§ 2. Mr. Ashleyasked the Chancellor of the Exchequer if he will reduce the rate of tax on widows' incomes.
§ 16. Mr. Steelasked the Chancellor of the Exchequer if he will consider making widows' pensions exempt from income tax.
§ Dr. GilbertI have noted the hon. Members' suggestions.
§ Mr. AshleyIn view of the anomalous treatment of widows in relation to married women and the unique difficulties faced by widows and single-parent families, will my hon. Friend seek to persuade his right hon. Friend to increase the tax 1301 allowances for all these groups in order to remove some of the burden?
§ Dr. GilbertAgain, I have to say that I cannot anticipate what my right hon. Friend's decision will be. I am sure he will recognise that tax allowances are of most benefit to those widows and single-parent families who already pay tax. It is always our objective to help those members of the community who are not as well off even to be in that position.
§ Mr. SteelIn his consideration of this problem, will the Chancellor note that many widows have now had to return to work because of the fairly small level of widows' pensions? All parties accept that. The widows feel very badly because, having done so, they are then penalised on their entitlement.
§ Dr. GilbertWe recognise the concern which the hon. Gentleman feels in this matter. I draw his attention to what my right hon. Friend the Secretary of State for Social Services said on 15th March in the House:
Our proposals for pensioners include not only retirement pensions but widowed pensioners, and invalidity pensioners."—[OFFICIAL REPORT, 15th March 1974; Vol. 870, c. 525.]
§ Mr. RidsdaleMay I press the new Government, as I pressed the last Government, for the abolition of the earnings rule, to help such widows?
§ Dr. GilbertThat is a matter neither for my right hon. Friend nor for myself, but for my right hon. Friend the Secretary of State for Social Services.