§ Mr. Frank FieldTo ask the Chancellor of the Exchequer if he will estimate the savings for each of the next five financial years if(a) the additional value of tax allowances for (i) single and (ii) married pensioners was frozen at the current rate and (b) the allowance was frozen and remained in force only for current pensioners. [15196]
§ Mr. JackAn indication of the effects of reducing the additional value of age-related personal allowances and of denying age-related allowances to those who are currently aged below 65 is given in the table. The figures are set at 1996–97 levels and, as an illustrative assumption, the increases in the retail prices index is taken to be 2¼ per cent. for the first year and 2 per cent. in subsequent years. The full-year cost of the age-related component of personal allowances is estimated to be about £960 million at 1996–97 income levels.
542W
Estimated full year yields (£ million) Year after the change Age allowance frozen at current rate Age allowance frozen and available only for those aged over 65 in year 0 1 70 140 2 140 260 3 200 380 4 260 500 5 330 620