§ Mr. CummingsTo ask the Secretary of State for Social Security how many people in the Easington constituency, by ward, receive reduced earnings allowance at present, how many will receive reduced earnings allowance after April 1989; and what are the current amounts paid in reduced earnings allowance and the amounts expected to be paid out in reduced earnings allowance after April 1989.
§ Mr. ScottEasington is served by Peterlee and Seaham local offices, although their boundaries are not coterminous with the constituency; information by ward is not available. At 12 January, 1,471 people were receiving reduced earnings allowance from the Peterlee office and 243W 686 from Seaham. I regret that information relating to wards and the amounts of benefit paid could be provided only at disproportionate cost.
§ Mr. CummingsTo ask the Secretary of State for Social Security what criteria are used in assessing levels of reduced earnings allowance; what effect the receipt of other benefits, including invalidity benefit, has on the level of reduced earnings allowance; what plans there are to change such criteria; and if these changes have been advertised.
§ Mr. ScottEntitlement to reduced earnings allowance arises where an industrial accident or disease causes disablement of at least 1 per cent. and a person's capacity to earn is reduced as a result. The level of benefit is calculated by comparing pre—and post-disablement earnings and is subject to a maximum of £26.88 a week at today's rates; it is not affected by receipts of other benefits. There are no plans to change the criteria for assessing the level of benefit. Information about the allowance is available in the Department's leaflet on industrial injuries disablement benefit.
§ Mr. CummingsTo ask the Secretary of State for Social Security (1) what safeguards are being introduced for those people who currently receive reduced earnings allowance, especially those on other social security benefits, when the proposed ending of the reduced earnings allowance takes place;
(2) how the proposed ending of the reduced earnings allowance will affect people over retirement age; and whether safeguards are being incorporated to ensure that retired persons do not lose out as a result of the April 1989 changes.
§ Mr. ScottPeople in receipt of reduced earnings allowance who are of pensionable age and who retire on or after 10 April will no longer be entitled to the allowance. The vast majority of them will become automatically entitled to a new benefit, retirement allowance, which will be paid at 25 per cent. of the former entitlement to reduced earnings allowance. Retirement allowance will be uprated annually in line with prices. Beneficiaries of reduced earnings allowance who retire before 10 April will retain their entitlement, although the rate will not be reviewed. No special safeguards are being introduced. The change removes the long-standing and widely recognised anomaly by which compensation for loss of earnings can continue beyond retirement when earnings would normally have ceased in any case, and takes effect on retirement, when most people expect a reduction in their income.