§ Mr. Rhodri MorganTo ask the Secretary of State for Social Security when the review being undertaken by officials concerning the treatment of income from personal loan repayment protection insurance cover for those claiming jobseeker's allowance will be completed; and if she will make a statement. [37824]
§ Mr. Keith BradleyOfficials have completed their review and, as announced in the Green Paper "New Ambition For Our Country—A New Contract for Welfare", we will be laying regulations, subject to statutory consultation, to introduce a disregard of these payments, provided they are used for their intended purpose. Draft regulations have been sent to the Social Security Advisory Committee and Local Government Associations for consultation.
§ Mr. Rhodri MorganTo ask the Secretary of State for Social Security when the practice of treating payments from personal loan repayment protection insurance policies as income for the purposes of calculating jobseeker's allowance payments commenced; what treatment will be given to any lump sum payments made by lenders and insurers to individuals whose jobseeker's allowance has been reduced with regard to benefits disregards and personal taxation; and if she will make a statement. [37825]
§ Mr. Keith BradleyThe regulations under which payments from personal loan repayment protection policies are treated as income for the purpose of calculating income-based Jobseeker's Allowance (JSA) unless paid direct to the creditor, have been in place since JSA was introduced in October 1996. These rules were based on equivalent rules which have applied to other income-related benefits for many years.
Representatives of the insurance and banking industries held discussions with officials in this Department to ensure that any additional payments made to individuals 137W whose benefit had been affected by these insurance payments would be made in such a way that they would not affect benefit entitlement.
Personal taxation is a matter for my right hon. Friend the Chancellor of the Exchequer.