§ 49. Dame Irene Wardasked the Secretary to the Treasury what was the cost of a retirement pension to a married woman contributing in her own right under the present Act reaching the age of 60 years on 1st June, 1964, and subject to full Income Tax relief in respect 137W of National Insurance contributions; and what was the cost in similar circumstances to a widow who has not been subject to Income Tax and has been unable to claim relief in respect of National Insurance contributions.
§ Mr. du CannThe present National Insurance contributions do not contain separate elements allocated to particular benefits, but on the basis of a reasonable allocation the cost of the retirement pension to an employed married woman contributing from October, 1946 to May, 1964, would be of the order of £120 in flat rate contributions plus up to £49 in graduated contributions. Tax relief in respect of this total of contributions against earnings liable to Income Tax at the standard rate throughout the period would amount to about £55. The earnings of a widow who was not liable to tax would be unlikely to attract graduated contributions. If she paid flat rate contributions these would be the same as those for the married woman.
§ Dame Irene Wardasked the Secretary to the Treasury what was the cost of a retirement pension to a man under the present Act reaching the age of 65 years on 1st June, 1964, and subject to full Income Tax relief in respect of National Insurance contributions, and the cost in similar circumstances to a man who has not been subject to Income Tax and unable to claim tax relief in respect of National Insurance contributions.
§ Mr. du CannOn the assumptions in my Answer to my hon. Friend's first Question, the cost to an employed man contributing from October, 1946, to May, 1964, would be of the order of £135 in flat-rate contributions, plus up to £49 in graduated contributions. For a taxpayer liable to Income Tax at the standard rate throughout the period the tax relief in respect of this total of contributions would amount to about £60. The man not subject to Income Tax would have paid the same flat-rate contributions but would probably have paid little, if any, graduated contributions.