HC Deb 26 March 1981 vol 1 cc1067-8
10. Mr. Eastham

asked the Chancellor of the Exchequer what is the average cost of value added tax on the average funeral bill.

Mr. Lawson

I regret that precise information is not available, but the hon. Gentleman will I am sure be aware that undertakers' accounts and associated fees are exempt from value added tax.

Mr. Eastham

I thank the Minister for his reply. Does he realise that when the Conservative Government doubled the rate of VAT they added a considerable burden to those who have to meet funeral expenses? The death grant is only £30. When will the Minister review the grant and introduce the realistic sum of £167?

Mr. Lawson

The hon. Gentleman will be aware that the death grant is a matter for my right hon. Friend the Secretary of State for Social Services.

Mr. James A. Dunn

Is the right hon. Gentleman aware that the supplementary question of my hon. Friend the Member for Manchester, Blackley (Mr. Eastham) related to value added tax? What portion of VAT could be lifted from the shoulders of those in the lower income groups, including pensioners?

Mr. Lawson

I do not understand how the hon. Gentleman's supplementary question arises directly from the main question. As I said to the hon. Member for Manchester, Blackley (Mr. Eastham), there is already considerable relief in respect of undertakers' accounts and associated fees.