§ Mr. Allen McKay
asked the Chancellor of the Exchequer, pursuant to the answer to the hon. Member for Oldham, West (Mr. Meacher) on 8 March, Official Report, c. 307, concerning the taxation of unemployment benefit and supplementary benefit (a) how many persons will be currently affected, and (b) what is the estimated total cost other than staff costs.
§ Mr. Ridley
[pursuant to his reply, 19 March 1982, c. 224]: It is estimated that, as a result of bringing into tax benefits paid to the unemployed, in a full year about 4½ million people will pay more income tax on their pay or other sources of income during the year than they would otherwise have done. Staff costs excluded, the setting up and first year costs are estimated at about £5.25 million and the annual costs thereafter at about £750,000.