The abolition of the pensions 'earnings rule'

<p>The then Chancellor announced in his Budget Speech in 1989 that the 'earnings rule' for pensioners, which had been introduced in 1948, would be abolished from 1 October 1989. The rule reduced entitlements to the state pension if earnings were above a certain level. At the same time, the Department of Social Security (DSS) proposed that the restriction on pensioners needing to prove that they are retired before claiming their pension should also be removed from October 1989. In practice, this provision restricted the number of hours that pensioners could work and the type of job they could hold whilst receiving their state pension.</p>