§ Mr. Ralph Howellasked the Secretary of State for Social Services what would be the savings if all national insurance, excluding means-tested benefits, were increased by 11 per cent. next November; and if he will publish figures tabulating those savings according to main benefit categories and also by comparison with the savings proposed in the Social Security (No. 2) Bill.
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§ Mrs. ChalkerColumn 1 of the table below gives the savings to the national insurance fund in a full year if the current rates of the benefits listed were to be increased by 11 per cent. instead of 16½ per cent. The net reduction in public expenditure would depend on the amount by which means-tested benefits were increased. Column 2 gives the savings to the fund in a full year from uprating the current rates of the benefits specified in clause 1 of the Social Security (No. 2) Bill 1980 by 11½ per cent., instead of 16½ per cent., under the powers contained in that clause.
Column 1 Full year difference between 11 and 16½ per cent. increase in current rates Column 2 Full year savings to National Insurance Fund under clause 1 of the Social Security (No. 2) Bill 1980; difference between 11½ per cent. and 16½ per cent. increase £million £million Retirement pension 545 Widows benefit 32 Invalidity benefit 62 55