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Retirement Pension

Volume 886: debated on Friday 14 February 1975

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asked the Secretary of State for Social Services what are the estimated proportions of a retirement pension begun in 1975 for a married man aged 65 years which have been provided by (a) his own contributions, (b) compound interest thereon, (c) his employer's contributions, (d) compound interest thereon, and (e) the Exchequer.

The National Insurance Fund, from which retirement pensions are paid, is financed on pay-as-you-go principles under which the cost of pensions now in payment is met mainly from current contribution income and not from the product of contributions paid in the past.On the contribution rates applying from next April, about 34 per cent. of the fund's income comes from the contributions of insured persons, about 49 per cent. comes from the contributions of employers, and about 15 per cent. comes from the Exchequer through the Treasury Supplement. The remaining 2 per cent. is the interest on the balances in the fund.I would also refer my hon. Friend to my reply to my hon. Friend the Member for Manchester, Gorton (Mr. Marks) on 4th February.—[Vol. 885, c.


(a) Minimum weekly rates operative on 31st October 1972:
(i) Clerical Officer (age 21)(ii) Nursing Auxiliary (age 21)(iii) Ancillary Grade A (age 20)
Basic rate£16·21£15·57£17·48
London weighting£2·40£2·40£2·40

(b) Increases since that date (new rates), exclusive of London weighting:

Date of increase

(i) Clerical officer (age 21)(ii) Nursing Auxiliary (age 21)(iii) Ancillary grade A (age 20)
14th March 1973£2·00 (£19·48)
1st April 1973£1·67(£17·88)£1 ·97 (£17·54)
7th November 1973£3·00 (£20·88)£0·40 (£19·88)
13th December 1973 (1)£2·40 (£22·28)
1st April 1974£2·25 (£23·13)£2·71 (£20·25)
23rd May 1974 (2)£2·83 (£23·08)
24th May 1974 (3)£1·20 (£24·33)£1·20 (£24·28)£1·20 (£23·48)
21st June 1974 (3)£0·80 (£25 ·13)£0·80 (£25·08)£0·80 (£24·28)
19th July 1974(3)£0·40 (£25·53)£0·40 (£25·48)£0·40 (£24·68)
16th August 1974 (3)£0·40 (£25·93)£0·40 (£25·88)£0·40 (£25·08)
18th October 1974£0·40 (£26·33)£0·40 (£26·28)£0·40 (£25·48)
15th November 1974(3)£1 ·20 (£27·53)£1·20 (£27·48)£1·20 (£26·68)
13th December 1974(4)£3·32 (£30·00)


(1) Adult rate for ancillary grade A at age 19.
(2) Halsbury; adult rate for nursing auxiliary at age 19.
(3) Threshold awards payable from first full weekly or monthly pay periods after these dates in addition to basic pay, i.e. not consolidated into basic rates.
(4) Adult rate for ancillary grade A at age 18 including previous threshold awards consolidated into basic rates.

(c) London weighting increases (new rates) effective from 1st April 1974:
(i) Clerical officer (age 21)(ii) Nursing auxiliary (age 21)(iii) Ancillary grade A (age 20)
Inner Zone£3·60 (£6·00)£3·60 (£6·00)£3·60 (£6·00)
Outer Zone (fringe)£0·32 (£2·72)£0·32 (£2·72)£0·32 (£2·72)