§ Mr. BurstowTo ask the Chancellor of the Exchequer, pursuant to his answer of 24 March 1999,Official Report, column 256, concerning the 10 pence tax rate, what factors he took into account when deciding not to extend the 10 pence rate to the savings income of people of pensionable age. [79268]
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§ Mrs. Roche[holding answer 29 March 1999]: Most savers continue to enjoy the benefit of the lower rate of 20p on their savings which are already treated favourably and the introduction of the individual savings account means that all savers—including pensioners—can invest substantial amounts tax-free. The new Pensioner Bonds announced in the Budget offer pensioners the security of a guaranteed income but with greater flexibility by giving them greater access to their savings and formed part of a wider package for pensioners worth £1 billion.
§ Mr. BurstowTo ask the Chancellor of the Exchequer, pursuant to his answer of 24 March 1999,Official Report, column 256, concerning the 10p tax rate, what estimate he has made of the cost of applying the 10p rate to the savings income of people of pensionable age; and how many people would benefit. [79269]
§ Dawn Primarolo[holding answer 29 March 1999]: Pensioners benefited from a package worth £1 billion a year in the Budget, including measures like the minimum income guarantee, winter fuel allowance and the minimum tax guarantee. It is estimated that if the 10p rate applied to savings income about 950,000 people of pensionable age would be affected, at a cost of around £55 million.