§ Sir W. Robson Brownasked the Minister of Pensions and National Insurance whether he will withdraw the earnings rules as at present applied in order that all National Insurance pensioners, irrespective of age, may use their productive capacity for the benefit of the nation.
§ Mr. N. MacphersonNo. To abolish the earnings rule would entail a radical revision of the entire concept and form of the National Insurance scheme. Nor can it be assumed that to pay pensions unconditionally at the present minimum pension ages would necessarily result in increasing the amount of remunerated work done by people over those ages.
§ Sir W. Robson Brownasked the Minister of Pensions and National Insurance how the estimated cost of
74Wincreases in monetary and in real terms over the allocations of the previous financial year.
§ Mr. PowellI do not propose to disclose the draft estimates of individual Boards. Total draft estimates exceeded allocations by about 1 per cent. The other information requested is as follows:
£100 million per annum of withdrawing the earnings rules was calculated; and if it was based on an assumption that most National Insurance pensioners would immediately resume employment.
§ Mr. N. MacphersonThe immediate annual cost to the National Insurance Fund of withdrawing the earnings rule and the retirement condition was estimated thus:
75W
£ Millions Cost of pensions for persons now deferring retirement 83 Loss of contributions from insured persons 8 Consequent loss of Exchequer supplement 2 Abolition of reductions under the earnings rule for retirement pensioners and widow beneficiaries 13 106 Savings on sickness and unemployment benefits 6 100 As regards the last part of the Question the above calculation does not depend on any assumption about resumption of employment by present pensioners.