Mr. Edward M. Taylorasked the Minister of Social Security if she is aware that contributions in respect of earnings related unemployment benefit and redundancy payments have to be made in the case of employed persons over the normal retirement age although such persons can obtain no benefit from either scheme; and if she will arrange for such persons to be exempt from contributions towards these schemes.
§ Miss HerbisonThe cost of earnings-related short-term benefits is being met by an increase in graduated contributions on earnings over £9 a week. It was not feasible to exempt particular groups of 5W people from this extra contribution even though in some instances they would not be eligible for earnings-related supplements. All graduated contributions do however count towards graduated pension.
Employed persons do not contribute to the redundancy fund. Contributions to this fund are payable only by employers as a general charge on employment and are collected by means of a surcharge on the flat-rate National Insurance contributions in respect of all employed persons over the age of 18.