§ Mr. Andrew F. Bennett
asked the Secretary of State for Social Services what is the real saving on the abolition of the 397W earnings-related supplement if contributions are to be reduced to compensate for its absence.
§ Mrs. Chalker
Abolition of the earnings-related supplement will lead to a reduction in benefit expenditure from the National Insurance Fund of the order of £360 million in the financial year 1982–83. There is no separate contribution for earnings-related supplement. Total benefit outgo for 1982–83 cannot be forecast in detail at this stage, and hence it is not possible to indicate what contribution rate would then be appropriate. That will be decided in the autumn of 1981 in the light of advice from the Government Actuary, who will take account of all the factors involved, of which the abolition of the supplement will be one.