§ 64. Mr. Marloweasked the Chancellor of the Exchequer what is the method of calculation of means for the purpose of arriving at the amount payable in respect of an old age pension under the National Insurance Act. 1946; and at what rate per cent. a pensioner is deemed to draw income from capital.
§ Mr. DaltonFor non-contributory old age pensions the first £25 of capital is left out of account, the yearly value of the next £375 is taken at one-twentieth of the capital value, and the yearly value of the remainder is taken at one-tenth of the capital value.
§ Mr. MarloweIn view of the fact that that means, in effect, that, after the first £25, it is 5 per cent. on the next £375 and 10 per cent. thereafter, does the right hon. Gentleman agree that that is excessive in view of the fact that the Government rates are now 2½per cent.?
§ Mr. DaltonThe rates Which I have cited in the answer were determined by the Pensions and Determination of Needs Act, 1943, passed in the days of the Coalition Government. It may, of course, be argued that in view of the improvements we have made since we should revise them. I will certainly bear that in mind.