HC Deb 22 January 1975 vol 884 cc394-6W
Mr. George Cunningham

asked the Secretary of State for Social Services what percentage of total disbursements financed by national insurance contributions have been in respect of benefits or parts of benefits to which self-employed contributors are not entitled, expressed as an average over the last five years, 1970 to 1974.

Mr. Alec Jones

The following table gives the cost of benefits over the last five years showing separately the cost of those benefits or parts of benefits not normally payable to the self-employed. The latter are unemployment benefit, earnings-related supplements to sickness benefit and widow's allowance, graduated retirement benefit and industrial injuries benefits. The cost of the latter benefits amounts to a little under 12.5 per cent. of total benefit expenditure over the last five years or 10.6 per cent. over the last financial year.

Year ended 31st March Benefit 1970 1971 1972 1973 1974
(a) £m. (b) Per cent. (a) £m. (b) Per cent. (a) £m. (b) Per cent. (a) £m. (b) Per cent. (a) £m. (b) Per cent.
Unemployment benefit … 127 5.2 150 5.7 239 7.8 209 6.0 174 4.4
Sickness benefit (flat-rate) … 324 13.2 313 11.9 261 8.5 219 6.3 231 5.8
Sickness benefit (earnings related supplement) … 59 2.4 61 2.3 62 2.0 72 2.1 75 1.9
Widows benefit (flat-rate) … 156 6.4 162 6.2 190 6.3 213 6.1 238 6.0
Widows benefit (earnings-related allowance) … 6 0.2 6 0.2 6 0.2 7 0.2 7 0.2
Retirement pension (flat-rate) 1,617 65.9 1,765 67.1 2,028 66.1 2,346 67.7 2,722 68.2
Graduated retirement benefit 10 0.4 13 0.5 17 0.6 23 0.7 30 0.8
Invalidity benefit … … — — — — 91 3.0 196 5.7 242 6.1
Maternity benefit … … 38 1.5 40 1.5 42 1.4 42 1.2 42 1.1
Lump-sum payments … — — — — — — — — 77 1.9
Other National Insurance benefits … … … 13 0.5 12 0.5 14 0.5 14 0.4 14 0.4
Industrial injuries benefit … 105 4.3 109 4.1 115 3.7 125 3.6 138 3.5
Total amount of benefit not normally paid to the self-employed … … … 307 12.5 339 12.9 439 14.3 436 12.6 424 10.6
(a) Actual cost of benefit.
(b) Cost of benefit as a percentage of total benefit expenditure.