§ Mr. Matthew TaylorTo ask the Chancellor of the Exchequer what estimate he has made of the impact of changes in(a) indirect taxation, (b) direct taxation and (c) benefits since May 1997 on the real-terms incomes of an average pensioner household; and if he will indicate the method he used in making this calculation. [111169]
§ Mr. TimmsThe Government have introduced a package of measures to provide support that is decent and fair and ensures that even the least well off pensioners can share in the increasing prosperity of the nation.
As a result of the measures announced by the Government, pensioner households will be, on average, £300 a year better off.
The Minimum Income Guarantee for pensioners was introduced in April 1999. The Government are committed to increase the MIG in line with earnings throughout the remainder of this Parliament;The five-fold increase in the Winter Fuel Allowance for pensioners means that pensioner households will receive a payment of £100 every winter;Under the Minimum Tax Guarantee, the age related personal allowances were increased by £200 more than statutory indexation in April 1999, thereby lifting 200,000 pensioners out of tax. Pensioners aged 65 or over now have to have an income of at least £110 a week before they pay any income tax;The extension of the lop rate of income tax to savings income will benefit 1.5 million pensioners;Free television licences for pensioners aged 75 and over will be introduced in autumn 2000 and will benefit over three million pensioner households.