HC Deb 19 December 1975 vol 902 c828W
Sir Bernard Braine

asked the Chancellor of the Exchequer why the new mobility allowance to severely handicapped people is taxable while the attendance allowance is not.

Mr. Robert Sheldon

Both are forms of income, but the two allowances are payable in rather different circumstances. Attendance allowance is payable to severely disabled people who need a substantial amount of personal attention and who are unlikely in general to be able to undertake paid employment. The allowance can sometimes be paid for quite short periods. Mobility allowance, on the other hand, is payable on a long-term basis to disabled people below pensionable age many of whom are likely to be in work. It has been made taxable so that it will give the greatest benefit to those with the smallest incomes who pay the least tax.

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