§ Mr. Gordon BrownTo ask the Chancellor of the Exchequer what is his estimate of the cost of the average private medical insurance policy with comprehensive cover for(a) a pensioner aged over 60 years, (b) a pensioner aged over 70 years and (c) a pensioner aged over 80 years.
§ Mr. Norman Lamont[holding answer 17 March 1989]: Information broken down in this way is not available.
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§ Mr. Gordon BrownTo ask the Chancellor of the Exchequer (1) if he will make available the estimates used in his calculation of £40 million tax relief for 1989–90 for the private medical insurance premium for the average pensioner;
(2) what is his estimate of the average premium paid for private medical insurance by those aged over 60 years who currently hold private medical insurance policies;
(3) what is his estimate of the proportion of the £40 million set aside for tax relief for private medical insurance that will go to top-rate taxpayers.
§ Mr. Norman Lamont[holding answer 17 March 1989]: Tax relief on private medical insurance for the over-60s will not be available until 1990–91, when about 330,000 tax units (single people and married couples) aged 60 or above are expected to qualify for tax relief on medical insurance. The average subscription per tax unit is estimated to be about £400. Around one half of the cost of relief is expected to be received by higher-rate taxpayers.
§ Mr. Gordon BrownTo ask the Chancellor of the Exchequer what is his estimate of the cost of private medical insurance tax relief if(a) 1 million (b) 1.2 million (c) 1.5 million and (d) 2 million qualify for tax relief.
§ Mr. Norman Lamont[holding answer 17 March 1989]: The cost of relief at the various levels of take-up specified would depend on the type of policies taken out and the marginal tax rate of the payers of the premiums. These would be likely to vary with the level of take-up.