§ Mr. Higginsasked the Secretary of State for Social Services what expenses are allowed when computing pensioners' income tax for the purpose of applying the earnings rule; what limits are imposed on the amount of such expenses; and when these limits were last updated.
§ Mr. RossiThe earnings rule for retirement pension is applied to gross earnings, subject only to allowances for certain expenses which are reasonably incurred by the pensioner in respect of(a) any work expenses such as trade union subscriptions, fares, overalls, or tools, (b) the cost of the care of a member of the pensioners' household while the pensioner is at work; and (c) the cost up to 15 pence, of each meal taken during working hours for which no meal voucher has been provided. There are no absolute limits on items in (a) and (b) save that the cost must be reasonable. The limit of 15 pence (c) has not been changed since it was introduced in 1967. The limit follows a similar provision in the rules for the deduction of expenses for computing income tax.