§ Mr. Meacherasked the Chancellor of the Exchequer, what would be the net cost to the Exchequer, after consequential savings in supplementary benefits, of making unemployment and sickness pay taxable income and at the same time increasing the rates of pay by 44 per cent.
§ Mr. Nott,pursuant to his reply [OFFICIAL REPORT, 22nd March 1973, Vol. 853, c. 158], gave the following information:
205WOn the assumption that the increase in rates applied only to flat rate unemployment and sickness benefit, there would be no net cost to the Exchequer.
§ Mr. Meacherasked the Chancellor of the Exchequer, what would be the net cost, after saving in supplementary benefits, of increasing retirement pensions to the supplementary benefit levels and making them taxable as investment income for taxpayers above the age exemption limit.
§ Mr. Nott,pursuant to his reply [OFFICIAL REPORT, 22nd March 1973, Vol. 853, c. 158], gave the following information:
If the hon. Member has in mind the payment of standard flat rate pension at the supplementary benefit scale rates plus long term addition, the net cost before tax would be about £80 million for 1972–73. I do not follow the second part of the hon. Member's Question. Perhaps he will write to me.