§ 4. Mr. David EvansTo ask the Secretary of State for Social Security what estimate he has as to the number of pensioners who are benefiting as a result of the abolition of the pensioners' earnings rule.
§ Mr. NewtonWe estimate that when the earnings rule was abolished, up to 400,000 stood to benefit immediately. In addition, all future pensioners will benefit from the freedom to choose to continue in work and receive their state pensions.
§ Mr. EvansI welcome my right hon. Friend's good news, which shows the Conservatives' commitment to pensioners. Notwithstanding what the Opposition say, 629 pensioners incomes have increased by 25 per cent. Now that pensioners have the choice to carry on working, will my right hon. Friend ensure that all pensioners everywhere know of the change so that they can carry on working if they wish?
§ Mr. NewtonWe mounted a substantial exercise last year to tell those whom we thought might be affected. Information about the abolition of the earnings rule is part of the standard pack that we send to new and prospective pensioners.
§ Mr. MaddenMay I ask the Secretary of State a simple question on behalf of a widow pensioner constituent? Could he live on £46.20 per week? That is the amount that she is expected to live on. She asked the Prime Minister the same question on 8 November last year and has not so far received a reply.
§ Mr. NewtonThe hon. Gentleman will realise that I need more details. In particular, I need to know whether the figure that he quotes includes housing benefit, because in many cases, the figures used to describe people's social security incomes totally ignore the help that they get with housing costs.
§ Mr. HindThe abolition of the earnings rule for pensioners will be a relief, but the introduction of the community charge will cause a great deal of hardship to some pensioners, particularly those who receive a small pension. Will my right hon. Friend study the situation in relation to housing benefit and see whether he can assist? In Lancashire we are faced with a 16 per cent. increase in expenditure by the Labour-controlled Lancashire county council, which will mean an extra £300 on the community charge. The Government's calculated level of £264 means that there will be no relief on the extra £300 that many households will have to pay.
§ Mr. NewtonI cannot undertake completely to offset the effects of irresponsible expenditure policies by Labour local authorities. Community charge benefit, which is now replacing rate rebates, is more generous because it has a lower taper rate, and I hope that that will help some of my hon. Friend's constituents.