§ Mr. RookerTo ask the Chancellor of the Exchequer, pursuant to his answer of 17 January,Official Report, column 356, what is his estimate of the numbers of additional income tax payers aged over 65 years in 1994–95, over the figures for 1992–93, as a result of freezing the rate of age-related personal allowances in two years; and how much extra income tax will be raised as a result.
§ Mr. Dorrell[holding answer 14 February 1994]: Compared with indexing the 1992–93 personal allowance for those aged 65 or over to 1994–95 levels by reference to the statutory formula, the revenue yield from leaving this allowance unchanged in the last two Budgets is £140 million and about 160,000 more people will pay tax. If account is also taken of the effect of changes in the level of the married couple's allowance for those aged 65 or over, then about 140,000 more people will pay tax than would do so under statutory indexation of all allowances. However, 200,000 elderly couples on low incomes gain as a result of increasing the age-related MCA. Since 1979, pensioners' average income has increased by 42 per cent. 669W By April 1994, pensioners in receipt of income support will have seen their incomes rise by at least 11 per cent. since April 1992.