HC Deb 05 June 1984 vol 61 cc145-6W
Mr. Lawrence

asked the Secretary of State for Social Services if it is now proposed to phase out the earnings rule completely.

Dr. Boyson

The abolition of the earnings rule for retirement pensions depends on the availability of resources and competing priorities. No precise timetable can, therefore, be given at this stage.

Mr. Lawrence

asked the Secretary of State for Social Services what would now be the cost to the Exchequer of the total abolition of the earnings rule.

Dr. Boyson

If the pensioner's earnings rule had been abolished in April 1984, it is estimated that the 1984–85 cost to the social security programme would have been of the order of £170 million. If account is taken of the consequential effects on tax and any contribution revenue, the net cost to central Government is estimated to be around £75 million a year.