HC Deb 12 November 1974 vol 881 cc54-5W
30. Mr. Rifkind

asked the Secretary of State for Social Services whether she will seek to ensure that self-employed as well as employed persons will receive earnings-related benefits under the Government's State pension proposals.

Mr. O'Malley

Successive Governments have indicated that in principle they are in favour of earnings-related benefits for the self-employed but practical difficulties have ruled this out. These difficulties were explained in "National Superannuation and Social Insurance" (Cmnd 3883) and in the Conservative Government's White Paper "Strategy for Pensions" (Cmnd 4755). From April 1975 the total contributions of the self-employed on £1,600 a year or more will represent about 8 per cent. of their profits or gains up to £3,600 a year for the same flat-rate benefits for which employers and employees will be paying about 12½ per cent. of earnings up to the same limit.