§ Sir W. Robson Brownasked the Minister of Pensions and National Insurance what would be the gain to the Exchequer if employed pensioners and their employers were required to continue payment of National Health contributions; and what would be the amount of Income Tax which would accrue to the Exchequer from such employment.
§ Mr. N. MacphersonEmployers, of course, already pay their share of flat-rate National Insurance contributions for employed pensioners. If the pensioners themselves, including men over 70 and women over 65, were required to pay the share of these contributions which they are at present excused, the extra income for the Exchequer on account of the National Health Service would be about £2 million a year at present and there would accrue to the National Insurance Fund an extra yield of about £6 million a year, which would attract an extra payment from the Exchequer to the Fund of about £1½ million a year. My right hon. Friend the Chancellor of the Exchequer informs me that, assuming no change in earnings, Income Tax receipts would be reduced by about £1 million a year.