HC Deb 10 November 1980 vol 992 cc78-9W
Miss Richardson

asked the Secretary of State for Social Services how much money is being saved by abolishing the earnings-related supplement on maternity allowance; and if he will give figures for 1981, when the supplement is to be reduced, and for 1982, when it is to be abolished.

Mrs. Chalker

The saving in the financial year 1981–82, which includes some effect from the abolition in January 1982, is estimated to be about £9 million; in 1982–83 the total saving will be about £38 million.

Miss Richardson

asked the Secretary of State for Social Services how much money is being saved in the current year through the maternity allowance having been increased by 5 per cent. less than the rate of inflation; and what the equivalent figure for savings would be if it is reduced by a further 5 per cent. in 1981.

Mrs. Chalker

About £2 million will be saved in the financial year 1981–81 by uprating maternity allowance from 24 November 1980 by 5 per cent. less than the rate of inflation; the saving in a full year is about £6 million.

The equivalent saving in 1981 for a further 5 per cent. reduction in November would be about £2 million; £7 million in a full year.