HC Deb 11 March 1982 vol 19 cc961-2
12. Mr. Durant

asked the Chancellor of the Exchequer whether he has any plans to meet representatives of the National Association of Widows to discuss the tax position of widows.

Mr. Bruce-Gardyne

We have not received a request for a meeting with the National Association of Widows this year, but if one is made one of my hon. Friends or I will be glad to see it.

Mr. Durant

Is my hon. Friend aware that the National Association of Widows was disappointed that the Chancellor in his Budget Statement did not mention the uprating of widows' allowance? Working widows are still concerned that although this allowance has been uprated and followed by the personal allowances, taxes will still claw back some of the money. Is my hon. Friend aware that they are worried that they will not be any better off?

Mr. Bruce-Gardyne

I hate to say it to my hon. Friend, but he is being a little ungenerous. The Budget provided full price protection of widows' pensions, and also a tax threshold increase for widows of 14 per cent., which is bigger than the pension increase. As a result, fewer widows will now pay tax than in 1981–82. Those who pay tax will have a lower tax burden, and widows over 65 can have over £9 a week in addition to pension, before they are liable for tax, as a result of the age allowance increase. Those are not insignificant benefits.

Mr. Cook

Will the Economic Secretary confirm that, for the second year running, the basic pension for a widow aged under 65 will, in the next financial year, carry her over the tax threshold? Does he appreciate that that has occurred only since the Government came to office? When can we look forward to the time when the Government will remove such women from tax altogether?

Mr. Bruce-Gardyne

I cannot confirm that, because it is not accurate. My understanding is that the widow's single allowance plus the £100 assessing tolerance—

Mr. Cook

Ah, Yes.

Mr. Bruce-Gardyne

I do not see why we should not take account of the £100 assessing tolerance, because it actually applies. It means that women with earnings-related additions to State pension will not have to pay tax on them unless the additions are more than £64 a week, which is well above the average additions to the State pension.