HC Deb 21 March 1974 vol 870 cc1302-3
4. Mr. Janner

asked the Chancellor of the Exchequer whether he will propose increasing the sum which retirement pensioners can earn free of tax or reductions in their pensions.

21. Mr. Moate

asked the Chancellor of the Exchequer whether he will propose increasing the sum which retirement pensioners can earn free of tax.

Dr. Gilbert

I have noted the hon. Members' suggestions. The earnings rule is a matter for my right hon. Friend the Secretary of State for Social Services.

Mr. Janner

We recognise the hideous problems which affect the Government in their efforts to rebuild the economy, but will they nevertheless bear in mind the contribution made by retirement pensioners who go out to work, and is this not also a matter which will shortly be the concern of the Chancellor?

Dr. Gilbert

My hon. and learned Friend is perfectly right. The contribution made by retirement pensioners who stay at work is considerable. My hon. and learned Friend will be aware that there are special provisions whereby pensioners over a certain age who are in employment and whose taxable income is of a certain level receive tax relief. It is the Government's view that the best thing for us to do to help all pensioners is to raise the basic rate, and this is what we are doing.

Mr. Maurice Macmillan

I congratulate the Financial Secretary on his appointment. Since this is a matter for the Secretary of State for Social Services, why was the Question not transferred?

Dr. Gilbert

That is not a question for me either, because I am not in charge of the order of Questions. The right hon. Gentleman will have plenty of opportunity to question my right hon. Friend in these matters on a suitable occasion.

Mr. Kenneth Clarke

Is the Minister aware that many of those in retirement are concerned by suggestions that this Government might reverse the tax concessions on the lower levels of unearned income brought in by the last Government? Will he seek to persuade his right hon. Friend before next Tuesday that, in his need for revenue, he should not adversely affect the position of those in retirement living on modest savings?

Dr. Gilbert

I am sure that those in retirement like all other members of the community—and particularly hon. Members opposite—will wish to play their full part in seeing that we get a fairer society.