§ Mr. Sproat
asked the Chancellor of the Exchequer what is his latest estimate of the loss to the Treasury in revenue of abolishing the earnings rule for all retirement pensioners.
§ Mr. O'Malley
I have been asked to reply.
The cost to the National Insurance Fund of abolishing the earnings rule for retirement pensioners and the similar rule applicable to the dependent wives of retirement and invalidity pensioners would be about £165 million a year at present pension rates. It is estimated that the additional income tax payable by those affected by the abolition of the rule would be about £40 million a year.