§ 14. Miss Fookesasked the Chancellor of the Exchequer if he will take steps to alter the basis on which a dependent relative allowance is granted from a sum equal to the basic retirement pension to that of subsistence level as calculated for supplementary benefits.
§ Mr. Patrick JenkinNo, Sir. While I have noted my hon. Friend's suggestion, I do not think it would be justified.
§ Miss FookesIs that not a somewhat penny-pinching attitude? Surely no one is expected to live only on his retirement pension? Would it not be more realistic if we had it brought up to subsistence level?
§ Mr. JenkinThe allowance is available to a taxpayer who has a relative who is dependent on him. Over many years it has been the view of successive Governments that the level of the basic retirement pension is the measurement of dependency. In Clause 12 of this year's Finance Bill we have taken powers to formalise that and to allow the amount to be altered as the pension is altered. This year the level of a dependant's income can rise to the pension level of £378 a year before the allowance begins to be lost. The level will be allowed to go up to £478 a year before the allowance is wholly lost.
§ Mr. Brian WaldenWill the hon. Gentleman take note of the fact that, sadly enough, millions of people have to live on the basic retirement pension alone?
§ Mr. JenkinNobody has to live only on the basic retirement pension, because he is entitled to apply for supplementary benefit.
§ Dame Irene WardDoes my hon. Friend agree that an investigation into the whole issue would be very acceptable? Further, does he agree that it is not a very good idea to say that because something has existed for about 500 years it must be right? I know how interested the Government are in trying to do the best they can. They have done a great deal more than any other Government have ever done, but that does not mean that we cannot go a little further. Can we have a little agreement that if cases are put up they will be properly examined, and that if they are well founded the Treasury will act?
§ Mr. JenkinI think that I can give my hon. Friend that assurance. No Government have shown themselves more ready than this one to break from hallowed Inland Revenue traditions in relation to tax reform. For that my right hon. Friend deserves every congratulation. We will take note of what has been said.
§ Mr. HealeyThe House will have been startled to hear what the Chief Secretary said a moment ago. If it is not the case that the Government do not expect anybody to live on retirement pension alone, why do not the Government raise the retirement pension to a level at which people can be expected to live?
§ Mr. JenkinWe have raised the retirement pension more in our two and a half years of office than the previous Labour Government did in the whole of their six years.