HC Deb 09 March 1971 vol 813 cc235-6
22. Mr. Farr

asked the Chancellor of the Exchequer if he will seek to raise the weekly amount a widow can earn without incurring taxation.

Mr. Patrick Jenkin

I have noted my hon. Friend's suggestion.

Mr. Farr

Is my hon. Friend aware that widows work beside married women who can earn £8 a week tax-free against a widow's £3 a week? Does he agree that this bears very hard on widows? Will he raise their tax threshold?

Mr. Jenkin

It is generally understood in the House that the reason for the discrepancy to which my hon. Friend draws attention is the fact that a widow's pension is paid gross. It is taxable income, and allowances are set against it. Therefore, there is less of the allowances to set against her earnings. That is the reason for the difference. I shall not be drawn into what might be in my right hon. Friend's Budget Statement.

Mr. Lipton

Will the hon. Gentleman have a word with the Departments concerned to deal with the analogous problem of the earnings rule? Is not it time the earnings rule was substantially amended?

Mr. Jenkin

I have no doubt that the Departments concerned will take note of what the hon. Gentleman said.