HC Deb 28 April 1953 vol 514 cc1944-6
27. Mr. Awbery

asked the Chancellor of the Exchequer what would be the estimated cost of paying out post-war credits to men at 60 years of age and women at 55, and of paying to next of kin all postwar credits on the death of the holders, respectively.

The Chancellor of the Exchequer (Mr. R. A. Butler)

Post-war credits are at present being repaid at a rate of just over £16 million per annum. If the age for repayment were reduced by five years the total repayment in the year of change would be about £100 million and the annual repayment thereafter would be £17½ million. If repayment were made immediately on the death of the holder the total repayment in the first year, including repayment in respect of deaths which have already occurred, would be about £86 million and the annual repayment thereafter would be about £21½ million.

Mr. Awbery

Is there not a moral obligation on the Government to repay this forced loan to the old men as quickly as possible, particularly as unemployment among aged men is growing and their balance of payments problem is greater than the Chancellor's? Will he give the problem further consideration?

Mr. Butler

This is always a subject of anxiety to me and to the Government and, I suspect, it was to previous Governments, but I am afraid that in present circumstances I am unable to go any further.

Mr. J. T. Price

Will the Chancellor consider applying to these credits the law against perpetuity? As matters stand, the credits can be passed on from one generation to another, and, in my opinion, that would offend against the law of perpetuity.

Mr. Butler

I am aware that if death occurs just before 65 there will be this perpetual—I will not say "motion"— delay in these matters, and I agree that there are very great difficulties.

Mr. S. Silverman

Is it not clear that the vast majority of the people whose money was loaned in this way during the war years will never be repaid in their lifetime? If that is so, would it not be honest and decent of the Government to repudiate any liabilities more frankly?

Mr. Butler

I do not see that that would make things any better. Naturally, if there is a hope of dealing further with the matter, one would like to keep the hope alive. I repeat that this is not a matter which has concerned this Government only; it has concerned previous Governments.