§ Mr. Wootton-Daviesasked the Chancellor of the Exchequer what would be the cost of giving every person who reaches the age of 60 years 30s. per week without reference to means; how much this figure would be increased if it were based on the 1939 cost of living; and what difference the withdrawal of Government subsidies would make.
§ Sir J. AndersonAt the present time the cost of paying old age pensions at 30s. a week, without reference to means, to all persons aged 60 years and over in Great Britain would be about £390,000,000 a year greater than the cost of existing pensions (including supplementary pensions) to persons of those ages. The cost-of-living index is now about 30 per cent. above the mid-1939 figure, and if a rate of 39s. a week were substituted for 30s. the cost of the proposal would be £550,000,000 a year instead of £390,000,000. If food subsidies were withdrawn, the cost of living might, on certain assumptions, be expected to rise to 46 per cent. above the 1939 level. 833W If a rate of 44s. were substituted for that of 30s. the cost of the proposal would rise to £650,000,000. The cost of these increased pensions would rise substantially in future with the growth of the population of pensionable age. The above figures do not include any credit for such increases of contributions as might be made if the pension rate were altered to the figures mentioned.