Lieut.-Colonel D. WHITEasked the Chancellor of the Exchequer if he can state in tabular form the increased net annual charges on employers per head of employés, employed persons and the State, as a result of the provisions of the Widows', Orphans', and Old Age Contributory Pensions Bill and of the Unemployment Bill conjointly?
§ Mr. NEVILLE CHAMBERLAINThe subjoined table shows, as regards the
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— Contributions per Employed Person per Annum. Increased Charge to the State for the Year 1926–7. Net Increase resulting from Pensions Bill.* Reduction under Unemployment Insurance Bill. Net Increase. Employer. Employed Person Employer.† Employed Person Employer.† Employed Person s. d. s. d. s. d. s. d. s. d. s. d. pensions. £5,700,000 Unemployment Insurance.£2,200,000‡ Men … 16 0 16 0 8 0 8 0 8 0 8 0 Women … 8 0 8 0 4 0 4 0 4 0 4 0 Boys … 16 0 16 0 4 0 4 0 12 0 12 0 Girls … 8 0 8 0 4 0 4 0 4 0 4 0 * Combined health and pensions contributions. † No account is taken of the further reduction of 4s. 0d. for men and women (2s. 0d. for boys and girls) which is to be made when the outstanding Treasury advances do not exceed the debt at 31st December, 1925, and in the opinion of the Minister and the Treasury are not likely to exceed that amount. ‡ Subject to the contingent further increase of £425,000 a quarter. contributions of employers and employed persons coming within each of the three schemes, the increased net annual charge resulting from the provisions of the Widows', Orphans' and Old Age Contributory Pensions Bill taken in conjunction with the Unemployment Insurance Bill, and also the total increased annual charge to the State under these Measures for the year 1926–27. It has been assumed that on the average an employed person and his employer pay 48 contributions in the year. The charge to the State in respect of pensions includes the estimated additional cost of unrestricted old age pensions at 70, which increases progressively in subsequent years (see page 25 of the Report of the Government Actuary on the Financial Provisions of the Pensions Bill). The sum shown in the table as the additional State charge in respect of unemployment insurance is the estimated product of the increased Exchequer contribution of 1¼d. a week (¾d. for women, boys and girls). From 2nd January, 1928, the increased charge will be reduced to about £500,000 per annum, owing to the reduction in the Exchequer contribution of 1d. a week (½d. for women, boys and girls) which will then operate. On the other hand the Exchequer contribution is subject to a contingent further increase of 1d. a week (½d. for women, boys and girls) in any quarter during the deficiency period in which the average outstanding Treasury advances for that quarter exceed those outstanding on 31st December. 1925. This further increase is equivalent to about £425,000 a quarter.