§ Mr. Maurice Macmillanasked the Secretary of State for Social Services what would be the loss of revenue in the next financial year from an abolition of the pensioner's rule; how many retirement pensioners are having their pensions reduced because of the level of their earnings; and what are the average earnings of this group of pensioners.
§ Mr. OrmeDetailed estimates of the costs of abolishing the earnings rule and with it the retirement condition, for retirement pensioners, are set out in the report on the earnings rule for retirement pensioners and the wives of retirement and invalidity pensioners, which was laid before the House on 24th October.
These estimates show that, while there would be no loss of revenue, there would 203W be substantial additional expenditure, ranging from £64 million to £124 million, taking the year November 1978 to November 1979, depending on the extent to which those in employment after pension age continued to defer taking their pension in order to earn a higher pension later. About 4,000 retirement pensioners have their pensions reduced because of the level of their earnings. Their average earnings in April 1978, the latest date for which a figure is available, were £58.70 a week.