HC Deb 04 February 1991 vol 185 cc1-3
1. Mr. Waller

To ask the Secretary of State for Social Security how many pensioners are now benefiting from the abolition of the earnings rule.

The Secretary of State for Social Security (Mr. Tony Newton)

About 300,000.

Mr. Waller

Does my right hon. Friend agree that the change in the earnings rule, which was long sought by pensioners and the organisations representing them, has proved extremely popular? Does he accept that many pensioners have talents and skills, built up over many years, that are a great advantage to employers? Is not it regrettable that some employers still tend to refuse to consider applications from people over the age of 40 or 45? In considering further improvements to legislation, will he bear in mind the ability of older people to contribute in many different ways during the latter part of their working lives?

Mr. Newton

Subject to my being able to remember every part of the question, I think that the answer is yes to each proposition. I feel strongly that we tend to talk of people over retirement age as though, in some sense, they are a burden, whereas many are a huge asset to our community. I am glad to say that there are signs that, under the pressure of demographic trends, more employers are beginning to recognise that.

Mr. Winnick

Is the Minister aware that the abolition of the earnings rule is no compensation for married-couple pensioners, who have lost more than £20 a week, or for single pensioners, who have lost £13 a week, as a result of pensions no longer being increased in line with earnings? An answer that I have received from the Government shows that up to 67 per cent. of pensioners have a total annual income of less than £5,000 and that many have much less.

Mr. Newton

The hon. Gentleman, who persistently asks similar questions, equally persistently ignores the fact that as a result of a range of trends, including the growth of occupational pensions and income from savings, pensioners' average net incomes—I emphasise "average"—have risen much faster under this Government and I would acknowledge—I have done so explicitly and implicitly on numerous occasions—that many pensioners have not benefited from those trends. It is right to direct additional resources to them, as we did in October 1989 with a major increase in income support premiums for older and more disabled pensioners. We shall take a further step in that direction in April with the real increase in the basic pensioner premium.

Mrs. Roe

Although the abolition of the earnings rule has been greatly welcomed by pensioners, a number of my middle-aged constituents seek guidance on the Government's view on the equalisation of the state-pension age. Is my right hon. Friend able to comment on this highly complex issue?

Mr. Newton

As my hon. Friend says, this is a complex and wide-ranging issue. I do not think that I can add to what the Government said in response to a House of Lords Select Committee last year.

Mr. Allen

The Secretary of State had better get used to persistent questions on the level of pensions from Labour Members. He realises, as does my hon. Friend the Member for Walsall, North (Mr. Winnick), that single pensioners are now losing £14 a week and married couples £23 a week. Will the right hon. Gentleman explain where the proceeds are—the £23 billion that has accumulated since 1979—of the great pensions robbery?

Mr. Newton

I welcome the hon. Gentleman to his new position. We look forward to his incisive questioning in the forthcoming months. He need look only at the extensive publications of statistics and finance that were issued on Friday, on which the hon. Member for Walsall, North (Mr. Winnick) commented, to know that there has been a large increase in social security benefits, in a variety of directions, including, not least, for long-term sick and disabled people.