§ 5. Mr. E. Johnsonasked the Minister of Pensions and National Insurance what would be the cost of abolishing Tobacco Duty relief for retirement pensioners and increasing all retirement pensions by the value of this relief.
§ Mr. Boyd-CarpenterThe cost of Tobacco Duty relief for retirement pensioners in the financial year 1956–57 was about £15½ million. To increase all retirement pensions by the value of this relief to pensioners who smoke, that is by 2s. 4d. a week, would cost the National Insurance Fund just under £28 million in the current financial year rising to about £45 million in 1979–80.
§ Mr. JohnsonIs my right hon. Friend aware that the present system is rather unsatisfactory, because it means that those whose need is greatest cannot afford to benefit by this concession and that it benefits those who need it least?
§ Mr. Boyd-CarpenterI am aware, both in my present office and from my previous experience at the Treasury, that this arrangement is not without its disadvantages.