§ 2.57 p.m.
§ Lord Rodney asked Her Majesty's Government:
§ What are the benefits for pensioners from the introduction of independent taxation.
The Paymaster General (The Earl of Caithness)My Lords, of those elderly married couples who pay income tax, some 80 per cent. should be better off as a result of independent taxation.
§ Lord RodneyMy Lords, I thank my noble friend for that Answer. I am sure that many noble Lords will welcome it, myself included. Can he say approximately how many pensioners will benefit from the introduction of independent taxation?
The Earl of CaithnessMy Lords, nearly all the 1 million elderly married couples who gain from independent taxation will have some investment income. For those couples the introduction of independent taxation will provide a welcome benefit. Many will also be helped by the abolition from next year of composite rate tax.
Lord Bruce of DoningtonMy Lords, will the Minister tell the House how many old-age pensioners have no income apart from the state pension and say what benefit they will receive in the future?
The Earl of CaithnessMy Lords, I shall need to study the noble Lord's question with care. If I do not give a full reply perhaps I may write to him. The gain from independent taxation will affect 3¾ million individuals, 3 million wives, 1 million elderly married couples, 190,000 breadwinner wives and 728 40,000 men married to older women. Those about whom the noble Lord was concerned will also benefit from the abolition of composite rate tax.
§ Lord Harmar-NichollsMy Lords, can my noble friend give the number of those who will be worse off, even as regards those described in the last question? Is it a case of some are better off, none is worse off, and is that not an advantage?
Lord Bruce of DoningtonMy Lords, will the Minister please reply to the question that I addressed to him? How many old-age pensioners who have no income apart from their state pension will benefit? When do the Government propose to index those pensions as they originally promised?
The Earl of CaithnessMy Lords, the second part of the noble Lord's question does not directly relate to the main Question. But I understand that there are some 3 million pensioner couples and that 1.25 million pay income tax.
§ Lord MellishMy Lords, so that we have it right, will the Minister accept that some Members on this side of the House are delighted by what was said?
The Earl of CaithnessMy Lords, I am grateful to the noble Lord, as I am sure are many of your Lordships.