§ 60. Mr. A. Lewisasked the Chancellor of the Exchequer by how much the standard Income Tax would have to be increased to cover the cost of an additional increase to all old age pensioners of 8s. per week as from the first week in June, 1951.
§ Mr. JayThe standard rate of Income Tax would have to be raised by 8d. withpro rata changes in the other rates, to cover the cost of such an increase in contributory and non-contributory old age and retirement pensions in the first full year, with present number of pensioners. The cost of the increase in pensions would rise by about 50 per cent. in the next 25 years, but it is not possible to foresee with any accuracy what increase in Income Tax would be necessary to meet this.