Earnings Rule

Oral Answers to Questions — Pensions and National Insurance – in the House of Commons at 12:00 am on 7th February 1966.

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Photo of Mr Julian Ridsdale Mr Julian Ridsdale , Harwich 12:00 am, 7th February 1966

asked the Minister of Pensions and National Insurance whether she will now make further relaxations in the earnings rule, in view of the increase in the cost of living.

Photo of Mr Patrick Jenkin Mr Patrick Jenkin , Wanstead and Woodford

asked the Minister of Pensions and National Insurance why the definition of net earnings which may be disregarded for the purpose of the operation of the earnings rule allows the deduction of Income Tax payable under the Pay-As-You-Earn scheme but not Income Tax payable under Cases I and II of Schedule D; and whether she will introduce legislation to rectify this anomaly.

Photo of Miss Peggy Herbison Miss Peggy Herbison , Lanarkshire North

I would ask the hon. Gentleman to await my speech a little later this afternoon, when I hope to say something relevant to this matter.

Photo of Mr Julian Ridsdale Mr Julian Ridsdale , Harwich

Does the Minister realise that she gave a very ambiguous statement in her recent television broadcast when it appeared that she had abolished the earnings rule altogether? When, indeed, will the Minister abolish the earnings rule, as she promised at the last election?

Photo of Miss Peggy Herbison Miss Peggy Herbison , Lanarkshire North

What the hon. Member has said in the last part of his supplementary question is quite untrue. No statement was made before last election that the earnings rule would be abolished for pensioners. I am sorry that the hon. Member was not able to listen clearly to what I said in the broadcast concerning widows.

Photo of Mr Patrick Jenkin Mr Patrick Jenkin , Wanstead and Woodford

Would not the right hon. Lady recognise that the anomaly to which Question No. 10 draws attention is totally unjustifiable and that there can be no logic in differentiating between pensioners by reference to the method by which tax is deducted from their pay on their other earnings?

Photo of Miss Peggy Herbison Miss Peggy Herbison , Lanarkshire North

Perhaps the hon. Member will be present when I deal with the Second Reading of the National Insurance Bill later this afternoon.