§ Mrs. Doris Fisher
asked the Secretary of State for Social Services (1) what would be the estimated cost to the Exchequer of pensions on the basis that the retiring age of men was reduced to 64 years;
(2) what would be the estimated increase in contributions needed to pay pensions to men at 64 years.
§ Mr. Dean
On the assumption that men retired a year earlier than at present, the cost to the National Insurance Fund in extra expenditure and loss of contributions would be about £140 million a year. If the cost were met by higher graduated contributions on earnings between £9 and £48 a week, with the Exchequer also providing 18 per cent. of the amount so contributed, the contributions of employees and employers would each have to be increased by about 0.3 per cent. of earnings. For employees earning £48 or more a week, both employee and employer would have to pay 12p extra per week. The cost to the Exchequer, including supplementary benefit, would be about £25 million.