§ Mr. Tim Rentonasked the Minister for the Civil Service (1) what was the total cost to the taxpayer of public sector pensions in 1970–71 and 1975–76; and what is the anticipated total cost in 1976–77.
(2) what percentage of GNP was absorbed by public sector pensions in 1970–71 and 1975–76; and what is the anticipated percentage in 1976–77.
§ Mr. Charles R. MorrisI can answer only for the public service schemes over which I have a responsiblity, mainly those applying to civil servants, teachers, and members of the National Health Service, the police and fire services, local government and the Armed Forces. The cost to the taxpayer of the benefits paid by these schemes must take account of contributions paid, directly or indirectly, by deductions from salary, and cannot readily be accurately calculated, but the following figures give a reasonable approximation: 1970–71, £200 million; 1975–76, £450 million; 1976–77, £650 million. These figures represent approximately 0.5 per cent. of the gross national product924W in 1970–71 and 1975–76. No estimate is available of GNP in 1976–77.
§ Mr. Arthur Lewisasked the Minister for the Civil Service whether in view of the savings to the Exchequer caused by the operation of the non-contributory pension scheme for civil servants, he will extend this system to include local government officers, police, firemen, miners and all other public servants.
§ Mr. Charles R. MorrisWhatever the advantages in such a move, it must be recognised that any change would entail heavy initial administrative costs, and I am not convinced that the public interest would at present be served by a general upheaval in those pension schemes for which I have a co-ordinating responsibility.