§ 12. Mr. Ridsdaleasked the Minister of Social Security why the earnings-related supplement to flat-rate unemployment benefit does not apply to those who return from working for a period abroad, even though they maintained their voluntary contributions to the National Health and Pension Scheme.
§ Mr. PentlandEntitlement to earnings-related supplement is not secured by the payment of flat-rate contributions but by the amount of an employee's reckonable earnings in the relevant Income Tax year. Earnings, including those of employees returning from work abroad, count for this purpose, and for liability to pay the graduated contributions needed to finance the supplement, only if they are earnings from which tax is deductible through P.A.Y.E.
§ Mr. RidsdaleBut as the hon. Gentleman has already admitted that this is possibly unfair and an interim measure, would he please do something for these people before the Social Security Review reports?
§ Mr. PentlandAs both my right hon. Friend and I have often said, we recognise that there are certain imperfections 23 in the earnings-related supplements scheme, as it is an interim scheme, and all relevant factors will be taken into consideration in the Review.