HC Deb 16 November 1978 vol 958 c351W
Mr. Carter-Jones

asked the Secretary of State for Social Services what proportion the administrative costs of paying pensioners a Christmas bonus was of the total amount paid out in each year in which the payment has been made; what is his estimate of the proportion in 1978; by what percentage increase he estimates the administrative costs in 1978 will exceed those in 1977; and if he will make a statement.

Mr. Orme

The information requested is as follows for Great Britain:

(1) (2) (3) (4)
Bonus Benefit expenditure £million Administrative costs £million Col. (3) as a percentage of Col. (2)
1972 78.7 1.0 1.2
1973 79.8 0.9 1.1
1974 91.9 1.0 1.1
1977 99.0 2.6 2.6
1978 101.0 2.9 2.9

The administration costs increased markedly between 1974 and 1977, mainly because the Post Office encashment charges, postal charges and staff salaries increased over that period.

The administration cost increase of nearly 12 per cent. between 1977 and 1978 is due mainly to an increase in Post Office encashment costs arising from their need to meet higher cash handling charges by the banks.