§ Mr. Quentin DaviesTo ask the Secretary of State for Social Security what assessment he has made of the cost to public funds of merging the social security and tax systems; and if he will make a statement.
§ Mr. BurtThere are many different options for merging the social security and tax systems; for example through a basic income guarantee, tax/credits and negative income tax schemes.
We have made no assessment of the cost of detailed options, but it is clear that such schemes could be very expensive. For example, a basic income guarantee around the level of retirement pension, could easily cost in the region of £200 billion per annum and yet still be unlikely to eliminate all need for income-related benefits.