HC Deb 05 April 2000 vol 347 c491W
Mr. Loughton

To ask the Chancellor of the Exchequer what assessment he has made of the impact on people who will be of pensionable age in the next five years of the ending of the married persons tax allowance. [115896]

Dawn Primarolo

[holding answer 3 April 2000]: The Government will be spending an additional £6.5 billion on pensioners over the course of this Parliament.

Pensioners who are taxpayers can benefit from the 10p starting rate of income tax on pensions and savings income and from the cut in the basic rate to 22p in the pound from April. Those aged 65 or more saw the age-related income tax personal allowances for 1999–2000 rise by up to £200 more than required by statutory indexation. In 2000–01, the allowances will rise to £5,790 for someone aged 65 to 74 and to £6,050 for someone aged 75 or more.

The majority of pensioners have no income tax to pay. All households with someone aged 60 or more will benefit from the increase in the winter fuel allowance to £150, an increase of £50 on the fivefold increase to £100 announced in the Chancellor's 1999 Budget. The poorest pensioners will gain from the minimum income guarantee which will stand at £121.95 per week for a pensioner couple under 75. Pensioners aged 75 or more will also benefit from free Television Licences from this autumn.