§ Mr. Ralph Howellasked the Secretary of State for Employment if he will publish details showing how earnings-related supplement is calculated.
§ Mr. OrmeI have been asked to reply.
Earnings-related supplement to sickness and unemployment benefit and maternity allowance is calculated on the basis that it is one-third of the claimant's reckonable average weekly earnings in the relevant contribution year between the floor at any one time for contribution liability under the national insurance scheme and £30; and then 15 per cent. of the reckonable weekly earnings between £30 and the ceiling for contribution liability. "Reckonable" earnings are currently those from which income tax under Schedule E has been deducted under the PAYE system; and the "relevant tax year" is the last complete income tax year before the calendar year in which the claimant's period of interruption of employment began. Thus, for a period of interruption of employment beginning in 1976 the relevant tax year would be April 1974 to April 1975, with the floor and ceiling for contribution 250W liability purposes in that year being £10 and £54 respectively. Earnings-related supplement is reduced or extinguished when it would, together with flat-rate benefit, exceed 85 per cent. of the claimant's average weekly earnings in the relevant contribution year; but flat-rate benefit is not itself affected by the 85 per cent. limit.