§ Mr. MeacherTo ask the Secretary of State for Social Security what would be the annual cost if there were no increase in national insurance contributions, if the age of retirement for men were reduced to 60 years; and by how much national insurance contributions would have to rise if there were no Exchequer payments to meet the increase in cost.
§ Mrs. Gillian ShephardThe latest estimates, based on 1985–86 benefit rates, of the gross and net costs to public funds of reducing state pension age for men to age 60 are £4,200 million and £3,000 million respectively. Because of the number of changes affecting benefits, contributions and the labour force in the intervening period, I regret that it is not possible without disproportionate cost to relate such figures to 1990–91 contribution rates. However, the gross 1985–86 cost was equivalent to 18 per cent. of the national insurance fund's outgoings in that year.