§ Mr. ClaphamTo ask the Secretary of State for Social Security if claimants over retirement age but not yet 70 years of age and not in full-time employment who are in receipt of invalidity benefit as well as reduce earnings allowance will be transferred to retirement allowance. [25856]
§ Mr. Roger EvansYes. The Social Security (Industrial Injuries) (Regular Employment) Regulations 1990, as amended by the Social Security (Industrial Injuries and Diseases) (Miscellaneous Amendments) Regulations 1996 with affect from 24 March 1996, provide for reduced earnings allowance recipients who are over pension age and in receipt of incapacity benefit, which replaced invalidity benefit, to be transferred to retirement allowance.
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§ Mr. ClaphamTo ask the Secretary of State for Social Security how many claimants over retirement age and not in full-time employment who receive reduced earnings allowance will be transferred to retirement allowance from April; and what will be the estimated average change in weekly income resulting from the change over. [25855]
§ Mr. EvansThe information requested is not available in the format requested. Such information as is available is as follows.
The Benefits Agency has identified about 20,000 reduced earnings allowance recipients over pension age, who are not being paid at a frozen or restricted rate. Of these, any not in regular employment will be transferred to retirement allowance under the amended legislation which came into force on 24 March. The average difference between reduced earnings allowance and retirement allowance is estimated to be around £29 a week. This may be offset by additional income related benefit entitlement for some retirement allowance recipients.
§ Mr. ClaphamTo ask the Secretary of State for Social Security if a claimant who is transferred from reduced earnings allowance to retirement allowance and is disadvantaged through his lost occupational pension entitlement will be compensated by extra retirement allowance. [25857]
§ Mr. EvansRetirement allowance is paid in recognition that a reduction in earnings, due to an industrial accident or disease, during a person's working life could result in reduced pension entitlement. The rate payable can be no more than 25 per cent. of the rate of reduced earnings allowance.