§ Sir B. Rhys Williamsasked the Secretary of State for Social Services if she will publish a list of all national insurance benefits which are liable to be reduced through the operation of the earnings rule; and if she will summarise the circumstances and the amount of earnings, including the earnings of members of the beneficiary's family, which cause the rule to be applied in each case.
§ Mr. O'MalleyThe rule is applied as follows:
(a) Retirement pension
The rule applies only to pensioners between the ages of 65 and 70 (60 and 65 for women). The rule begins to apply when a pensioner's earnings, after deduction of certain expenses in connection with his employment, exceed £9.50 a week. Five pence is deducted from the pension, including any increase of pension for dependants, for each 10p of earnings between £9.50 and £13.50 and 5p for each 5p of earnings in excess of £13.50 Under the provisions of the National Insurance Bill the limits of £9.50 and £13.50 are to be raised to £13.00 and £17.00 respectively.
(b) Increase of retirement pension, invalidity pension or unemployability supplement for a wife or female person looking after a child, if residing with the beneficiary
These increases, but not the main benefit, may be affected by the dependant's earnings. The rule for dependant's earnings is as set out in (a) above save that the upper limit of the proportionate band is at present £11.50, instead of £13.50. Under the provisions of the National Insurance Bill this band will be extended to £17 and the rule for dependants will be the same as for retirement pensioners.
In certain other cases, an increase of benefit is not payable for an adult female dependant whose earnings exceed the standard amount of the increase and who, therefore, is not regarded as being dependent on the beneficiary for national insurance purposes.