Oral Answers to Questions

Nick Smith Excerpts

Tuesday 24th April 2012 Commons Chamber

[Mr Osborne]

I am glad the hon. Gentleman reminds us that the previous Government bailed out the banks with no conditions attached, and we are having to pick up the mess. We want to help small business lending by using the Government’s balance sheet and the low interest rates we have earned with a credible deficit plan. We intend to increase competition in the high street: we sent Northern Rock back into the private sector with Virgin Money, a decision that was welcomed in the north-east of England, but opposed by the shadow Chancellor. We are taking the steps necessary, but yes, we are dealing with one enormous mess left to us by Labour.

[Nick Smith (Blaenau Gwent) (Lab)]

5. What assessment he has made of the effect on pensioners of the proposed changes to age-related income tax allowances.

[The Exchequer Secretary to the Treasury (Mr David Gauke)]

No one will pay more tax in 2013-14 than they do today as a result of the changes. There are no cash losers. The Government remain absolutely committed to supporting pensioners. We have introduced a triple guarantee for the basic state pension, ensuring that it will increase each and every year by the highest of earnings, prices or 2.5%. We have also protected other benefits that make a real difference to the lives of millions of pensioners.

[Nick Smith]

What does the Minister have to say to those who are turning 65 in just under a year’s time? They are set to be more than £25 a month worse off than they thought they would be, but they have no time to plan for that change.

[Mr Gauke]

Those who turn 65 next year will benefit from the biggest increase in the personal allowance that we have ever seen.