§ Ms. ShortTo ask the Secretary of State for Employment what arrangements he intends to make to ensure that participants on the adult training scheme who are paid up to £250 by their employer on leaving the scheme will not be subject to tax liability or benefit loss; and what would be the effect of an employer making a payment of more than £250.
§ Mr. NichollsMy right hon. Friend the Secretary of State recently announced that a training bonus will be payable to trainees who complete an action plan of over three months duration with an additional bonus for those who attain a vocational qualification or a credit towards one. Bonuses will be funded jointly by the Manpower Services Commission, training managers and employers until March 1991, and thereafter by contributions from employers and training managers. The maximum total payable under this scheme will be £200, and the bonus will be disregarded for the purpose of assessing entitlement to income support. As a payment relating exclusively to training undertaken it will not be liable to income tax.
§ Ms. ShortTo ask the Secretary of State for Employment what arrangements he intends to make to ensure that participants on the adult training scheme are not subject to any benefit loss or tax liability as a result of receiving £10 to £12 per week additional to their benefit.
§ Mr. NichollsParticipants in employment training will receive a training premium of £10 to £12 a week over and above their previous benefit entitlement. These payments will be disregarded for benefit purposes and will not be liable to income tax.