§ Mr. Arthur Lathamasked the Secretary of State for Social Services (1) what would be the estimated cost to the National Insurance Fund in 1976–77, at current levels of benefit, of increasing the earnings rule threshold for retirement pensioners to £35 (a) if the retirement condition is preserved and (b) if the retirement condition is abandoned; how many pensioners would benefit under (a) and (b), respectively; and what is his estimate of the additional tax revenue which would accrue to the Treasury under (a) and (b) above, assuming current rates of tax;
(2) what would be the estimated cost to the National Insurance Fund in 1977–78 at current levels of benefit of increasing the earnings rule threshold for retirement pensioners to £50 (a) if the retirement condition is preserved and (b) if the retirement condition is abandoned; how many pensioners would benefit under (a) and (b) above, respectively; and what is his estimate of the additional tax which would accrue to the Treasury under (a) and under (b) above, assuming current rates of tax;
(3) what is the estimated cost of abolishing the earnings rule in 1976–77 and 1977–78 (a) if the retirement condition is preserved and (b) if the retirement condition is abandoned.
§ Mr. OrmeFor the costs assuming preservation of the present retirement condition I would refer my hon. Friend to the reply given to the hon. Member for Rushcliffe (Mr. Clarke) on 5th March—[Vol. 906, c.800–1.] Abandonment of the retirement condition would lead to increased benefit and administration costs, principally in respect of payment to non-working wives over 60 of men continuing in work after age 65. It will take some time to prepare cost estimates but I will arrange for their circulation in the Official Report in due course.
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