State Earnings-related Pension Scheme

Oral Answers to Questions — National Finance – in the House of Commons at 12:00 am on 27th June 1985.

Alert me about debates like this

Photo of David Winnick David Winnick , Walsall North 12:00 am, 27th June 1985

asked the Chancellor of the Exchequer if he will make a statement about the likely cost to the Exchequer over the next five years of extra tax concessions to pension funds that will result from the proposals for the phasing out of the state earnings-related pension scheme.

Photo of Mr John Moore Mr John Moore , Croydon Central

No extra tax concessions are envisaged. The proposed arrangements would be subject to the same tax treatment as existing superannuation arrangements.

Photo of David Winnick David Winnick , Walsall North

Is not the position that the phasing out of SERPS will mean an overall cost to the Treasury? Is this one of the reasons why there was such a severe clash between the Chancellor and the Secretary of State for Social Services, which the Prime Minister tried to resolve?

Photo of Mr John Moore Mr John Moore , Croydon Central

No, in so far as the last apocalyptic aspects of the hon. Gentleman's questions are concerned, that is not accurate. He is right to remind us of what my right hon. Friend the Secretary of State for Social Services said on 19 June in the Select Committee on Social Services, when he estimated that the proposals could reduce tax revenues by somewhere in the region of £300 million.