§ 18. Mr. Montgomeryasked the Minister of Social Security whether she will consider making a further relaxation in the earnings rule for National Insurance retirement pensions, in view of the changes which have taken place in the level of earnings and prices since the last changes were made.
§ Mr. PentlandNo, Sir. The present rule became effective as recently as June, 1967, and changes since that date in the level of earnings and prices do not warrant further alteration.
§ Mr. MontgomeryIs the Minister aware that when the earnings rule was eased in June, 1967, the new levels used the gross rather than the net earnings? Has the Minister any idea or estimate of the number of people who are worse off, despite the easing of the rule?
§ Mr. PentlandNo, Sir. Not many should be worse off with regard to the change in the earnings rule. This affected a large number of people on a lower level of earnings, who were not previously entitled to be exempt. It is true to say that previously people on a higher taxation level had the taxation as an allowable deduction from their earnings, but not many could be worse off.