§ Mr. FlynnTo ask the Chancellor of the Exchequer what would be the loss of revenue, for each taxable social security benefit, if all benefits were tax free.
§ Mr. DorrellAvailable estimates are in the table which shows the reductions in revenue for each social security benefit at 1994–95 levels. Each benefit has been treated as the top slice of the recipient's income. No one whose annual income is less than £3,445 pays income tax.
Reductions in income tax if benefits made tax free Benefits Reduction in revenue £ million Retirement pension 1,830 Widows' benefits 100 Invalid care allowance 10 Unemployment benefit and income support paid in lieu of unemployment benefit 300 Statutory sick pay1 160 Statutory maternity pay 100 1 Assuming that all payments by employers would be taxable.