asked the Chancellor of the Exchequer if he will seek to exempt retirement pensioners from the payment of Income Tax on State retirement pensions; and if he will make a statement.

No, Sir. I do not think this would be right.

Does not the Chief Secretary appreciate that although a tax allowance in respect of insurance contributions is given when a person is earning, nevertheless when the pension is paid the recipient is in a less good position to pay tax than when he was earning, and would he please look at the tax charge which arises on State retirement pensions?

The simple position is that National Insurance pensions are regular income, and therefore I should have thought that the hon. Gentleman would have agreed with me that they are properly included in income for Income Tax purposes.