HC Deb 06 February 1967 vol 740 cc1092-5
17. Mr. Will Griffiths

asked the Minister of Social Security what action she proposes to take on the latest report of the National Insurance Advisory Committee recommending further relaxation of the earnings rule so far as it applies to people in receipt of retirement pensions.

18. Mr. Woof

asked the Minister of Social Security if she will make a statement about the recommendations made by the National Insurance Advisory Committee in its report on the question of the earnings limit for retirement pensions.

22. Mr. Turton

asked the Minister of Social Security whether she proposes to increase the earnings limit for retirement pensioners.

23. Mr. Frank Allaun

asked the Minister of Social Security when she expects to introduce the recommendations concerning the earnings rule made by the National Insurance Advisory Committee; and what would be the approximate annual cost.

25. Mr. Hooley

asked the Minister of Social Security whether she intends to revise the earnings rule in the light of the report of the National Insurance Advisory Committee; and if she will make a statement.

28. Mr. Blaker

asked the Minister of Social Security what action she proposes to take on the recommendations of the National Insurance Advisory Committee for the alleviation of the earnings rule.

29. Miss Pike

asked the Minister of Social Security what immediate action she intends to take to implement the recommendations of the National Insurance Advisory Committee regarding the earnings rule.

29. Miss Herbison

I am glad to have this opportunity of welcoming the Committee's Report. The Government propose to give effect to its recommendations in full. But this will take time, since amending regulations will need to be considered by the Committee and then approved by Parliament. The estimated cost would be of the order of £350,000 to £500.000 in a full year.

Mr. Will Griffiths

Is my right hon. Friend aware that the whole House will welcome the Government's acceptance of this Report? Can she give the House any idea how long it will be, after the procedure that she has outlined has been followed, before the earnings rule is amended?

Miss Herbison

First, we require Regulations. These draft Regulations must be sent to the National Insurance Advisory Committee. This Committee holds them for 28 days, for any representations to be made. Then the Regulations have to come before this House and another place for affirmative Resolution. We hope to get them through as quickly as possible.

Mr. Woof

Is my right hon. Friend aware that her statement will be welcomed by all pensioners doing part-time work? When does she propose to implement the recommendations?

Miss Herbison

I have explained that it will be some time before they can be implemented, but I can assure my hon. Friend that there will be no delay once we have gone through the arrangements that must be made.

Mr. Turton

I congratulate the right hon. Lady on the decision, but cannot she take steps to cut down the amount of administrative time taken over this matter, bearing in mind that both the cost of living and the annual average level of earnings have risen considerably since October, 1963, which month was the basis on which the present earnings limit was made to operate? Surely she could cut down some of this administrative procedure?

Miss Herbison

There is no doubt that the Government's measures have helped to steady the cost of living. It is important—because this is a matter of great interest outside the House—that representations should be made and that the normal time should be allowed for them to be made. I assure the right hon. Gentleman that we intend to get them through as quickly as possible.

Mr. Frank Allaun

Is my right hon. Friend aware that she is rapidly becoming my favourite Minister—my "pin-up girl"? Does she agree that the resultant increase in production could well outweigh the cost? Has she made any estimate of the increased production which is likely to result from people staying on at work?

Miss Herbison

It is very difficult to make any estimate of that, because one just does not know what effect raising the earnings limit will have. So many things must be taken into account.

Mr. Hooley

Will my right hon. Friend make appropriate representations to her right hon. Friend the Chancellor of the Exchequer so that any discouragement, through S.E.T., to the employment of these retired people can be removed?

Miss Herbison

That is an entirely different matter. The Chancellor has already said that these matters are being examined.

Mr. Blaker

Is the right hon. Lady aware that in many parts of the country retirement pensioners can obtain only seasonal employment, and that the earnings rule, as operated at present, often bears hardly on them? Is she aware that the people concerned will be disappointed that this committee, in its present Report, has not been able to recommend any solution to their problem? Will the right hon. Lady give an assurance that the question will be borne in mind in the general review of the social security system which is now under way?

Miss Herbison

The hon. Gentleman will be aware that the National Insurance Advisory Committee—a completely independent committee—gave a great deal of thought to the question of seasonable work. Its recommendation is contained in the Report.

Miss Pike

Does the right hon. Lady recognise that hon. and right hon. Members on this side of the House will do everything they can to facilitate the speed with which she brings this in, especially as we have been pressing for this increase since 1964?

Miss Herbison

I am delighted at the assurance which the hon. Lady has given. I welcome it very much. It is interesting that she mentioned 1964. Her own Government were in power then.

Mr. Ridsdale

We welcome this relief in respect of the earnings rule, but does the Minister realise that in seasonal areas it is important to do something about part-time workers? Is she aware that what operates most against them is S.E.T? Will she do something about this to help old-age pensioners?

Miss Herbison

I have nothing to add to what I have already said.

Miss Pike

May I remind the right hon. Lady that we raised this matter in 1963. We put it in our election manifesto in 1964, and we have been pressing—[Interruption.] May I also remind the Minister that we regard this as a very important continuing process, which should have been looked at much sooner?

Miss Herbison

Both political parties put many things into their election programmes. I am delighted and proud to be able to stand at this Box and make this statement. If I were in order in doing so I should like to deal with all the things in social security that we have honoured since 1964.