§ Mr. Trotterasked the Chancellor of the Exchequer whether he will introduce legislation to free from income tax the State old-age pension.
§ Dr. GilbertI have noted the hon. Member's suggestion, but my right hon. Friend does not think it would be justifiable to relieve from tax all national insurance retirement pensions regardless of the size of the pensioners' income.
The pension is a form of income and it is right that it should be taken into account together with any other income a pensioner may have in determining the amount of tax he is required to pay. If this were not done the greatest benefit would go to those pensioners with the largest total incomes.
I would remind the hon. Member that this year's pension up-rating is the largest ever made within the national insurance retirement scheme.