§ 39. Mr. BradyTo ask the Chancellor of the Exchequer what estimate he has made of the public expenditure implications of the withdrawal of tax relief for private health insurance for pensioners. [12687]
§ Dawn PrimaroloNo firm estimate is available of the public expenditure costs arising from the withdrawal of tax relief for private medical insurance for those aged over 60. This depends on the number of those affected who give up their policies. In the light of past experience, we believe that no more than a small proportion will give up their policies so that the public expenditure cost will be significantly lower than the full-year saving of £140 million. Details of the public expenditure element of that saving are given at paragraph 2A.6 of the "Financial Statement and Budget Report 1997".