HC Deb 18 November 1996 vol 285 cc453-4W
Mr. Frank Field

To ask the Secretary of State for Social Security (1) how many claimants possessing documentary evidence of being awarded reduced earnings allowance for life have presented their evidence to the Benefits Agency; how many of these have been compensated; and at what estimated cost to his Department; [4091]

(2) when the (a) investigation and (b) compensation processes into claimants possessing documentary evidence of being awarded reduced earnings allowance for life commenced; and when he expects that they will be completed. [4090]

Mr. Roger Evans

To receive compensation a person must be able to show a financial loss because a commitment was undertaken in reliance on an unconditional official assurance that reduced earnings allowance would continue in payment for life or some other period.

Awards of reduced earnings allowance, for whatever period, are always made subject to the requirements for entitlement continuing to be satisfied. For those over pension age, the condition is that the recipient continues in regular employment or can be treated by regulations as continuing in regular employment. No-one awarded reduced earnings allowance since April 1989 should have been given an unconditional assurance of future payment. I am aware that some such assurances may have been given and that the Benefits Agency is considering claims for compensation from people transferred from reduced earnings allowance to retirement allowance as they arise. To date, none of the four claims considered has satisfied the criteria for payment.

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