HC Deb 25 April 1988 vol 132 c25W
Ms. Short

To ask the Secretary of State for Employment (1) whether the proposed bonus payment to be paid at the end of an adult training scheme placement will affect benefit entitlement or tax liability;

(2) who is to be responsible for funding the proposed bonus payment to be paid at the end of a placement on the adult training scheme;

(3) what is the proposed minimum and maximum level for the proposed bonus payment to be paid at the end of a placement on the adult training scheme;

(4) if the proposed bonus payment for participants leaving the adult training scheme will be available on all different elements of the programmes;

(5) if the proposed bonus payment for those leaving the adult training scheme will be paid to all leavers no matter how long they spend on the scheme.

Mr. Nicholls

Training managers or providers of practical training placements in the new programme, employment training, may, if they wish and from their own resources, give participants a bonus on completion of their training or any part of their training. The amount and terms of any such payments will be entirely at the discretion of the training manager or provider. Where such a bonus relates exclusively to the completion of part or all of the training programme it will not be liable to income tax. Provided that the bonus is no more than £250 and the recipient has not received any other ad hoc payments in the same 52-week period, it will not be treated as income but as capital for the purposes of assessing entitlement to income support and housing benefit.

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