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The abolition of the pensions 'earnings rule'

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Author Info
Edward Whitehouse

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Abstract

The then Chancellor announced in his Budget Speech in 1989 that the 'earnings rule' for pensioners, which had been introduced in 1948, would be abolished from 1 October 1989. The rule reduced entitlements to the state pension if earnings were above a certain level. At the same time, the Department of Social Security (DSS) proposed that the restriction on pensioners needing to prove that they are retired before claiming their pension should also be removed from October 1989. In practice, this provision restricted the number of hours that pensioners could work and the type of job they could hold whilst receiving their state pension.

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Publisher Info
Article provided by Institute for Fiscal Studies in its journal Fiscal Studies.

Volume (Year): 11 (1990)
Issue (Month): 3 (August)
Pages: 55-70
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Handle: RePEc:ifs:fistud:v:11:y:1990:i:3:p:55-70

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  1. Whitehouse, Edward, 1998. "Pension Reform in Britain," MPRA Paper 14175, University Library of Munich, Germany. [Downloadable!]
  2. Kamil Galuscak, 2002. "Retirement Decisions of Older Czech Male Workers," Labor and Demography 0203001, EconWPA. [Downloadable!]
    Other versions:
  3. Richard Disney & Sarah Smith, 2002. "The Labour Supply Effect of the Abolition of the Earnings Rule for Older Workers in the United Kingdom," Economic Journal, Royal Economic Society, vol. 112(478), pages C136-C152, March. [Downloadable!] (restricted)
    Other versions:
  4. Paul Johnson & Gary Stears, 1996. "Pensioner income inequality," Fiscal Studies, Institute for Fiscal Studies, vol. 16(4), pages 69-93, November. [Downloadable!]
  5. James Banks & Carl Emmerson, 2000. "Public and private pension spending: principles, practice and the need for reform," Fiscal Studies, Institute for Fiscal Studies, vol. 21(1), pages 1-63, March. [Downloadable!]
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