§ Mr. Edgeasked the Secretary of State for Social Services if she will change the year on which earnings related sickness benefit is calculated from the calendar year to the tax year and base all benefits on the contributions paid during the tax year preceding the one which a claim is made irrespective of there being any previous periods when sickness benefit was payable.
§ Mr. O'MalleyEarnings in one income tax year determine the rate of earnings-related supplement for claims in any period of interruption of employment beginning in the calendar year which starts in the January after the end of that tax year. It would be difficult to change the rate of benefit where a claim in one calendar year "links" with a claim in an earlier year. Moreover, such a change would not necessarily result in a higher rate of earnings-related supplement; and, as far as flat-rate benefits are concerned, the easier contribution conditions laid down in the Social Security Act 1975 will mean that the number of those who fail to qualify for full benefit, and who might, therefore, gain from the subsequent use of a later contribution year, would be very small. For these reasons I have no proposals in the sense suggested by my hon. Friend.