§ Mr. Gallacherasked the Chancellor of the Exchequer whether he has given his consideration to the resolution on old age pensions, passed at a conference in Edinburgh, endorsed by the Lochgelly Co-operative Women's Guild and sent to him by the hon. Member for West Fife; and what statement he has to make on the Government's readiness to grant these demands?
§ Sir K. WoodI have considered the resolution referred to. The matter will no doubt be discussed in the Debates this week.
§ Mr. Woodburnasked the Chancellor of the Exchequer what would be the estimated extra cost of raising old age pensions to 30s. per week at the ages at present covered, based on no other condition that retiral from gainful work; and what this amount would represent in 1606W additional contributions from existing contributors or, alternatively, what it would require as an additional Income Tax charge per £1?
§ Sir K. WoodThe annual cost of paying pensions of 30s. a week to all men over 65 and all women over 60, subject to no conditions except retirement from gainful occupation, is estimated to exceed by about £300,000,000 the annual cost of contributory, old age and supplementary pensions under existing arrangements to persons of those ages. This, excess would rise with the growth of the population of pension age. £300,000,000 a year is equivalent to about 6s, per week per head of the population now insured for contributory pensions, and about 5s. per week per head of the population of working age, other than housewives. As regards Income Tax, 1s. in the £ on the standard rate of tax may be regarded as equivalent to about £100,000,000, and on this basis an additional charge of £300,000,000 would involve a rise of 3s. in the standard rate of tax.