HC Deb 17 June 1947 vol 438 c197W
60. Mr. McKay

asked the Chancellor of the Exchequer if he is aware that there is dissatisfaction about the method of calculating the unearned income of old age pensioners, non-contributory, that, after ignoring £25, it is assumed there is an income of 5 per cent. on the rest of the capital up to £375, and above this a return of 10 per cent.; and as this is beyond the actual income in the majority of cases, if he will consider amending this arrangement so that the result is more favourable to the aged people.

Mr. Dalton

I would refer my hon. Friend to my reply on 24th January to the hon. and learned Member for Chester (Mr. Nield) Ten per cent represents the approximate annual yield of capital applied to the purchase of an annuity at the age of 70.