HC Deb 02 December 1969 vol 792 cc1289-90
39. Mr. Lipton

asked the Chancellor of the Exchequer what is his estimate of the cost of exempting State retirement pensions from income tax.

Mr. Diamond

About £150 million for a full year.

Mr. Lipton

While I do not want to anticipate the Chancellor's Budget State- ment, could my right hon. Friend give some consideration to the abolition of the earnings rule, or at least make some concession for the benefit of pensioners, who have already paid for their pensions?

Mr. Diamond

The earnings rule is a matter not for me but for my right hon. Friend the Secretary of State for Social Services.

Sir B. Rhys Williams

Would it not be better to make the contributions allowaable once again for tax purposes?

Mr. Diamond

The hon. Gentleman knows the history of this. He knows that there was a compounding of the allowance given at a particular time.