§ Miss Richardson
asked the Chancellor of the Exchequer what is his most recent estimate of the extra revenue that will be raised as a result of the proposal to make benefits for the unemployed and those involved in a trade dispute taxable; and how many claimants (a) who are unemployed and (b) who are involved in trade disputes this estimate assumes will be affected.
§ Mr. Peter Rees
The proposals will not have effect until 1982–83 but at 1981–82 unemployment, benefit and income levels the yield would be about £370 million. This figure is based on an average number of unemployed of 2.6 million—excluding school leavers, and so on—consistent with the assumptions in the public expenditure White Paper, Cmnd 8175. Not all of these would in fact have a tax liability. The contribution from tax on benefits paid to dependants of those involved in trade disputes will be small and the overall estimate does not depend critically on the numbers involved.