HC Deb 07 July 1977 vol 934 cc639-40W
Mr. Ralph Howell

asked the Chancellor of the Exchequer, further to his reply to the hon. Member for Norfolk, North, Official Report, 2nd May 1977, column 77, if he will explain why his latest estimate of the cost of exempting short-term national insurance benefits from liability to tax is only £10 million higher than in his previous reply to the hon. Member, Official Report, 17th March 1976, column 541, despite the increase in taxation and in unemployment since that date.

Mr. Robert Sheldon

Estimates of potential revenue yield for 1976–77 based on expenditure on short-term benefits in Great Britain calculated at benefit rates that applied during the year are as previously given to the hon. Member, as follows:

£ million
Unemployment benefit 180
Sickness benefit 160
Industrial injury benefit 15
Maternity allowance and maternity grant 20

These exceed by £35 million the estimate of the yield from unemployment benefit for 1975–76 calculated at November 1975 rates of benefit which was given in reply to the hon. Member on 17th March 1976, c. 541, and to the hon. Member for Blaby (Mr. Lawson) on 16th November 1976, c. 510, as follows:

£ million
Unemployment benefit 160
Sickness benefit 150
Industrial injury benefit 15
Maternity benefit (including maternity grant) 15