HC Deb 15 July 1985 vol 83 c51W
Mr. Deakins

asked the Secretary of State for Social Services what assumptions have been made about unemployment in assessing the burdens to be borne by people in employment in' meeting the costs of the state earnings-related pensions scheme in its first year of full operation.

Mr. Newton

Estimates for future levels of national insurance contributions needed to pay for benefits for people over pension age are on pages 45 to 51 of volume 3 of the Green Paper "Reform of Social Security" (Cmnd. 9519). These are based on a range of assumptions for earnings growth, unemployment levels and demographic trends. A central long-term assumption of six per cent. unemployment has been adopted for these estimates. The effects on contribution rates of unemployment assumptions of three per cent. and 10 per cent. are also illustrated.