HC Deb 05 May 1972 vol 836 cc233-4W
Mr. Oakes

asked the Secretary of State for Social Services what will be the average pension to a person in 1975 who has fully contributed to the Graduated Pension Scheme.

Mr. Dean:

A man retiring from regular employment at minimum pensionable age in April, 1975, who has paid graduated contributions at the maximum rate since the scheme began in April, 1961, will be entitled to a graduated pension of £1.93 a week in addition to his flat-rate pension. A woman will be entitled to a graduated pension of £1.60 a week. Both amounts take into account the higher contributions from next October.

Mr. Oakes

asked the Secretary of State for Social Services what is his estimate of the amount of weekly pension lost to contributors to the Graduated Pension Scheme who were earning £20, £30 and £40 per week, respectively, on the basis of termination of the scheme now.

Mr. Dean:

For each complete tax year contributions paid at the current rates by men, not contracted out, with earnings of £20, £30 and £40 a week earn approximately 10p, 18p and 25p a week graduated pension respectively. The corresponding figures for women are 8p, 15p and 20p.

Mr. Oakes

asked the Secretary of State for Social Services how many private occupational pension schemes are at present contracted out of the Government scheme.

Mr. Dean:

It is estimated that at 31st December, 1971, 27,918 private occupational schemes, covering about 2.3 million employees and 482 schemes in the public sector and overseas schemes, covering about 3 million employees, were contracted out of the Government graduated pension scheme.

Mr. Oakes

asked the Secretary of State for Social Services what is the total annual income from contributions under the graduated pension scheme.

Mr. Dean:

It is estimated that the income from graduated contributions paid by employers and employees in the financial year ending 31st March, 1972, will be about £1,060 million. The national insurance scheme is financed on a "pay-as-you-go" basis and although all graduated contributions qualify for graduated pension, the graduated contribution income is largely required to finance the current national insurance flat-rate benefits.