§ Mr. Fernyhoughasked the Secretary of State for Social Services what was the total cost in 1971 of national insurance pensions and unemployment benefit, 39W respectively, broken down between employers, employees and the Exchequer grant.
§ Mr. DeanThe total cost in 1971 of national insurance retirement pensions and unemployment benefit was £1,920 million and £208 million. The proportion of the National Insurance income contributed by employers, employees and the Exchequer supplement is about 43 per cent., 36 per cent. and 16 per cent., respectively.
§ Mr. Fernyhoughasked the Secretary of State for Social Services by what amount employers and employees contributions and the Exchequer grant would need to be increased on the assumption that there was a 10 per cent. increase in pensions over the five year period from 1973 onwards.
§ Mr. DeanContribution income would need to be increased by a rather bigger proportion because of the growing number of pensioners. The Exchequer grant would amount to about 18 per cent. of the value of the combined contributions paid by employers and insured persons. How far, if at all, contribution rates would need to be increased would depend on the rise in earnings and the consequential increase in income from earnings-related contributions.