§ Mr. MaddenTo ask the Secretary of State for Social Security what is his estimate of the numbers of people who retired on or after 10 April 1989 who no longer receive the reduced earnings allowance but receive the retirement allowance; what is the maximum loss of income which this change causes; and if he will make a statement.
§ Mr. Peter LloydIt is estimated that 1,200 people who retired on or after 10 April 1989 are in receipt of retirement allowance. For virtually all recipients, the maximum possible benefit loss would be £21.36 a week. For a very small number of beneficiaries, fewer than five, who have two awards at the maximum rate of reduced earnings allowance, the maximum loss would be £49.84 a week.
§ Mr. MaddenTo ask the Secretary of State for Social Security what is the estimated saving in public expenditure in each of the next five years from replacing the reduced earnings allowance with the retirement allowance for people who retired on or after 10 April; and if he will make a statement.
§ Mr. Peter LloydIt is not feasible to give firm estimates of future savings from this change. The estimated savings for the next three years are as follows:
£ million 1989–90 2.0 1990–91 5.6 1991–92 9.7