Retirement Pensions

HC Deb 27 January 1958 vol 581 cc5-6W

62. Commander Maitland

asked the Minister of Pensions and National Insurance the capital value of a retirement pension for a single man of normal health who reaches the age of 65 years on 1st February, 1958.

Mr. Boyd-Carpenter

£1,300.

63. Commander Maitland

asked the Minister of Pensions and National Insurance the capital value of the retirement pension of a married couple who come into pension on 1st February, 1958; and what is the total maximum value of the contributions which could have been paid to obtain it.

Mr. Boyd-Carpenter

The capital value of the retirement pension for a married man, with a wife five years younger than himself, who qualifies for pension on 1st February, 1958, is £2,650. The maximum value of the contributions for this which could have been paid jointly by him and his employer would be £200.

Mr. Iremonger

asked the Minister of Pensions and National Insurance what increase in the standard rate of Income Tax in the financial year 1957–58 is estimated as required to increase retirement pensions to £3 a week; and what increase in the rate of National Insurance contributions, divided equally between employers and employees without adding to the Exchequer contribution, is estimated as required to achieve the same object.

Mr. Boyd-Carpenter

The extra cost of an increase in retirement pensions to £3 a week, including pensions for married women on their husband's insurance, would be about £180 millions in 1958–59, which is approximately equal to the product of just over 8d. on the standard rate of Income Tax in the current financial year, or of an extra 3s. 7d. a week on the joint contribution in respect of employed men, with proportionate increases in other rates in both cases. The extra cost of a £3 pension would increase progressively, and would rise to about £280 millions a year by 1979–80, which would then require an addition of 5s. 8d. a week to the joint contribution for employed men. If corresponding increases in the rates of other National Insurance benefits were made, the cost would be further increased to nearly £260 millions in 1958–59, which is the product of about 1s. on the standard rate of Income Tax or 5s. 2d. on the joint contribution for an employed man.