§ Miss Richardsonasked the Chancellor of the Exchequer if, under the plans to tax short-term benefits, supplementary benefit will, in any circumstances, be treated as taxable income; and, if so, in what circumstances.
§ Mr. Peter Rees[Pursuant to the reply, 14 April 1980]: The details of these proposals, which will not take effect before 1982, are under consideration. But, as my right hon. and learned Friend said in his Budget Statement, it is intended to bring into tax benefits paid to the unemployed in such a way that in general the claimant will neither receive refunds nor suffer deductions of tax until return to work. These benefits include supplementary benefit paid in lieu of or in addition to unemployment benefit, but child increases, housing costs and exceptional circumstances additions paid with supplementary benefit will not be treated as taxable income.