§ Mr. Patrick Jenkinasked the Secretary of State for Social Services what are the grounds for her decision to introduce legislation to amend the Social Security Act 1975 to cut the earnings limit from £50 to £35 in 1976–77.
§ Mr. O'MalleyThe reason is the need to secure a saving in an area of public expenditure which in present circumstances cannot in the Government's view command a high priority. Our actual proposal is to change the earnings limit, which would otherwise be £50 a week in the financial year 1977–78, so that it reflects movements of earnings from April 1976, when the £35 limit will come into effect. The saving will not generally be in the amounts paid to existing pensioners, very few of whom earn more than £35 a week, but in the pensions which would otherwise become payable to people in full-time work with earnings at the £50 level.