§ Mr. Higginsasked the Chancellor of the Exchequer by how much he estimates the full effects of the Government's proposals for increased taxation, other than increases in personal direct taxation, and higher nationalized industry prices will reduce the value of national insurance pensions of £10 and £16 for a single person and married couple, respectively.
§ Mr. DellWe have made the following estimates as at the end of 1974 of the price effects of indirect tax increases and higher nationalized industry prices on pensioners' incomes. Our estimates include the effect of increase food subsidies as announced in the Budget which are of particular importance to pensioners.
APPROXIMATE EFFECT ON PENSIONERS RETAIL PRICE INDEX BY END 1974 Per cent. Single Couple Indirect Taxes ¾ 1½ Nationalized Industry Prices 4¼ 3 Sub-Total 5 4½ Food Subsidies -3¼ -3¼ Total 1¾ 1¼
§ Mr. Higginsasked the Chancellor of the Exchequer how much of a £10 and £16 national insurance pension payable to a single person and married couple, respectively, would remain after payment of income tax at the rates applicable before and after the Chancellor's Budget Statement.
§ Dr. GilbertIf the pension specified was the pensioner's only source of income there would be no tax payable for the single or married person either for 1973–74540W or for 1974–75 because of the operation of the age exemption provisions. The amount of tax payable if income exceeds the age exemption limit depends on the pensioner's circumstances.