§ Miss Richardsonasked the Secretary of State for Social Services what is his estimate of the total saving in expenditure in the year November 1980–81 if the Social Security (No. 2) Bill becomes law; and if he will explain how that saving will be made up.
§ Mr. PrenticeThe financial effects of the Bill are best considered in terms of financial years. In the financial year 1981–82 the total savings if the Bill became law would be of the order of £270 million. This is made up as follows:
£ million Clause 1 (5 per cent. abatement of uprating) 130 Clause 3 (changes in linking provisions) 20 Clause 4 (changes to earnings related supplement) 80 Clause 5 (changes in unemployment benefit provision for occupational pensioners) 25 In addition to the above, savings will result from clauses 2 and 6, but it is not possible to give a precise figure for them. Clause 2, permitting no increase in the retirement pensioners' earnings limit, is likely to result in savings of £1 million at current benefit levels for each 1 per cent. by which the Secretary of State estimated that earnings would rise over the review period; the savings resulting from clause 6 would depend upon the incidence of strikes and on actual amounts of strike pay.