§ 53. Mr. D. G. SOMERVILLEasked the Chancellor of the Exchequer if he will state the cost of the new Government proposals, in respect of old age pensions, 1125 if the age limit were lowered from 70 to 65; and whether the abolition of the thrift penalty will cause any diminution in the cost of the machinery of investigation?
§ Mr. SNOWDENSo far as can be estimated, in the absence of knowledge as to the operation of the means limit in the case of persons between the ages of 65 and 70, the cost of pensions, if the age limit were reduced to 65 and if the new proposal as to means were applied, would be £42,000,000 against the present expenditure of £24,000,000; the cost would grow continuously with the increase of the aged population, and in 20 years' time would be over £70,000,000. It is not anticipated that the present proposals will on balance have any substantial effect on the cost of administration.