§ 84. Mr. Lewisasked the Minister of National Insurance what action he intends to take to ensure that benefits paid under the National Insurance Scheme retain their purchasing power.
§ Mr. PeakeThe National Insurance Act, 1952, increased benefit rates in order to restore their purchasing power to the level of July, 1948. I do not think that anything that has occurred since those increases were made calls for further action on my part at the present time.
§ 88. Mr. Holtasked the Minister of National Insurance what would be the extra annual charge now falling on the Treasury if old age pensions, sick benefit and unemployment pay had been increased to keep pace with the rise in the cost-of-living index since November, 1951, and without any further increases in contributions than those already made; and similarly what would be the further charge on the Treasury if these pensions and benefits had been increased to keep pace with the increased cost of living since 1947.
§ Mr. PeakeThe increases in the standard rates of retirement pensions and unemployment and sickness benefits, made by the Act of 1952, have in fact more than covered any rise in the cost of living since November, 1951. As regards the second part of the Question, if the rates established by the National Insurance Act, 1946, were increased to compensate for the rise in the cost of living since 1947, without further increase in contributions, the extra annual cost would at present be rather more than £30 million, rising to about £55 million in 25 years' time.