§ Mrs. Chalkerasked the Secretary of State for Social Services on what basis he estimates that moving from the £50 earnings rule limit to complete abolition would cost about £12.5 million per annum in respect of wives of invalidity pensioners, when it has been admitted that the number of wives in respect of whom the adult dependency increase is prevented or extinguished is unknown to the Government.
§ Mr. OrmeThe cost of abolishing the earnings rule for wives of invalidity pensioners in 1977–78, as compared with moving to a £50 earnings limit, is taken as the cost of paying an allowance to all married pensioners whose wives reside with them—estimated at 70 per cent. of all male pensioners—minus the present cost of wives' allowances as adjusted to take account of a £50 earnings limit. This350W difference is estimated at £12.5 million a year.
§ Mrs. Chalkerasked the Secretary of State for Social Services why moving from the £50 earnings rule limit to complete abolition of the rule would cost about £12.5 million per annum in respect of wives of retirement pensioners when only 650 such wives are currently adversely affected by the earnings rule.
§ Mr. OrmeThe cost of abolishing the earnings rule for wives of retirement pensioners in 1977–78, as compared with that of moving to a £50 earnings limit, is taken as the cost of paying an allowance for their wives to all married pensioners whose wives are under age 60, less the cost of paying allowances when a £50 earnings limit is in operation. This extra cost is roughly £12.5 million. In 1976 about 650 retirement pensioners were having the allowance for their wives adjusted or extinguished because of the operation of the earnings rule, but earnings distribution data indicate that a majority of pensioners who might qualify for a reduced addition to their pension have not made claims. If the earnings rule were abolished altogether we should expect full take up.