HL Deb 07 June 1993 vol 546 cc48-9WA
Lord Stoddart of Swindon

asked Her Majesty's Government:

Whether they will list those social security benefits which are taxable and those which are not together with the reasons for such categorisation.

The Minister of State, Department of Transport (The Earl of Caithness)

The following lists show which social security benefits are subject to income tax, and which are not.

  1. Taxable
    1. Income Support paid to the unemployed1
    2. Industrial Death Benefit pensions
    3. Invalid Care Allowance2
    4. Retirement Pension2
    5. Statutory Maternity Pay
    6. Statutory Sick Pay
    7. Unemployment Benefit2
    8. Widowed Mother's Allowance2
    9. Widow's Pension
  2. Not Taxable
    1. Attendance Allowance
    2. Child Benefit
    3. Child's Special Allowance
    4. Disability Living Allowance
    5. Disability Working Allowance
    6. Family Credit
    7. Guardian's Allowance
    8. Housing Benefit
    9. Income Support1
    10. Industrial Disablement Benefit
    11. Invalidity Benefit3
    12. Maternity Allowance
    13. One-parent Benefit
    14. Severe Disablement Allowance
    15. Sickness Benefit
    16. Social Fund Payments
    17. War Widow's Pension
    18. Widow's Payment

1 Income Support is taxable when paid to unemployed people who have to sign on, or to strikers or those directly interested in a trade dispute.

2 Child dependent additions to those benefits are not taxable.

3 It is government policy to bring invalidity benefit into tax at a suitable opportunity.

The general rule as far as taxation of social security benefits is concerned is that benefits which replace lost earnings are subject to tax, whereas those intended to meet a specific need of the claimant are not.