asked the Secretary of State for Social Services how much of the cost of raising the earnings rule limit from £35 to £50 is attributable to the increased pensions which would be payable to retirement pensioners whose pensions are currently reduced or extinguished because of the earnings rule.

Out of the estimated cost in 1977–78 of moving from a £35 earnings limit, increased in line with earnings as proposed in the Social Security (Miscellaneous Provisions) Bill, to one of £50, some £3 million is attributable to the increased personal pensions payable to those retirement pensioners who would be affected by the £35 earnings limit proposed in the Bill.

asked the Secretary of State for Social Services what would be the cost at current rates of benefit of moving from the £50 per week earnings rule limit to complete abolition.

The estimated cost to the National Insurance Fund would be about £150 million in 1977–78, offset by some £45 million in respect of additional tax yields and a saving in exchequer supplement to the Fund.