§ Mr. Carter-Jones
asked the Secretary of State for Social Services what representations he has received from the Royal College of Nursing regarding the improvement of the level of attendance allowance and tax arrangements for disabled people; and if he will make a statement.
§ Mr. Prentice
The Preston centre of the Royal College of Nursing has written to me. It seeks an increase in the rate of attendance allowance to enable relatives to remain at home to provide the attendance needed and a reduction in taxation on investment income for severely disabled people.
Attendance allowance is a tax-free benefit for those so severely disabled that they need attendance from someone else. It is not intended to meet any financial loss incurred by a relative who remains at home to provide the attention needed: that is the purpose of the invalid care allowance. Both these benefits will be going up later this month as part of a 381W general uprating of social security benefits, and both are subject to annual review. Taxation of investment and other income is a matter for my right hon. and learned Friend the Chancellor of the Exchequer, to whom I have passed a copy of the representations.