§ 31. Mr. Hal Millerasked the Secretary of State for Social Services what consideration has been given to making social security payments liable to tax and if she will make a statement on the poverty trap.
§ Mr. O'MalleyA number of social security benefits are already liable to tax; but I understand that my right hon. Friend the Chancellor of the Exchequer does not consider that it would be appropriate or practicable to make all benefits automatically liable to tax. As to the poverty trap, steps already taken ensure that its effects are very limited in practice.
§ 51. Mr. Peter Bottomleyasked the Secretary of State for Social Services whether she will take steps to reduce the poverty trap for low earning families.
§ Mr. O'MalleyI would refer the hon. Member to my reply to the hon. Member for Norfolk, North (Mr. Howell) on 4th November.—[Vol. 899, c.87.]