Age-Related Allowances

HC Deb 24 March 2004 vol 419 cc841-2W

Mr. Todd

To ask the Chancellor of the Exchequer if he will(a) raise the figure below which pensioners may retain the full benefit of age-related allowances and (b) reduce the effect of the taper above that figure. [163342]

Ruth Kelly

The purpose of the age-related allowances is to give extra help to those aged 65 and over who have to rely on relatively modest incomes. They are therefore subject to an income limit, which is reviewed as part of the Budget process. The Government have no plans to alter the rate of the taper where income exceeds the limit.

Age-related personal allowances will increase in line with earnings rather than prices in April 2004 and will continue to do so for the remainder of this Parliament.