§ 94. Mr. Errollasked the Minister of National Insurance what proportion of the weekly old age pension is not covered by the contributions of employer and employee paid during the latter's insurable life.
§ Dr. SummerskillFor a person who becomes insured at the minimum age, one-sixth of the cost of the retirement pension is not covered by the contributions of himself and his employer. For the majority of persons now insured (who entered the new scheme in 1948 at higher ages, including those who were insured under the superseded schemes of pensions insurance for much smaller benefits) the proportion not covered is much larger—the higher the age at entry the smaller the proportion of the cost met from the contributions of the insured and his employer.
§ 97. Mr. T. Brownasked the Minister of National Insurance if she will give the estimated cost to her Department and the Treasury, per annum, to raise the basic rates of pensions by 4s. for a single old age pensioner and 6s. for a married couple.
§ Dr. SummerskillAbout £36 million a year at present, rising to about £75 million in 1977.
§ 99 and 100. Mr. Summersasked the Minister of National Insurance (1) what proportion of the 2s. annual increment to retirement pensions, earned by those who postpone retirement, is attributable to the contributions paid in respect of them;
(2) if she will give an estimate of what would be the annual effect on the National Insurance Fund of excusing those of pensionable age and their employers from payment of contributions without altering their present rights to increment for postponement of retirement.
§ Dr. SummerskillThe increments to retirement pensions earned by postponement of retirement are broadly equivalent to the amount of the pension forgone and 253W additional contributions paid after attainment of pensionable age. Only a small proportion of the increment is due to the extra contributions. If no contributions were required to be paid by employers of persons over pensionable age or by insured persons themselves between pensionable age and age 70 (or 65 in the case of a woman), the loss to the National Insurance Fund would at the present time amount to over £12 million a year. Not all of this is, however, paid by or in respect of people who will become entitled to increments.