§ Mr. Ovendenasked the Chancellor of the Exchequer if he will take action to restore the level of income which widows may earn before incurring income tax to the real value of such earnings in 1969.
§ Mr. Robert SheldonMy hon. Friend will not expect me to speculate about possible changes in the level of particular tax allowances at this time of the year.
§ Mr. Ovendenasked the Chancellor of the Exchequer what would be the cost of restoring to the 1969 level in real terms the amount which widows may earn before incurring income tax.
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§ Mr. Robert SheldonTo restore in real terms the difference between the single person's tax allowance and the standard widow's pension at the levels obtaining in 1969–70 would require an increase of £190 in the present single allowance of £675. The estimated cost in 1975–76 of giving this increase to all widows under 65 including retired widows receiving national insurance retirement pensions is about £30 million.
§ Mr. Ovendenasked the Chancellor of the Exchequer (1) what was the amount of tax paid in each of the years 1969–70 to 1975–76 by a widow with one child in receipt of one-third average national earnings in addition to her pension; and what will be the amount due next year if there is no change in the present relationship between pensions and tax allowances;
(2) what was the amount of tax paid in each of the years 1969–70 to 1975–76 by a widow with two children in receipt of one-third average national earnings in addition to her pension; and what will be the amount due next year if there is no change in the present relationship between pensions and tax allowances;
(3) what was the amount of tax paid in each of the years 1969–70 to 1975–76 by a widow with no children in receipt of one-third average national earnings in addition to her pension and what will be the amount due next year if there is no change in the present relationship between pensions and tax allowances.
§ Mr. Robert SheldonThe figures for the years up to 1975–76 are as follows:
Year No children £ One child not over 11 £ Two children not over 11 £ 1969–70 29.67 — — 1970–71 26.99 — — 1971–72 43.44 — — 1972–73 17.05 — — 1973–74 45.00 1.50 — 1974–75 108.57 48.51 47.78 1975–76 191.45 117.95 142.45 Notes: The widow is assumed to qualify for a full-rate widow's pension, and where appropriate the family allowance and the widowed mother's tax allowance.
The average earnings used are those of full-time manual females aged 21 and over in manufacturing and certain other industries at October of each year up to 1974. For 1975–76 an estimate for October 1975 was obtained using the monthly index of average earnings.
262WThe figures for 1976–77 will depend on the growth of average earnings as well as on changes in pensions, tax rates and allowances.