HC Deb 21 March 1974 vol 870 cc1316-7
26. Mr. Spriggs

asked the Chancellor of the Exchequer what steps he proposes to take to protect pensioners, the sick, disabled, the unemployed, and other low-level income groups against the direct effect of income tax and inflation.

Dr. Gilbert

As my right hon. Friend the Secretary of State for Social Services made clear in the debate on the Address, pensions and related benefits are to be uprated. My hon. Friend will understand that I cannot say more in advance of my right hon. Friend's Budget Statement.

Mr. Spriggs

I thank my hon. Friend for that assurance. Will he give further consideration to points raised in the General Election campaign, when the Labour Party gave an assurance to the nation about increased pensions and related benefits when the Chancellor brought his proposals before the House?

Dr. Gilbert

My hon. Friend can be certain that my right hon. Friend is fully aware of what we said in our election campaign. Our pledges will be honoured; many of them already have been.

Mr. Warren

Will the hon. Gentleman consider the need to remove the earnings rule for pensioners, which will be a direct help to them in this context? Furthermore, will he consider the need to raise the limits at which pensioners incur taxation?

Dr. Gilbert

If the hon. Gentleman had taken the trouble to be present during the whole of Question Time he would have heard the answer to that already.

Mr. Wellbeloved

Will my hon. Friend bear in mind the desire of all on the Government side of the House to protect low-income groups, and that we expect to see in the Finance Bill this year proposals to make food exempt from VAT rather than zero-rated?

Dr. Gilbert

I cannot comment in advance on my right hon. Friend's Budget Statement.

Mr. Ridsdale

We welcome proposals to increase pensions, but will the Chancellor look particularly at proposals for rate relief? The proposals that have been made will hit pensioners considerably, especially in rural areas.

Dr. Gilbert

My right hon. Friend takes account of the economic circumstances of pensioners in framing his Budget Statement.