§ 19. Sir G. Nabarroasked the Chancellor of the Exchequer how much selective employment tax was retained, after repayments on all grounds from pensioners over 60 years of age being women, pensioners, both men and women, over 65 years of age, and pensioners, men and women, over 70 years of age, respectively; and what is the estimated loss in revenue from abolishing selective employment tax for pensioners over 60 years of age for women and 65 years of age for men.
§ Mr. William RodgersWe estimate that on the basis of employment figures the amount of tax due to be paid and not refunded in respect of women aged 60 to 65 is £5.5 million a year and in re- 1280 spect of men and women over 65 £4.5 million. The cost of giving full relief from the tax in respect of these employees would therefore be of the order of £10 million.
§ Sir G. NabarroWould not the hon. Gentleman concede that the collection of selective employment tax for all men and women over State pension age militates against their useful employment and leads to undue unemployment among elderly people who would otherwise be found sedentary work? Could not he consider at an early date relieving all those drawing State pensions of the S.E.T. liability?
§ Mr. RodgersNo, Sir. The relief is sufficient incentive to encourage the employment of elderly people. But this is something which we always have in mind and watch carefully.
§ Mr. Selwyn LloydWill the hon. Gentleman take into account not just the yield of selective employment tax but the cost of its collection, the administration expenses involved, and the fact that it is a disincentive for people to go on working who would be much happier doing so?
§ Mr. RodgersWe will think about that as well.