§ 5. Mr. Bessellasked the Minister of Pensions and National Insurance whether, In view of the increases given to retirement pensioners by Her Majesty's Government, she will now abolish the earnings rule in respect of these pensioners.
§ Mr. PentlandI would refer the hon. Member to the reply which my right hon. Friend gave to my hon. Friend the Member for Bury and Radcliffe (Mr. Ensor) on 22nd March.
§ Mr. BessellWhilst recognising the problems which the hon. Gentleman and his right hon. Friend have in the present economic conditions, may I ask him to recognise that there is serious concern about this matter throughout the country, particularly as it penalises many old people from carrying out work which they could usefully undertake in the interests of the country as a whole? In view of this, will the hon. Gentleman reconsider the matter?
§ Mr. PentlandMy right hon. Friend and I are aware of what the hon. Member has said. The Government have made it clear on more than one occasion that the earnings rule, which at present begins to operate at the level of £5, will be kept under constant review.
§ Mr. DeanWill the hon. Gentleman look at this matter again? Would he agree that, if we are to encourage people to continue at work, it is extremely important that we should find a way round this difficulty? Will he say whether it is possible to find a way of getting rid of this rule without incurring the substantial extra cost which would be 10 involved if it were done away with outright?
§ Mr. PentlandI am glad that the hon. Member has referred to the substantial cost, because there are already 400,000 people who have passed minimum pensionable age but who have not yet retired. To eliminate the earnings rule completely would mean an immediate additional expenditure of £120 million a year. Therefore, as I have said, the Government are keeping constantly under review the limit—at present £5—at which the earnings rule begins to apply.