War Widows’ and Widowers’ Pensions
Debate between Earl of Kinnoull and Lord Harlech
Lord Harlech (Con)
I pay tribute to the noble Baroness for her campaigning on this issue. I agree that, looking at this issue through the prism of today, how it was administered seems a cruel decision. However, that was not a choice specific to this cohort of people; it was across all public service pensions. Through the Armed Forces covenant, the tireless campaigning of the association and Ministers such as my right honourable friend the Secretary of State for Defence, we have sought to grip this issue and have taken the action that we have this week.
The Earl of Kinnoull (CB)
My Lords, these Benches also have a very long association with the War Widows’ Association. My kinsman the late Baroness Strange was the president of the War Widows’ Association for 15 years from 1990. The noble Baroness, Lady Crawley, raised a very interesting point about tax. I wonder whether the Minister and the Government are going to take away with one hand what they have given with the other. Will these ex gratia payments be tax free?
Lord Harlech (Con)
The noble Earl is right to raise this. This payment has been the subject of extensive negotiations with the Treasury. Tax considerations have been taken into account when arriving at the sum, so this payment will not be tax free.