§ Mr. Haleasked the Minister of Pensions and National Insurance if he will state, for the period of 12 months to the most recent convenient date, the number of old-age pensioners in actual receipt of retirement pensions which are subject to a deduction due to receipt of earnings in excess of the permitted maximum; and what is the gross amount of such deductions.
§ Miss PittThe latest date for which figures are available is December, 1956. It was then estimated that, of just over one million retirement pensioners in the age groups to which the earnings limits apply, about 18,000 were suffering reduction of their pensions on account of earnings and 19,000 had their pensions extinguished. The total amount of these deductions was about £3 million a year which at the higher rates of benefit now in force would correspond to nearly £4 million.
It is now known, however, that the pensions of at least 60,000 late age entrants, who are not subject to the retirement condition, are being extinguished because of regular high earnings and this will probably bring the total amount of deductions up to or near £12 million a year at the present time but this increase is temporary and will decline steadily over the next five years.
§ Mr. Haleasked the Minister of Pensions and National Insurance in how many cases in the last 12 months he has been officially notified that old-age pensioners have committed suicide shortly after being interviewed by his officers with reference to alleged breaches of the earnings rule.
§ Miss PittTwo. In one of them the pensioner concerned had already been informed that no proceedings would be brought against him.
§ Mr. Haleasked the Minister of Pensions and National Insurance if he will state in detail the basis of his estimate that the revision of the rule limiting the earnings of old-age pensioners would involve an additional cost to the contributor or the tax-payer of £100 million a year.
§ Miss PittAbout £100 million a year is the approximate cost of abolishing the234W earnings rule for retirement pensioners and the retirement condition which goes with it. The figure is made up as follows:
£ million Extra cost of paying retirement pensions to persons over minimum pension age but not retired from work, including any increments of pension already earned 85 Cost of paying full retirement pensions to persons whose pensions are at present reduced under the earnings rule 12 Saving on sickness and unemployment benefits -6 Loss of contribution income 10 101 If the earnings rule for widows under 60 were also abolished, this would cost a further £5½ million a year, bringing the total cost to nearly £107 million.
§ Mr. Haleasked the Minister of Pensions and National Insurance whether he will now give instructions to his investigating officers that a formal caution should only be given to old-age pensioners suspected of a breach of the earnings rule when the investigating officer has provisionally decided that the case may result in a prosecution.
§ Miss PittNo. As my Department's investigating officers do not make the decision as to whether a prosecution should take place, the hon. Member's suggestion is not practicable. In any event I can see serious objections to statements being taken without a caution from people who appear to have committed an offence.