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.
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.
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?