§ 12. Helen Jackson (Sheffield, Hillsborough)What plans he has to review the taxation liabilities of pensioners. [72424]
§ The Economic Secretary to the Treasury (Ms Patricia Hewitt)The Government have announced a £2.5 billion package of support for pensioners. That will include a minimum tax guarantee, so that no elderly person will pay income tax unless his or her income rises 1210 above a specified level. As the pre-Budget report confirmed, my right hon. Friend the Chancellor might have more to say on that in next week's Budget.
§ Helen JacksonI thank my hon. Friend for her reply and look forward to the Budget statement next week. Does she recognise that, although falling interest rates are excellent for manufacturing, mortgage payers and many others, they result in a drop in income for pensioners above the benefit level who depend partly on interest from their savings? Does she recognise the importance of what they have gained from the reductions in VAT on fuel and what they stand to gain from the free eye tests that will be introduced in April? Does she also accept that plans to enable that worthy group to benefit further from a Labour Government should be a priority?
§ Ms HewittMy hon. Friend is right to draw the attention of the House to the many measures that the Government have introduced to help elderly people. I am sure that she agrees that one of the greatest threats to the living standards of elderly people is inflation rates at the levels that we had during the boom and bust years of the Conservative Government. Low inflation is good for elderly people, but, to help them further with their savings, we are introducing the new individual savings accounts from April.