§ 72. Sir F. Bennettasked the Secretary of State for Social Services what percentage proportions of the regular weekly retirement pension now derive from 141W accrued social insurance contributions, and from supplementation from the general Exchequer respectively.
§ Mr. DeanThe National Insurance Fund, from which retirement pensions are paid, is financed on a pay-as-you-go basis. About 83 per cent. of the fund comes from current contributions of insured persons and employers, and about 15 per cent. comes from taxation by way of the Exchequer supplement.
On an actuarial calculation, assuming 5 per cent. interest, the proportion of the current standard pension covered by the contributions of a single man who has paid an average of 50 flat-rate national insurance contributions a year since the scheme started in 1948 and has also paid the maximum graduated contributions, and who reaches pension age and retires today, would be about 19 per cent.; about the same proportion would be covered by the contributions paid by the man's employer. For a married man whose wife is five years younger than himself, the proportion would be about 8 per cent. in either case.
§ Mr. Farrasked the Secretary of State for Social Services by how much retirement pensions on average have increased since June 1970 expressed as a percentage.
§ Mr. DeanThe increase in cash terms in the standard rates of retirement pension between June 1970 and October 1973 will be 55 per cent. if the uprating just proposed is approved by Parliament.
§ Mr. Farrasked the Secretary of State for Social Services by how much disability pensions on average have increased since June 1970 expressed as a percentage.
§ Mr. DeanThe current rates of war disablement pension and of industrial disablement benefit represent an increase of 331 per cent since June 1970.