§ Mr. Dewar
To ask the Chancellor of the Exchequer (1) what is his best estimate of the number of recipients of invalidity benefit who would have an increased tax bill if invalidity benefit was taxed as income; and what would be the average increase;
(2) what is his best estimate of the number of recipients of invalidity benefit who would pay tax whose only income was invalidity benefit if that benefit was taxed as income; and what the average tax bill would be for that group;
(3) what is his best estimate of the yield to the Treasury in a full year of taxing invalidity benefit as income.
§ Mr. Dorrell
Approximate estimates are that the yield at 1993–94 levels, from making invalidity benefit taxable would be about £500 million.
The estimated number of recipients who would have an income tax liability and the average increase in tax is shown in the table:
Number of taxpayers with invalidity benefit liable to tax Average increase in tax with invalidity benefit liable to tax (£ a year) All recipients of invalidity benefit 1900,000 550 Invalidity benefit recipients with no other income 200,000 100 1 Of which some 250,000 already have an income tax liability.