§ Mrs. Angela KnightTo ask the Secretary of State for Social Security if he has plans to change the way contributions to personal pension schemes are taken into account in income-related benefits; and if he will make a statement.
§ Mr. BurtMy right hon. Friend the Secretary of State plans to lay before Parliament amendments to the regulations on the treatment of such contributions in the income-related benefits. It has been the intention since 1988 that when assessing earnings for the income-related benefits a deduction should be made of half of any contributions to a private pension scheme, and administrative practice has been in line with this. But the current regulations do not correctly reflect this policy. In consequence awards have been made since July 1988 which are incorrect in law at a total cost of £8 million. Amendments to the income-related benefits regulations will be introduced to bring the legislation fully into line with existing policy and administrative practice.