Letters
Below the Bread Line Douglas Houghton, MP The Situation in Singapore George Edinger Federal Pay-off W. S. Kerr Orchestral Sizes John Burgh Wheels Within Wheels Peter Francis Golf Records John Irwin
BELOW THE BREAD LINE
Sus,—1 have explained to Mr O'Hanlon in lengthy correspondence in the past the difficulties of bring- ing into a contributory scheme in 1948 persons who (i) were not, and in many cases never had been, contributors to the previous National Insurance Scheme, and (ii) were then over pension age and therefore would have been entitled to pension im- mediately. To give full retirement pension at once to non-contributors and without means tests would have been a fundamental departure from the prin- ciples of a contributory scheme and would have created many anomalies among contributors.
The Labour Government did not feel that it would be satisfactory to offer these people the option of contributing for ten years (like other late entrants under pension age) in view of their age, or of paying ten years' contributions in a lump sum (for that would have been another form of means test).
Instead the 1948 Government liberalised the conditions for granting the over-seventy (non- contributory) pension. This did bring a pension to many who were ineligible for National Assistance on account of the size of their capital resources.
The next Labour Government will take the fur- ther step of granting supplements to incomes below a reasonable minimum to all non-pensioners and pensioners alike over retirement age, and to widow pensioners. This will be granted automatic- ally on the basis of income only (ignoring capital resources as such). The scheme will be set in motion by the making of a simple return of income to the tax people who will determine the `coding to receive' ('receive-as-you-need;' or income tax in reverse).
This step will remove, I hope, the sense of neglect and grievance of many of those for whom Mr. O'Hanlon speaks.
DOUGLAS HOUGIIION
House of C0111111011S, SW .1
Previous page
