§ Mr. Formanaskd the Secretary of State for Social Services how many employees would be involved and what would be the additional cost to public funds of retirement for men at the ages of 60, 61, 62, 63 and 64 years, respectively, in the latest
TABLE 1 Reduction to age 64 63 62 61 60 240,000 490,000 730,000 970,000 1,190,000 It is unlikely, however, that a reduction in men's pension age could be restricted to employees and the costs set out below are based on a reduction in pension age for all male contributors.
The cost of such a reduction would depend on the extent to which men took advantage of it and retired earlier in order to qualify for a retirement pension.
On the assumption that the pattern of retirement amongst men in the five years
TABLE 2 Cost in £ millions Reduction to age 64 63 62 61 60 £500 £1,000 £1,500 £2,000 £2,500 The estimated annual cost of paying basic unemployment benefit to the num-
TABLE 3 Cost in £ millions Number of employees 240,000 490,000 730,000 970,000 1,190,000 Cost of Unemployment benefit £270 £550 £830 £1,100 £1,350 But it is not considered that these sums can be compared with those in Table 2. The maximum period for which a person on the unemployment register may receive unemployment benefit in any one spell of unemployment is one year, and many people on the register are receiving supplementary benefit, either on its own or in addition to unemployment benefit. Moreover, it is considered likely that, if men's pension age were reduced, not all the vacancies created by men retiring earlier would be filled, and, of those that were filled, not all would be by people on the unemployment register.
178Wfull year for which figures are available. and how these sums compare with the cost to public funds of paying basic unemployment benefit to the same number of employees over the same period of time.
§ Mr. Orme,pursuant to his reply [Official Report, 5th December 1977; Vol. 940, c. 516], gave the following information:
If the pension age of men in the State scheme were reduced below 65, the additional number of employees (Class 1 contributors) who would be of pension age is estimated to be as follows:
following the new lower pension ages would be the same as the present pattern amongst men aged 65 to 70, the estimated additional annual cost to public funds in respect of men retiring earlier is given in the following table. This takes account of the additional cost to the National Insurance Fund, the loss of income tax revenue, and the savings in supplementary benefit, at current contribution and benefit rates.
bers of employes in Table 1 is as follows: