§ Mrs. Chalker
asked the Secretary of State for Social Services what studies she has carried out on the effect on willingness to work of the effective marginal rate of taxation for pensioners of (a) 85 per cent. and (b) 135 per cent. due to the combination of the earnings rule and the basic rate of income tax.
§ Mr. Meacher
The hon. Lady has overestimated the marginal rates of tax in these circumstances. However, my Department is assembling available evidence on the effect of these rates on pensioners' working behaviour and a survey into the reasons for retirement is under consideration.