§ John BarrettTo ask the Chancellor of the Exchequer what steps the Government are taking to reduce the tax burden on old age pensioners. [9655]
§ Mr. Andrew SmithFollowing our personal tax and benefit changes, pensioner households will be £600 a year better off on average compared to 1997. As a result of our policies, seven out of 10 pensioners pay either no tax, or pay tax only at the 10p rate. We have pledged to extend tax allowances further so that by 2003 no pensioner pays tax until their income reaches £127 per week.