§ Mr. Hordernasked the Secretary of State for Social Services what would be 271W the cost to the revenue if pensions, unemployment benefit and social security payments were increased sufficiently to compensate for inflation since 5th April 1975, assuming that the employers' and employees' contribution remain at the same proportion.
§ Mr. O'MalleyBetween April 1975 and January 1976, the latest month for which the retail price index is available, retirement pensions and other long-term benefits maintained their value in relation to the movement of that index. The single person's rate of unemployment and sickness benefit would, however, need to be increased from £11.10 to £11.20 and the dependency increase for a wife from £6.90 to £7. The cost of these and conseqential
TABLE 46.02 PERCENTAGE INCREASES IN THE SUPPLEMENTARY BENEFIT SCALE RATE AND PERCENTAGE INCREASES IN RETAIL PRICES, EXCLUDING HOUSING COSTS, AND IN AVERAGE EARNING OF MALE MANUAL WORKERS Supplementary benefit scale rate—single householder* Retail Prices, excluding housing costs† Average gross weekly earnings of male manual workerst‡ Percentage increase Percentage increase (decrease where indicated) Percentage increase Date Over previous rate Since July 1948 Since previous date Since July 1948 Since previous date Since July 1948 November 1975 … 13.5 808.3 12.4 353.4 12.1 789.5 * Basic scale rate not including any of the various additions which may be payable. † The percentages shown are estimates made by the Department of Health and Social Security based on the current General Index of Retail Prices (excluding housing costs) and previous indexes, as published by the Department of Employment. ‡ The percentages shown are estimates made by the Department of Health and Social Security based on the average gross weekly earnings of full-time adult male manual workers in manufacturing industries and some of the principal non-manufacturing industries, as published by the Department of Employment. 272W
TABLE 46.05 AVERAGE EARNINGS OF MALE MANUAL WORKERS AND INCOME WHEN EMPLOYED COMPARED WITH BENEFIT INCOME WHEN SICK OR UNEMPLOYED Date Average weekly earnings* Net income after deducting tax and National Insurance contributions Standard rate of sickness or unemployment benefit plus Earnings Related Supplement† Benefit in Column (4) as percentage of gross income in Column (2) Benefit in Column (4) as percentage of net income in Column (3) (1) (2) (3) (4) (5) (6) £ £ £ Per cent. Per cent. Single man 1975 April … … 54.05 36.70 18.35 34.0 50.0 November … … 60.58 40.58 19.65 32.4 48.4 Married couple with no children 1975 April … … 54.05 38.58 24.45 45.2 63.4 November … … 60.58 42.46 26.65 43.8 62.5 —plus family allowance Married couple with two children 1975 April … … 55.55 42.44 30.65 55.2 72.2 November … … 62.08 46.32 33.55 54.0 72.4 increases in short-term benefits payable from the National Insurance Fund would be about £11 million a year, with a further £6 million for corresponding increases in supplementary benefit rates.