HC Deb 15 December 1980 vol 996 cc36-7W
Mr. McQuarrie

asked the Secretary of State for Social Services if he will amend the overlapping benefits rule which would enable widows who pay the full national insurance contributions to receive the same benefit as other working women.

Mrs. Chalker

No. A widow paying the full national insurance contributions, who falls sick or becomes unemployed, receives an amount of benefit equivalent to the amount of the short-term benefit for which she has qualified by the payment of contributions or the basic amount of her widow's benefit, whichever is the higher, plus her additional component of widow's benefit. If there are children of her marriage, she also qualifies for children's dependency additions at the higher long-term rate. If she suffers long-term incapacity, she receives, within an overall ceiling equal to the current amount of a maximum rate retirement pension, any invalidity benefit on her own insurance, her widow's benefit, and the additional components payable with either benefit. Further preferential treatment of widows would be difficult to justify. A fully insured working widow can never receive less benefit under the overlapping benefits rule, and usually will receive more benefit, than other working women.

Mr. McQuarrie

asked the Secretary of State for Social Services if he will adjust the sliding scale of age-related widows' pension paid to widowed women between the ages of 40 and 50 years so that the full widow's pension level, when the widow reaches the age of 50 years, is payable.

Mrs. Chalker

I refer my hon. Friend to my reply to the hon. Member for Normanton (Mr. Roberts) on 2 December—[Vol. 995. c.176.]

Mr. McQuarrie

asked the Secretary of State for Social Services what loss will be suffered by working women who are at present in receipt of a widow's pension due to the proposed national insurance contributions when the widow's pension is assumed as earned income when grossed up with the payment received for the gainful employment.

Mrs. Chalker

Women who pay the standard rate national insurance contribution, whether or not in receipt of a widow's pension, would be required to pay a further 1 per cent. (7.75 per cent. instead of 6.75 per cent.) of earnings up to £200 per week if their earnings reached £27 per week.

Women who have opted to pay the reduced rate would be required to pay a further 0.75 per cent. (2.75 per cent instead of 2.0 per cent) of earnings up to £200 per week if their earnings reached £27 per week.

Widow's pension is not treated as earnings for contributions purposes. The proposed new rates take effect from 6 April 1981.