§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer what is the present cost of the Christmas bonus for retirement pensioners; and what is his estimate of the saving which could be made by restricting payments to pensioners who do not pay income tax.
§ Mr. Norman LamontIn 1988–89, the cost of the Christmas bonus for retirement pensioners is estimated to be about £108 million. The saving from restricting payments of the bonus to pensioners who do not pay income tax would be about £28 million.