Pensioner Incomes (Hansard, 16 December 1999)

§ 19. Dr. Naysmith
To ask the Chancellor of the Exchequer what effect the recently announced reduced rate of tax on savings will have on pensioner incomes in the south-west; and if he will make a statement. [101783]

§ Miss Melanie Johnson
Approximately 170,000 pensioners in the South West will benefit, by an average of about £70 a year, from the extension of the 10p starting rate of tax to savings income.

§ 21. Mr. Quinn
To ask the Chancellor of the Exchequer if he will make a statement on the effect of the reduced rate of tax on savings announced in the Pre-Budget report on pensioner incomes in Yorkshire and the Humber. [101785]

§ Miss Melanie Johnson
Approximately 120,000 pensioners in Yorkshire and the Humber will benefit, by an average of about £70 a year, from the extension of the 10p starting rate of tax to savings income.

§ 30. Mr. Love
To ask the Chancellor of the Exchequer what estimate he has made of the impact of the reduction in tax on savings on pensioner incomes in London. [101795]

§ Miss Melanie Johnson
Approximately 130,000 pensioners in London will benefit, by an average of about £60 a year, from the extension of the 10p starting rate of tax to savings income.

§ 34. Mrs. Brinton
To ask the Chancellor of the Exchequer what assessment he has made of the impact of his economic policies on pensioner poverty. [101799]

§ 36. Mr. Patrick Hall
To ask the Chancellor of the Exchequer what assessment he has made of the impact of the Government's economic policies on relieving pensioner poverty. [101801]

§ Miss Melanie Johnson
The Government have introduced a series of measures to combat pensioner poverty:
The Minimum Income Guarantee for the poorest pensioners, which was introduced in April 1999, will be uprated by earnings over time and as resources allow. The Government have already pledged to uprate the Minimum Income Guarantee by earnings every year until the end of this Parliament. This will benefit the 1.6 million MIG recipients. The effect of earnings uprating is that, from April 2000, for a younger single pensioner, the MIG will be almost £500 per year higher than it was in April 1997. For a pensioner couple, the MIG will be £800 higher.
296W
The Winter Allowance—introduced by this Government in 1998 and increased to £100 for every pensioner household from winter 1999—is a major part of the Government's strategy to combat fuel poverty, along with the cut in the rate of VAT on fuel from 8 per cent. to 5 per cent.
Free TV licences for pensioners aged 75 and over will be introduced from autumn 2000. This measure is an important income boost for some of the poorest pensioner households.
On taxation, this Government have introduced the 10p and 22p tax bands, increased personal allowances for pensioners and ensured that the lop rate applies to savings income. These changes benefit pensioners particularly and mean that two thirds of pensioners now pay no income tax at all.
Taken together, the average pensioner household will be £300 per year better off as a result of these measures. In addition, the Government's success in delivering low inflation is particularly important for pensioners who may be relying on savings for their income.