HC Deb 04 December 1967 vol 755 cc937-8
29. Mr. Sharples

asked the Minister of Social Security how many retirement pensioners have had their pensions reduced as a result of the withdrawal of the pay-as-you-earn tax concession in June, 1967.

46. Mr. Dean

asked the Minister of Social Security whether she will undertake to find out how many pensioners are worse off following the recent change in the operation of the earnings rule as a result of which the rule operates on gross earnings instead of net earnings.

Mr. Pentland

The number of pensioners affected in this way is not known, but the other changes made at the same time ensure that it is small. An expensive inquiry to determine the exact number would not be justified.

Mr. Sharples

Has the Minister seen the details of a case, which I have sent to the Ministry, of one of my constituents whose total earnings were £11 10s. and who had his pension reduced by £2 a week as a result of this change? Would it not be a good thing for the Department to find out the effects of the change?

Mr. Pentland

This matter was fully debated when we introduced the new Regulations in regard to the earnings rule. As the hon. Gentleman knows full well, the National Insurance Advisory Committee recommended the changes which we made, recognising at that time that some pensioners were enjoying what was, in effect, a higher earnings rule than other pensioners with low incomes.

Mr. Lipton

Does my hon. Friend accept that there are a number of pensioners—however small that number may be—who have been adversely affected by the operation of this new rule? Will he take these individual cases into account if and when hon. Members submit specific cases to him?

Mr. Pentland

Yes, Sir. We of course look at every individual case that is presented to us, but my hon. Friend must bear in mind that the new rule was applied to even things up. There are now hundreds of thousands of pensioners benefiting as the result of the action which we took. What was an anomalous position has now been corrected.

Mr. Sharples

On a point of order. In view of the unsatisfactory nature of the Parliamentary Secretary's reply, I beg to give notice that I shall raise this matter on the Adjournment.