19. Mr. William O'BrienTo ask the Chancellor of the Exchequer what assessment he has made of the effect of his recent tax proposals on retired people who have savings over £3,000; and if he will make a statement.
§ Mr. Kenneth ClarkeThe increase in the personal income tax allowance for the aged announced in the Budget is worth over £2 a week for most basic rate paying pensioners. This is on top of a rise in pensioners' real income after tax averaging about 50 per cent. between 1979 and 1992.