asked the Secretary of State for Social Services what addition to the Class I contribution of 16·5 per cent. in the Social Security Pensions Bill would be required if the contracted out contribution reduction was 8 per cent. instead of 7 per cent. of relevant earnings.

On the assumption of 8 million persons contracted out, and that these numbers were not affected by the improvement in the terms for contracting out, it would be necessary to increase the joint rate of contribution in respect of employed earners in the first year by 0·4 per cent. of relevant earnings in order that the fund's income from contributions and Treasury Supplement should be the same.