HC Deb 28 January 1976 vol 904 c255W
Mr. Dodsworth

asked the Secretary of State for Social Services how many people are currently obtaining invalidity benefit; and what estimate she can give of the financial effects of changing the taxation regulations for those over the age of 70 years to enable the benefit to be exempt from tax.

Mr. Alfred Morris

About 450,000. When an invalidity pensioner reaches 70–65 for a woman—invalidity pension, which is tax free, is replaced by retirement pension, which is taxable. If the law were changed so that invalidity benefit, if still in payment at 70/65, were paid for life, the loss of income tax at present rates of benefit and tax could, on some necessarily fairly arbitrary assumptions, rise to a maximum of about £20 million a year.