HC Deb 23 May 1980 vol 985 cc468-9W
Mr. Michael Brown

asked the Chancellor of the Exchequer what would be the estimated extra revenue for 1980–81 if the following benefits were treated as earned income for tax purposes: unemployment benefit, sickness benefit, maternity allowance, industrial injury benefit, invalidity pensions and allowances and supplementary benefit for the unemployed.

Mr. Peter Rees

In general, the potential tax on benefits can be estimated only approximately. The figures which are asterisked are particularly tentative.

Benefit (including earnings related supplement if payable) and extra revenue in 1980–81 if taxed in that year
£ million
Unemployment benefit 200
Sickness benefit 220
Maternity allowance 25*
Industrial injury benefit 20*
Invalidity pensions and allowances 80*
Supplementary benefit for unemployment 80*

The figures are on the basis that child dependency additions are not taxed; the sums which would be obtained if they were taxed are relatively small.