HC Deb 08 March 1965 vol 708 cc5-7W
Mr. Higgins

asked the Minister of Pensions and National Insurance what is the most that any man entering the pension scheme in 1926, retiring at 65 years of age and now drawing a National Insurance pension, contributed towards the fund; what these contributions would amount to if compound interest had been added to them at 3½ per cent. and 5 per cent., respectively; and what the corresponding figures are for a woman.

Mr. Pentland

I assume that the hon. Member is referring to contributions for retirement pension alone by employee and employer together. Counting for this purpose contributions under the Contributory Old Age Pensions Acts up to July, 1948, the retirement pension element of the national insurance contribution between then and April, 1961, and an estimated allocation to retirement pension from the flat-rate national insurance contribution since then, and assuming that maximum graduated contributions have been paid since 1961, the most that could have been paid for a man at the end of March, 1965 would be £441. Accumulated at 3½ per cent. compound interest, this would have amounted to £583, and at 5 per cent. to £674. Corresponding figures for a woman would be £410, £534 and £612, respectively.

Mr. Higgins

asked the Minister of Pensions and National Insurance what the capital value of standard National Insurance pensions will be for a single man, aged 65 years, a single woman aged 60 years, and a married couple of these ages, on the date when the new pensions rates come into effect assuming no subsequent increases.

Mr. Pentland

About £1,900, £2,800 and £4,100, respectively, assuming an interest rate of 3½ per cent., for the standard flat-rate pension.

Mr. Harold Walker

asked the Minister of Pensions and National Insurance how many retirement pensioners are now in receipt of a National Assistance supplement; and how many of them will receive the full benefit of the new pension increase.

Mr. Pentland

About 1,154,000; some of these supplements provide for the requirements of a married couple both of whom are pensioners. All will receive the full benefit of the pension increase apart from a small minority of some 25,000 pensioners who are living in old people's homes or similar accommodation, or are paying an inclusive charge for board and lodging to a private landlady. In these cases the supplement has to be related primarily to the charge payable for the pensioner's maintenance, but most of them will have some direct benefit from the pension increase.

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