§ 1. Mr. BrazierTo ask the Secretary of State for Social Security what is his latest estimate of the public expenditure cost of abolishing the earnings rule.
§ The Parliamentary Under-Secretary of State for Social Security (Mr. Peter Lloyd)The estimated total public expenditure cost of abolishing the earnings rule for pensioners is £205 million in 1980–90, and £375 million in 1990–91.
§ Mr. BrazierIs my hon. Friend aware that this measure will be greatly welcomed by many people of pensionable age, not least in my constituency, who seek to better themselves after the formal retirement age? Does he further agree that the welcome stimulus that it will provide to the economy by releasing many valuable skills back into the economy should, in the long run, make the measure self-financing?
§ Mr. LloydMy hon. Friend is right. There will be greater choice for the elderly, the economy will benefit from the skills and experience supplied by pensioners continuing to work, and there will of course, be additional revenue for the Exchequer.
§ Mrs. RoeIs my hon. Friend able to say how those people affected by the change will be informed of the new arrangements?
§ Mr. LloydYes, we plan to write next month to all those in receipt of a reduced pension and all those who have deferred their pension. There will be others, of course, earning under £75 per week of whom we are not directly aware, but I hope and expect that they will learn of the measure through the extensive publicity and editorial comment.