HC Deb 21 May 1996 vol 278 cc180-1W
21. Mr. Canavan

To ask the Secretary of State for Social Security what recent representations he has received about reduced earnings allowance; and if he will make a statement. [28825]

Mr. Roger Evans

Reduced earnings allowance continues to be paid as before to anyone who is under pensionable age or continuing in regular employment. A number of hon. Members have written to Ministers about the amendments to regulations from 24 March which brought in fairer rules for the transfer of people on reduced earnings allowance to retirement allowance when they reach pensionable age and give up regular employment.

Mr. Dalyell

To ask the Secretary of State for Social Security if he will make a statement on the operation of the reduced earnings allowance. [28909]

Mr. Evans

Parliament agreed, in passing the 1988 Social Security Act, that compensation for loss of earnings through reduced earnings allowance should continue to past pension age only for those men and women who continued in regular employment. Otherwise it should cease and be replaced by retirement allowance, payable at no more than 25 per cent. of the rate of reduced earnings allowance.

Amendment regulations which came into force on 24 March ensure this principle is applied fairly and consistently. These regulations were debated in Standing Committee on 8 May 1996.