HC Deb 27 June 1955 vol 543 cc10-1
14. Mr. Gower

asked the Minister of Pensions and National Insurance on what basis the earnings limit for old-age pensioners was increased from 20s. to 40s. per week; and if he will now take steps to increase the earnings limit to a figure which may be deemed appropriate today.

Mr. Peake

I cannot add to what was said in Parliament at the time as to the basis of the change made by the 1951 Act. As regards the second part of the Question, I would refer my hon. Friend to the reply given to the hon. Member for Edinburgh, West (Sir I. Clark Hutchison) on 20th June.

Mr. Gower

While appreciating that to remove the earnings limit altogether would militate against our efforts to persuade people to work voluntarily beyond retirement, is it not a fact that reasons similar to those which prompted the Administration a few years ago to increase the limit from 20s. to 40s. now appear to call for some modest increase today?

Mr. Dodds

The increase in the cost of living.

Mr. Peake

I am sure we all regret that it is no longer possible to put a Question to the right hon. Lady the Member for Warrington (Dr. Summerskill) about her motives for making this change in 1951, but I must draw my hon. Friend's attention to the findings of the Phillips Committee on this point and say that it is one which obviously will fall to be considered when we come to undertake the non-statutory review of the National Insurance Scheme.

Mr. Hale

Are we to understand from the right hon. Gentleman's constant reference to the events of 1911 and thereabouts that he does not consider it his duty to apply any independent considerations to any of these problems?

Mr. Nabarro

Would my right hon. Friend have regard to current circumstances? Is he aware that in the Midlands area around Birmingham, which is only one of 13 areas in the country, there are 52,000 vacancies for employment at present and that many of these would be filled by old-age pensioners were it not for the operation of this pernicious rule respecting their earnings?

Mr. Peake

I am sure my hon. Friend knows that the purpose of the rule is to encourage people to stay in full-time employment rather than to retire on pension and seek half-time employment. We have the findings of the Phillips Committee, which went very carefully into this matter, but, as I have said, the whole matter will fall to be considered, along with a great many other points of principle, in the non-statutory review of the Scheme.

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