HC Deb 26 June 1967 vol 749 cc63-4
16. Mr. Christopher Price

asked the Minister of Social Security what proposals she has for the implementation of Government policy for the Income Tax in reverse method of paying social benefits.

Miss Herbison

None, Sir. While Income Tax in reverse may in the long term prove useful in relation to some areas of administration where various kinds of means test are needed, there is no possibility of its being adopted in the near future.

Mr. Price

Is my right hon. Friend aware that many of her hon. Friends were very pleased to see a reference to this method in the speech of the Minister without Portfolio the other day? Is it not about time now that her Ministry, which is doing so much for the Treasury in collecting and repaying S.E.T., urged the Treasury to show a little reciprocation in getting this scheme on to the stocks as soon as possible?

Miss Herbison

I assure by hon. Friend that I have sympathy with what he has suggested, provided he is not suggesting that all benefits from my Department should work through Income Tax in reverse. For other benefits, school meals, rent rebates and so on, the most dignified way of doing it would be by Income Tax in reverse, but I warn my hon. Friend that that will take some time because it cannot be done until the Inland Revenue is computerised.

Mr. Dean

Will the right hon. Lady agree that there is a fundamental difference between taking a little less of what people have earned and granting them a cash benefit?

Miss Herbison

I should have to look very carefully at that question to find where justice lies.