HC Deb 23 November 1971 vol 826 cc1119-20
12. Mr. Wingfield Digby

asked the Chancellor of the Exchequer whether he will consider a substantial increase in the age exemption limits, to help pensioners and those living on small fixed incomes when the new system of personal taxation is introduced.

Mr. Barber

I am very conscious of the difficulties which elderly people face as a result of the inflation of the past few years. The age exemption limit has been increased in respect of this year, 1971–72, and will be increased further in respect of next year, 1972–73. These increases were provided for in this year's Finance Act. I have noted my hon. Friend's suggestion.

Mr. Digby

I thank my right hon. Friend for that reply. Will he accept the principle that elderly people living on private pensions or savings deserve special tax concessions, whatever the system?

Mr. Barber

It will be of some assurance to my hon. Friend when I say that the new system of personal taxation to which he refers has no particular relevance to the age exemption limits.

Mr. Boyd-Carpenter

Will my right hon. Friend give special consideration to those people who have been on sickness benefit, which is tax free, and who, on reaching retirement age, pass to a retirement pension which is taxable and therefore face a reduction in their already low standards of life?

Mr. Barber

I will consider what my right hon. Friend said.

Mr. Arthur Davidson

To save the right hon. Gentleman the trouble of answering Question 25, which we may not reach, may I ask him to bear in mind that pensioners regard the retirement pension—and always have regarded it—as sacred, something upon which the Inland Revenue should not get its hands? I am not blaming him for this: I am indicating all successive Chancellors. Would he bear in mind the suggestion that, when the pension is thrown in with other income and is taxable, it should be taxed at a much lower rate than any other form of income?

Mr. Barber

That is a point of view, but it goes very much wider than this Question, which is concerned with age exemption limits and the new system of personal taxation.

18. Dame Irene Ward

asked the Chancellor of the Exchequer if he will consider, in the context of the old age tax relief, that widows and single women retirement pensioners have to wait five years before becoming eligible for a higher basic tax-free income; and, in view of the substantial rise in prices, if he will take steps to make age relief available at 60 years for all, in order to assist the low income groups of all ages.

Mr. Patrick Jenkin

I have noted my hon. Friend's suggestion.

Dame Irene Ward

Noting my suggestion is not any use at all—

Mr. Speaker

Order. The hon. Lady must ask a question and not make an observation.

Dame Irene Ward

Will my hon. Friend please bear in mind, arising out of all the sympathetic answers with no action that have emanated from the Exchequer, that he can have a Green Paper from those of us who are interested in these groups? May we please have a meaningful discussion with all the Treasury Ministers to see whether we can remedy more of the injustices that need remedying?

Mr. Jenkin

I am certain that my hon. Friend would dislike me the more if I were to ignore the points she makes, and I have no intention of doing that. We are examining, and will always keep under continuous examination, the personal allowances. My hon. Friend is now asking for the age of 60 to be the qualifying age for everyone, men and women. We have taken note of her suggestion and I assure her that if she wishes to discuss the matter with either myself or my colleagues, we shall be only too pleased to meet her.