§ Sir B. Rhys Williamsasked the Secretary of State for Social Services what would be the gross and the net costs —after allowing for taxation, the consequential savings in supplementary benefits and other relevant factors—of ending the restriction of full eligibility for the main national insurance benefits at current rates through contribution record deficiencies; and the numbers affected in each case.
§ Mr. Alec JonesThe gross cost of paying a retirement pension at the full standard current Bill rate to every retired person over pension age in Great Britain who does not now satisfy the contribution conditions for such a pension is about £1,050 million a year. About three million persons would receive a pension or a higher pension. There would be savings of about £110 million a year on supplementary benefit. The income tax yield might be of the order of £200 million, depending on the extent to which wives' pensions were regarded as earned income.
Of the other main benefits, considerable extra expenditure would arise on sickness and unemployment benefit, but it is not possible to quantify the costs with any precision. These benefits are not taxable and, in general, the beneficiaries would not be entitled to supplementary benefit.