her, and she would be provided with pension rights in the occupational scheme in the normal way.
I shall in due course lay draft regulations designed to give effect to these proposals.