HC Deb 12 December 1975 vol 902 cc409-10W
Mr. Carter-Jones

asked the Secretary of State for Social Services what would be the net cost, when both savings in supplementary pension and increased tax revenue have been taken into account, of paying a full retirement pension to all those who do not at present qualify owing to insufficient national insurance contributions.

Mr. O'Malley

Roughly £800–£850 million a year.

Mr. Carter-Jones

asked the Secretary of State for Social Services whether persons receiving non-contributory invalidity pension will be given national insurance credits in order to entitle them to a full rate retirement pension on reaching retirement age; and if she will make a statement.

Mr. Alfred Morris

People receiving non-contributory invalidity pension are credited with national insurance contributions on the same basis as people receiving the contributory invalidity pension, and these credits count towards the satisfaction of the second contribution condition for retirement pension. It is, of course, necessary for a person to have actually paid a minimum number of contributions in order to qualify for a retirement pension.

Mr. Carter-Jones

asked the Secretary of State for Social Services how many retirement pensioners are receiving less than the standard retirement pension owing to an insufficient record of contributions; what are the major categories into which they fall; and what is the percentage in each category.

Mr. O'Malley

An estimated 440,000 retirement pensioners, about 5.5 per cent. of the total, are receiving reduced-rate pensions because of a deficient contribution record. The major categories into which these pensioners fall and the percentage of each category receiving reduced-rate pensions is as follows:

per cent.
Men 4
Women receiving pensions on their own contributions 12.1
Wives receiving pensions on their husband's contributions 2.8
Widows receiving pensions on their husband's contributions 2.4
There are a number of reasons why people have reduced rate pensions, but I am afraid that no statistical breakdown is possible.