§ Mr. Peter Bottomleyasked the Secretary of State for Social Services for which means tested benefits tax refunds are treated as income in assessing eligibility.
§ Mr. Deakins, pursuant to his reply [Official Report, 21st December 1976; Vol. 923, c. 105], gave the following information:
The position for the main income support means-tested benefits—rent and rates rebates and rent allowances, family income supplement, free school meals, 580W free milk and vitamins and supplementary benefit—is that PAYE tax refunds are only taken into account in assessing eligibility for free school meals and, to a very limited extent, for supplementary benefit and free milk and vitamins. The general rule for supplementary benefit and free milk and vitamins is that PAYE tax refunds are regarded as part of the earned income to which they relate. Refunds in respect of past earnings which are received during a period of unemployment are regarded as income properly relating to the period when the claimant was working and are therefore not taken into account as income during the period of unemployment. An exception to this rule is made specifically for claimants who have not severed connection with an employer, for example, those who are temporarily stood off or who are on strike. In their case the PAYE refunds are taken into account at the time they are received.