§ Mr. Michael Brownasked the Chancellor of the Exchequer what would be the estimated extra revenue for 1980–81 if the following benefits were treated as earned income for tax purposes: unemployment benefit, sickness benefit, maternity allowance, industrial injury benefit, invalidity pensions and allowances and supplementary benefit for the unemployed.
§ Mr. Peter ReesIn general, the potential tax on benefits can be estimated only approximately. The figures which are asterisked are particularly tentative.
469W
Benefit (including earnings related supplement if payable) and extra revenue in 1980–81 if taxed in that year £ million Unemployment benefit 200 Sickness benefit 220 Maternity allowance 25* Industrial injury benefit 20* Invalidity pensions and allowances 80* Supplementary benefit for unemployment 80* The figures are on the basis that child dependency additions are not taxed; the sums which would be obtained if they were taxed are relatively small.