§ 7. Mr. Ridsdaleasked the Minister of Pensions and National Insurance whether she will now make further relaxations in 7 the earnings rule, in view of the increase in the cost of living.
§ 10. Mr. Patrick Jenkinasked the Minister of Pensions and National Insurance why the definition of net earnings which may be disregarded for the purpose of the operation of the earnings rule allows the deduction of Income Tax payable under the Pay-As-You-Earn scheme but not Income Tax payable under Cases I and II of Schedule D; and whether she will introduce legislation to rectify this anomaly.
§ Miss HerbisonI would ask the hon. Gentleman to await my speech a little later this afternoon, when I hope to say something relevant to this matter.
§ Mr. RidsdaleDoes the Minister realise that she gave a very ambiguous statement in her recent television broadcast when it appeared that she had abolished the earnings rule altogether? When, indeed, will the Minister abolish the earnings rule, as she promised at the last election?
§ Miss HerbisonWhat the hon. Member has said in the last part of his supplementary question is quite untrue. No statement was made before last election that the earnings rule would be abolished for pensioners. I am sorry that the hon. Member was not able to listen clearly to what I said in the broadcast concerning widows.
§ Mr. JenkinWould not the right hon. Lady recognise that the anomaly to which Question No. 10 draws attention is totally unjustifiable and that there can be no logic in differentiating between pensioners by reference to the method by which tax is deducted from their pay on their other earnings?
§ Miss HerbisonPerhaps the hon. Member will be present when I deal with the Second Reading of the National Insurance Bill later this afternoon.