§ 40. Mr. David Atkinson
asked the Secretary of State for Social Services if he will estimate how much revenue would be lost by abolishing the earnings rule in 1984–85.678W
§ Dr. Boyson
There would be no loss in revenue if the earnings rule for retirement pensioners was abolished. The costs to Government would arise from paying extra pension to those whose pension is currently reduced or extinguished by the earnings rule and paying pensions to those who are currently deferring their retirement. The Department estimates that the cost to the social security programme would be in the order of £160 million a year. If account is taken of the consequential effects on tax and any contribution revenue, the net cost to central Government is estimated to be around £60 million a year.