HC Deb 03 June 1980 vol 985 cc649-50W
Mr. Field

asked the Chancellor of the Exchequer if he will amend the answer given to the hon. Member for Birkenhead on 12 February, on raising benefits, listing those social security benefits which will (a) remain untaxable, (b) be abated by 5 per cent. from November and (c) be taxed as soon as the machinery exists for so doing.

Mr. Peter Rees

[pursuant to his reply, 20 May 1980 c. 133]: The following are the benefits which it is proposed should be increased in November 1980 by five percentage points less than the percentage which would fully reflect forecast price movements: Unemployment benefit Sickness benefit Maternity allowance Invalidity pension Injury benefit Unemployability supplement Unemployment benefit and sickness benefit paid to those over retirement age An increase for adult dependants paid with the above benefits Invalidity allowance when paid with invalidity pension, and the equivalent increase paid with unemployability supplement.

The legislation foreshadowed in my right hon. and learned Friend's Budget Statement to bring certain social security benefits into tax will not be introduced before the Finance Bill 1981. Its precise scope is not yet determined, but the general intention is that the benefits listed above should be brought into tax.