§ Mr. Bowdenasked the Chancellor of the Exchequer if he will estimate how many retirement pensioners will gain, and how many will lose, under the changes to mortgage repayment in April as a result of the impact on their entitlement to the age allowance; how much will be saved by the Government as a result; and what will be the average monthly loss or gain.
§ Mr. Ridley[pursuant to his reply, 21 February 1983, c. 347]: No retirement pensioners will lose entitlement to age allowance as a result of the changes in the arrangements for giving mortgage interest relief, because payments of mortgage interest will continue to be taken into account in calculating the figures on which entitlement to age allowance is based. Some retirement pensioners who at present have option mortgages will benefit because, under the new arrangements, the interest they pay will become deductible in calculating their income for the purposes of the age allowance income limit. The number of pensioners who could be affected is not known but is likely to be very small. The total cost to the Exchequer cannot be estimated. The maximum monthly benefit to retirement pensioners is £21.25 if married or £12.62 if single.