§ Mr. Stephen O'BrienTo ask the Chancellor of the Exchequer what estimate he has made of the impact of the introduction of VAT exemptions for welfare services provided by state-regulated private welfare agencies on(a) the costs, (b) the revenue and (c) the profitability of such agencies. [102126]
§ John HealeyAs a result of these changes, the 60,000 sick, elderly or disabled people who pay for home care services could see a reduction in costs of up to 13 per cent. No specific estimate has been made for the impact on state-regulated private welfare agencies. The impact of the changes on their revenue and profitability will depend upon the price charged for their services. In setting their prices, agencies will take a range of commercial factors into account, of which the exemption for welfare services is only one.