HC Deb 02 June 1997 vol 295 cc17-8
19. Mr. Rowlands

To ask the Secretary of State for Social Security if she will review the current regulations on the reduced earnings allowance; and if she will make a statement. [895]

Mr. Denham

We are reviewing the current position on the reduced earnings allowance. Those who lost out from the ending of the reduced earnings allowance after their retirement are among many who suffered injustice under the previous Government. The House will recognise the difficulty in restoring the position of everyone who suffered under that Government.

Mr. Rowlands

Is my hon. Friend aware that very many people who received reduced earnings allowances assumed that they would do so for life? The retrospective change was made recently by Tory Ministers. Is he also aware of the confusion that has arisen due to hundreds of appeals and different decisions being made on them? Will he therefore pay urgent attention to the situation to remove the worst hardships that many of our constituents are suffering?

Mr. Denham

I pay tribute to the work of my hon. Friend on this matter, which I know is of great importance in his constituency. I believe that it is true that a number of those who lost income of about £30 a week had previously been informed that they would receive benefit either for life or for a substantial period after their retirement. That is part of the injustice such people suffered. A number of appeals and Social Security Commissioner decisions are certainly in the pipeline. As I said, we are urgently reviewing the allowance.