§ Mr. Teddy Taylorasked the Chancellor of the Exchequer how many persons have received the notice from the Inland Revenue indicating that the amount of tax deducted from their public service pension payments after 5th April will be increased even although their personal circumstances have not changed; and why these increased deductions are being made in light of his Budget statement.
§ Mr. Robert Sheldon, pursuant to his reply [Official Report, 21st April 1978; Vol. 948, c. 385], gave the following information:
The notice was issued to about 800,000 public service pensioners. It reminds them that the increase in national insurance pensions payable from November 1977 became liable to tax only from 6th April 1978 and that, since the tax on both pensions is recovered through PAYE deductions from their public service pensions, the deductions may accordingly be increased from that date. However, these pensioners, like other taxpayers, will receive next month the benefit of the increased allowances proposed in the Budget Statement.