THIS popular column by welfare rights expert Jim Strang this week concerns the transfer of Reduced Earnings Allowance (REA) to Retirement Allowance when men and women become pensioners. It also deals with the recent court of appeal decision.

REDUCED EARNINGS ALLOWANCE (REA)

REA is paid to compensate people who had an industrial accident or suffer from an industrial disease before October 1990. New legislation introduced in 1996 meant that pensioners lost around £30 per week when the REA was transferred to retirement allowance.

THE NEW LAW

The new law was introduced when the Conservatives were in power but were not amended when Labour took power. In fact, it appeared that there was some sympathy for the pensioners by many Labour MPs.

HAMMON & PLUMMER

There have been two test cases which have been heard recently by the Court of Appeal about the validity of the new legislation introduced in March 31, 1996. The Court of Appeal judges decided that the legislation did have the effect that a pensioner could be stripped of the money and transferred to Retirement Allowance but it did not deal with the legal argument concerning the ultra vires issue.

WHAT NOW?

I am currently seeking further advice from a QC regarding the ultra vires issue so watch this space for further updates. I do not wish to raise people's hopes unnecessarily but I am still pursuing the matter. At the moment the men have lost. The women's cases have been referred to the European Court and a preliminary decision is awaited on their case. As it stands, the women's cases are still alive and I hope to give an update on all the points raised in this article in the near future.

JIM STRANG COMMENTS:

If you need to know more about this or any other welfare rights matter, you can write to Jim Strang at Unit 7, 36 Beechwood Drive, Beechwood Estate, Birkenhead, enclosing an SAE. If you wish him to act on your behalf, call 606-1188, 10am - 4pm, Monday to Friday.

Jim Strang represents clients on a 'no win, no fee' basis.

Converted for the new archive on 13 March 2001. Some images and formatting may have been lost in the conversion.