§ Mr. Llewellynasked the Minister of National Insurance what administrative difficulties prevent the payment of increased old age pensions on 1st June, 1951; what would be the annual cost of extending the proposed increases to women at 65 years of age and men at 70 years of age, to women at 60 years of age and men at 65 years of age, respectively; by how much individual contributions would have to be increased to meet the 195W added cost of such increases, if no contribution was made from the Exchequer: and by how much the purchasing power of 26s. has fallen since the basic pension of 26s. took effect.
§ Dr. SummerskillI regret that I cannot within the limits of a Parliamentary reply give details of the complicated administrative problems involved in the adjustment as from a definite date of the benefits of over three million people. I would, moreover, point out that the Bill to give effect to the proposals outlined in the Budget has not yet received its Second Reading.
The annual cost to the National Insurance Fund of extending to men below 70 years of age and women below 65 years the increases in retirement pensions 196W which are proposed for men and women who have reached those ages would be just under £10 million immediately, rising to £15 million in 15 years' time and to £16–£17 million in 25 years: but if, as is probable, the effect were to encourage earlier retirement than at present, the cost would be greater. If the cost were spread uniformly over all contributors without any additional contribution by the Exchequer, it would mean an immediate addition of between 2d. and 2½d. to contributions and more in later years as the emerging cost of pensions increased.
As regards the last part of the Question, I would refer the hon. Member to the answer given by the Financial Secretary to the Treasury to the hon. Member for Leigh (Mr. Boardman) on 26th February last.