§ 39. Mr. J. GARDNERasked the Chancellor of the Exchequer whether he is prepared to revise the Regulations respecting old age pensioners which makes provision for assessing the interest on their savings at 5 per cent. even when their money is deposited in the Post Office Savings Bank and only receiving 2½ per cent.?
§ Mr. SNOWDENMy attention has been called in the course of debate to this and many other details of the present scheme of old age pensions. But, as the Financial Secretary has already explained, it has been necessary to confine the proposals now before the House strictly to a simple amendment of the law on general lines in order that the Bill may pass into law at an early date.
§ Mr. WRAGGIs the right hon. Gentleman aware that any amount of capital over £400, in the case of an old age pensioner, is assessed as bringing in 10 per cent. and not 5 per cent.; and as 10 per cent. cannot possibly be realised on that capital, cannot steps be taken to remedy this injustice?
§ Mr. SNOWDENI am perfectly aware of the fact mentioned by the hon. Member. It is a highly technical matter, but briefly I may say that it is calculated upon an annuity basis, and that it gives terms more favourable to the old age pensioner than an ordinary annuity would.