Pensioners (Earnings Rule)

HC Deb 11 July 1974 vol 876 cc530-1W

Mr. Hannam

asked the Chancellor of the Exchequer what is his estimate of the PAYE income to the Exchequer from pensioners not yet retired if the pensions earnings rule were to be abolished.

Dr. Gilbert

The estimated amount of pensions forgone on account of the earnings rule is £140 million on which income tax would amount to about £40 million, though not all of this would be collected through the PAYE system. There is no information on which to base an estimate of the additional wages and salaries that pensioners might have if the earnings rule was abolished, nor of the extra revenue that would accrue in tax on these.

Mr. Hannam

asked the Chancellor of the Exchequer what is his estimate of the extra PAYE revenue from the earnings of pensioners who would work if the earnings rule were abolished.

Dr. Gilbert

I regret that there is no information available on which to base an estimate.