Mr. Tim Duggan:

If the Deputy works it through to the net, he will end up with what is in each person’s pot and what is in each person’s take-home pay. I absolutely admit that the person who is in an occupational scheme and who is getting tax relief at 40% will end up with a slightly higher take-home pay than a person in AE. The reason for that is that in AE the concentration is not on the high earners; it is on the low to middle earners. The Government decision is that everyone should be treated the same in terms of incentivisation rather than differentially. This is because somebody who is on a low rate of a tax or on no rate of a tax - which by the way is a decent number in this system - would get nothing by way of incentivisation if you applied the tax relief system.