Pensioners (Medical Insurance)

Oral Answers to Questions — National Finance – in the House of Commons at 12:00 am on 23 February 1989.

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Photo of Mr Allen McKay Mr Allen McKay , Barnsley West and Penistone 12:00, 23 February 1989

To ask the Chancellor of the Exchequer what is his latest estimate of the total cost to the Exchequer in a full year, of tax relief for private medical insurance for pensioners.

Photo of Mr Norman Lamont Mr Norman Lamont , Kingston upon Thames

I refer the hon. Member to the reply that I gave to the hon. Member for Dunfermline, East (Mr. Brown) on 21 February, at columns 542–43.

Photo of Mr Allen McKay Mr Allen McKay , Barnsley West and Penistone

Why should my pensioners who have worked and been taxed all their working life, and use the National Health Service, now have to subsidise those who wish to use private care?

Photo of Mr Norman Lamont Mr Norman Lamont , Kingston upon Thames

The purpose of the relief is to give help to older pensioners when they face increasing health costs. That will relieve pressure on the National Health Service, and that is to the benefit of everybody who uses the state service.

Photo of Mr Nicholas Bennett Mr Nicholas Bennett , Pembroke

Does my right hon. Friend agree that tax relief would be lower if the earnings rule for pensioners were abolished? Will he bear that in mind in preparing the Budget as one way of helping to increase pensioners' earning power at a stroke?

Photo of Mr Norman Lamont Mr Norman Lamont , Kingston upon Thames

I note my hon. Friend's suggestion.