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Retirement Age

Volume 451: debated on Wednesday 1 November 2006

To ask the Chancellor of the Exchequer whether he has made any estimate of (a) how much tax revenue is lost each year as a result of the default retirement age of 65 years and (b) the number of people who would wish to continue working beyond the default retirement age. (97134)

I have been asked to reply.

In March 2006 we published the final regulatory impact assessment (RIA) for the Employment Equality (Age) Regulations. It estimated an increase in tax revenues of between £8 million and £52 million in the first year following introduction of the legislation. This rises to between £40 million to £240 million after 10 years. The RIA also estimated that in the first year the legislation would lead to an initial increase in labour supply of 3,000 people aged 65 and over, leading to a total increase to 14,000 after 10 years.