§ Mr. Hannamasked the Secretary of State for Social Services if he is aware of the dissatisfaction among disabled people at the different net incomes which can arise from similar gross incomes depending upon whether they consist of untaxed invalidity benefit, earnings or unearned income; and, notwithstanding his reply to the hon. Member for Exeter on 30th November, if he is able to provide statistics quantifying these differences according to size of family and level of income.
§ Mr. OrmeI am aware, as are my ministerial colleagues who are responsible for tax matters, that tax and contribution liability on earnings, together with the substantial improvements, which have in themselves been generally welcomed, that we have made in the range of untaxed benefits, have to som extent narrowed the gap between benefit and earnings and, in a very small number of cases, put the beneficiary ahead of the earner. We are also aware that liability to pay tax on, for example, mobility allowance can depend on whether other income is taxable and not just the amount of other382W income. I am afraid however that no statistics on these matters are available which would help the hon. Member. Theoretical alternatives to the present situation present very considrable problems of administrative cost, or have other substantial public expenditure implications.