§ Mr. Douglas-Mannasked the Secretary of State for Social Services whether, in view of the fact that, by reason of the earnings rule for pensioners, earnings above a certain level are both deducted in full from the pension and subjected to income tax, resulting in an effective tax rate of £1.33 in the £, she will make proposals for ending this situation.
§ Mr. Robert C. BrownWhere a pensioner has earnings above a certain level, there is under the earnings rule a pound-for-pound deduction from his pension in respect of these additional earnings; but as his total income does not go up as a result of these earnings he does not of course pay any additional tax overall. More generally, I would remind my hon. Friend of the substantial relaxation in the earnings rule which will come into effect as from 22nd July.