§ Mr. Deanasked the Secretary of State for Social Services what part of the current pension is paid for by the past contributions of the pensioner; and what part is paid for from taxation for a single man and a married couple, respectively.
§ Mr. EnnalsUnder the pay-as-you-go principle, retirement pensions are paid out of the current income of the National Insurance Fund, of which about 15 per cent. comes from taxation through the Exchequer supplement. On an actuarial basis, the proportion of the current flat-rate pension covered by the pensioner's past contributions would depend on a410W number of factors, including the pensioner's age, marital status, date of retirement and contribution record, and on the rate of interest adopted. Assuming 5 per cent. interest and the payment of maximum contributions by employee and employer since July 1948, the proportion of the rate now payable to a single man who reached age 65 and retired at the beginning of this year would be about 37 per cent.; for a married couple the proportion would be about 17 per cent. of the current rate on the assumption that the wife is 5 years younger than her husband.