§ Mr. Maddenasked the Secretary of State for Social Services (1) what discussions have taken place between his 52W Department and others regarding his Department funding the payment of private pensions to the staff of doctors; what types and numbers of staff are involved; what estimate of the total exists; and why the deadline for applications was altered from 1st April to 6th March;
(2) how many staff, employed by doctors, will in future have their national insurance contributions paid by his Department; how many staff, employed by doctors, will in future have premiums for private superannuation schemes paid by his Department; what estimates exist as to the cost of each type of payment in each of the next five years; and if he will make a statement;
(3) in what cases has his Department agreed to fund the payment of private pension schemes, either directly or indirectly; at what annual cost to date; and at what estimated cost in each of the next five years;
(4) what private insurance companies offer pension schemes especially for the staff of doctors; what range of annual premium is charged; what range of pension entitlement is paid; what discussions have taken place between his Department and such companies about his Department's supporting the funding of such private schemes in future.
§ Mr. MoyleUntil last year people joining the National Health Service from similar outside employment covered by private pension scheme were in certain circumstances permitted to continue their membership of such scheme, instead of joining the main NHS superannuation scheme. The numbers are at present less than 400 in England and Wales and are diminishing. The only funding for such schemes provided by my Department is the employer's share of contributions payable. Central records are not available of the amount involved.
General practioners' ancillary staff are employed by the doctors themselves and therefore cannot be covered by the NHS superannuation scheme. Family Practitioner Committees, however, directly reimburse doctors, 70 per cent. of the salary of ancillary staff for the work they do for Health Service patients The remaining 30 per cent. of salary and all contributions to National Insurance and other superannuation schemes are reimbursed indirectly via the expenses 53W element in doctors' fees and allowances. Since the inception of the reimbursement scheme the doctors' National Insurance contribution has become an increasing part of the cost of staff, and I therefore agreed with the profession's request to reimburse doctors directly the full cost of their National Insurance contributions.
Some general practitioners provide pensions for their staff through private superannuation schemes. The age and remaining service of some of their staff would not permit them to receive on retiring a pension under the State scheme commensurate with their earnings. It was agreed with the profession that the employers' contribution to such superannuation schemes—already repaid indirectly—should also be directly reimbursed.
Since the proposed change from indirect to direct reimbursement was for schemes in being, there should not have been any more than a marginal net change in cost to my Department.
The direct reimbursement of these practice expenses is due to start on 1st April 1978 and the Department's draft instructions to Family Practitioner Committees (FPCs) provided that superannuation schemes for ancillary staff in being on 1st April should be included in the repayments. However, certain insurance agencies became aware of the proposed change and launched a high pressure campaign to sell doctors new superannuation schemes for ancillary staff. The profession and my officials agreed that there was no intention to include new schemes and the qualifying date for reimbursement was therefore made 6th March, the earliest date by which instructions were expected to arrive at FPC offices. The FPCs were advised to ensure that schemes were reasonable and that the doctor was irrevocably committed to them on 6th March 1978.
There have been no discussions with insurance agencies or companies providing superannuation schemes for doctors' staff and I therefore have no knowledge of the range of premiums.
Some new schemes canvassed by the insurance agencies up to 6th March may be found acceptable under the criteria if so some additional expenditure will 54W result, but I cannot form any estimate at present.
The numbers of ancillary staff, at 1st July 1977, the latest date for which figures are available, in England and Wales are, in whole time equivalents:
Secretary … 1,948 Receptionist … 7,495 Secretary/Receptionist … 5,473 Dispenser … 207 Nurse … 857 Combination of above … 3,292 Total 19,272