HC Deb 17 March 1976 vol 907 cc544-5W
Mr. Boscawen

asked the Secretary of State for Social Services what increases in the national insurance contributions, employers' and employees', separately, will be required to allow for increases in all national insurance benefits from the National Insurance Fund, of 22½ per cent. in November 1976, giving the increases resulting from demographic changes separately; what the increase in the cost of the 18 per cent. Exchequer contribution to the National Insurance Fund will be; and what would be the additional cost to the Consolidated Fund of similar increases in non-contributory benefits.

Mr. O'Malley

The contributions needed for any given increase in benefit rates this year will depend in particular on the assumptions about future earnings movements and the appropriate increase in the earnings threshold and ceiling for contribution liability. These and other factors will be considered in the Government's review of contributions for 1977–78 later this year when a report by the Government Actuary will be made available to the House. The cost, on an annual basis of a 22½ per cent. increase in non-contributory benefits, would be about £300 million.

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