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The abolition of the pensions 'earnings rule'

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  • Edward Whitehouse

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.

Suggested Citation

  • Edward Whitehouse, 1990. "The abolition of the pensions 'earnings rule'," Fiscal Studies, Institute for Fiscal Studies, vol. 11(3), pages 55-70, August.
  • Handle: RePEc:ifs:fistud:v:11:y:1990:i:3:p:55-70
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    References listed on IDEAS

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    1. Mervyn A. King, 1983. "The Distribution of Gains and Losses from Changes in the Tax Treatment of Housing," NBER Chapters,in: Behavioral Simulation Methods in Tax Policy Analysis, pages 109-138 National Bureau of Economic Research, Inc.
    2. Callan, Tim, 1991. "Property Tax: Principles and Policy Options," Research Series, Economic and Social Research Institute (ESRI), number PRS12.
    3. John Hills & Holly Sutherland, 1991. "The proposed Council Tax," Fiscal Studies, Institute for Fiscal Studies, pages 1-21.
    4. McClements, L. D., 1977. "Equivalence scales for children," Journal of Public Economics, Elsevier, vol. 8(2), pages 191-210, October.
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    Cited by:

    1. Whitehouse, Edward, 1998. "Pension Reform in Britain," MPRA Paper 14175, University Library of Munich, Germany.
    2. Disney, Richard & Whitehouse, Edward, 1999. "Pension plans and retirement incentives," Social Protection and Labor Policy and Technical Notes 20851, The World Bank.
    3. Meghir, Costas & Whitehouse, Edward, 1997. "Labour market transitions and retirement of men in the UK," Journal of Econometrics, Elsevier, vol. 79(2), pages 327-354, August.
    4. 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 136-152, March.
    5. Kamil Galuscak, 2001. "Retirement Decisions of Older Czech Male Workers," CERGE-EI Working Papers wp190, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    6. Paul Johnson & Gary Stears, 1996. "Pensioner income inequality," Fiscal Studies, Institute for Fiscal Studies, vol. 16(4), pages 69-93, November.
    7. 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.
    8. Richard Blundell & Paul Johnson, 1999. "Pensions and Retirement in the United Kingdom," NBER Chapters,in: Social Security and Retirement around the World, pages 403-435 National Bureau of Economic Research, Inc.

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