§ 128. Sir J. Mellor
asked the Minister of National Insurance whether, in view of the appeal in Cmd. 7046 to employed persons to remain in industry after pensionable age, he will take steps to amend Clause 20 of the National Insurance Act, 1946, so as to increase the inducement to postpone retirement and provide that pension shall be paid without regard to earnings.
§ Mr. Steele
I would refer the hon. Member to the reply given on this subject to the hon. Member for Holland with Boston (Mr. Butcher) on 28th January. I would add that the retirement pension provisions of the National Insurance Act were, as is indicated in paragraph 124 of the Economic Survey, expressly framed so as to provide special inducement to old people304W to remain at work in the form of increased pensions for deferred retirement. I have no reason to suppose that they will not prove satisfactory for the purpose. It is not practicable, however, to bring these provisions fully into force during the present transitional period. In order to preserve the incentive to postpone retirement during this period unconditional pensions at the old rates are, therefore, still being awarded at pension age to those who postpone retirement beyond that age, and these pensions are raised to the full new rate, without any retirement or earnings condition, five years later.