§ 26. Mr. Ralph Howellasked the Chancellor of the Exchequer in view of the fact that the weekly take-home pay of a man with a wife and three children under 11 years of age with a weekly wage of £30, whose previous year's pay had been the same, and allowing for tax repayment and welfare benefits due, is £27.60 when in work, and £30.95 when out of work whilst in receipt of Pay As You Earn repayments, what action he intends to take to remedy this anomaly.
§ Mr. Patrick JenkinI agree this is an anomaly; but it lasts for only a limited period in any one case; it arises because short-term national insurance benefits are not within PAYE. No Government have yet found a way to tax these benefits without disproportionate staff costs.