§ Mr. Meacherasked the Secretary of State for Social Services if, in view of the combined effect of income tax on earnings and of the earnings rule on the net pension receipts of employed retirement pensioners, he will indicate the net income accruing to an employed retirement pensioner on each marginal £ over £9 a week up to £25 per week; and if he will formulate proposals designed to reduce the disincentive involved in these figures for pensioners.
§ Mr. DeanThe information asked for in the first part of the hon. Member's Question is given in the table below for a single male pensioner between the ages of 65 and 70 only who is assumed to have no other income and no tax allowance other than the personal one. As regards the second part of the Question, it is a basic feature of the national insurance scheme that, during the five years following minimum retirement age, there is an earnings rule to support the principle of a retirement, rather than an unconditional old age, pension; and equally a basic feature of our taxation arrangements that retirement pensions constitute taxable income.
498W
Earnings [...] after [...] adjustment if any* Gross income Net income† £ per week £ per week £ per week £ per week 9.00 7.75 16.75 15.11 10.00 7.75 17.75 15.81 11.00 7.75 18.75 16.51 12.00 7.25 19.25 16.86 13.00 6.75 19.75 17.21 14.00 6.25 20.25 17.56 15.00 5.75 20.75 17.91 16.00 4.75 20.75 17.91 17.00 3.75 20.75 17.91 18.00 2.75 20.75 17.91 19.00 1.75 20.75 17.91 20.00 0.75 20.75 17.91 21.00 — 21.00 18.08 22.00 — 22.00 18.78 23.00 — 23.00 19.48 24.00 — 24.00 20.18 25.00 — 25.00 20.88 (*) Deductible expenses in connection with the employment are assumed to be£1.50 a week throughout. (†) After deduction of income tax and national insuranc industrial injuries contribution of 5p a week