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The abolition of the pensions 'earnings rule'

Author

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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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    Citations

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    Cited by:

    1. Paul Johnson & Gary Stears, 1996. "Pensioner income inequality," Fiscal Studies, Institute for Fiscal Studies, vol. 16(4), pages 69-93, November.
    2. 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.
    3. 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.
    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. Whitehouse, Edward, 1998. "Pension Reform in Britain," MPRA Paper 14175, University Library of Munich, Germany.
    7. Disney, Richard & Whitehouse, Edward, 1999. "Pension plans and retirement incentives," Social Protection Discussion Papers and Notes 20851, The World Bank.
    8. 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.

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