§ 63. Mr. H. Hyndasked the Chancellor of the Exchequer whether he will consider cashing post-war credit certificates immediately at half their face value.
§ Mr. Boyd-CarpenterNo.
§ Mr. Morleyasked the Financial Secretary to the Treasury whether he is now in a position to give the information promised about the cost of extending the field of repayment of post-war credits.
§ Mr. Boyd-CarpenterYes. Tables are already included each year in the annual report of the Commissioners of Inland Revenue showing the amount of post-war credits originally created and the amounts which have already been paid.
Under existing arrangements post-war credit is being repaid at the rate of rather less than £17 million a year. The following statement shows the additional cost of extending the field of repayment. The estimates are based primarily on informamation which has been derived in the last year or so from the repayments actually made. Some of the estimates are reasonably firm but others are subject to a considerable margin of error and may require revision from time to time as further information becomes available.
(1) To lower the present age limits by five years (i.e., to 60 for men and 55 for women) would cost an additional £85 million in the first year and would increase future annual repayments from about £17 million to £17½ million.
(2) To lower the age limit by one year per annum, so that in the first year men would be repaid at 64 and women at 59, in the second year men at 63 and women at 58 and so on, would cost an additional £17½ million in the first year, £18 million in the second year, £18½ million in the third year and so on. This progressive increase in the amouit which would be repaid each year is due to the larger amounts of post-war credit in the lower age groups.
(3) To repay the whole of the outstanding credit for the first year for which postwar credits were created (1941–42) would cost an additional £107 million in the first year and would reduce future repayments to men over 65 and women over 60 from about £17 million a year to £14 million a year.
287W(4) To repay the first £10 of the postwar credit to everybody (or the total amount of the post-war credit where it is less than £10) would cost an additional £102 million in the first year and would reduce future annual repayments to £14 million.
(5) To repay the post-war credit on death (including deaths which have already occurred) would cost an additional £60 million in the first year and an additional £5½ million a year thereafter.
(6) To repay the post-war credit to widows (including widows entitled on deaths which have already occurred) would cost an additional £30 million in the first year and an additional £4 million per annum thereafter.
(7) To repay post-war credits passing on death on the date on which the deceased would have reached 65 for men and 60 for women would cost an additional £13 million for the first year and £2 million a year thereafter.