HC Deb 13 June 1974 vol 874 cc1813-4
14. Mr. Moate

asked the Chancellor of the Exchequer what would be the approximate cost in a full year of raising the age exemption limits from the proposed £785 for a single person and £1,130 for married couples to £900 and £1,300, with corresponding marginal relief.

Dr. Gilbert

The revised age exemption limits proposed for 1974–75 are £810 for a single person and £1,170 for a married couple. The cost of increasing these to £900 and £1,300 respectively, with the consequential adjustments in marginal age exemption relief, would be about £50 million in a full year.

Mr. Moate

I recognise the value of the pension increase and the large exemption increases even since the Budget Statement but does not the Financial Secretary agree that pensioners with a small private pension over and above the State pension are particularly hard hit by rising prices? Does he not realise that big deductions from these modest incomes can cause great hardship and resentment, and does he not feel that higher priority should be given to raising the starting point on taxation for pensioners?

Dr. Gilbert

I am grateful to the hon. Member for his remarks about the increase in the national insurance pension. Of course, we all recognise that there is genuine concern on both sides of the House about the position of pensioners at all income levels. I am sure, however, that the hon. Member will agree that the greatest need is on the part of those who do not have enough income even to attract the lower rate of income tax. My right hon. Friend provided in his Budget that any elderly person who was exempt from tax before by reason of the threshold will remain exempt thereafter.

Mr. Robert Carr

If the Financial Secretary and his right hon. and hon. Friends are genuinely concerned with deeds and not merely with words concerning the problems of the retired, why are they increasing the taxation burden on such people?

Dr. Gilbert

I am sure the right hon. Gentleman will recognise that even those pensioners who are fortunate enough to have an income that would attract the investment income surcharge will not have to pay the full rate. They will get relief additional to that afforded to other taxpayers.