§ 39. Mr. Roseasked the Minister of Pension; and National Insurance how much it would cost to abolish the earnings rule in the case of retirement pensions; and how much it would cost to raise the allowed income level by £1, £2 and £3, respectively.
§ Mr. PentlandAbolishing the earnings rule and consequently the retirement condition would cost about £110 million in the first year. The annual cost of relaxing the earnings rule by the amounts specified would be about £400,000. £750,000 and £1 million respectively, if one could assume that the change would not increase the number of retirements.
§ Mr. Roseasked the Minister of Pensions and National Insurance whether, in her review of pensions, she will give priority to modifying the present earnings rule for retirement pensioners.
§ Miss HerbisonI cannot promise any special priority, but I have made it clear that we will continue to keep the level at which the earnings rule begins to operate under examination.