HC Deb 02 December 1976 vol 921 c258W
Mr. Cyril Smith

asked the Secretary of State for Social Services what would be the total cost to the National Insurance Fund of abolishing the earnings rule for pensioners.

Mr. Orme

As compared with the Government's proposals for an earnings limit set at £35 a week, but linked to the movement of earnings, the cost to the National Insurance Fund of abolishing the earnings rule is estimated at £210 million in 1977–78. There would, however, be an increase in tax revenue, and some saving in the Exchequer supplement to the fund, together amounting to £60 million, so that the net cost estimate for 1977–78 is one of £150 million.

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