§ Mr. Robert McCartneyTo ask the Chancellor of the Exchequer if he will list those social security benefits that are not taxable or are in certain instances exempt from taxation and the gross annual amounts that are not subject to tax; and if he will make a statement on the distinction between such differing tax approaches. [40906]
§ Mr. JackA list of taxable and non-taxable social security benefits appears in the table.
£ million Cost 1995–96 Non-taxable benefits Pensioners' Christmas bonus 135 Sickness benefit1 348 Maternity allowance 35 War pension 1,247 Attendance allowance 2,089 Severe disability allowance 797 Disability living allowance 3,416 Disability working allowance 23 Industrial disablement benefits 659 Child benefit 6,327 One parent benefit 312 Family credit 1,682 Housing benefit2 10,996 Council tax benefit2 2,039 Social fund payments 226 Independent living fund 103 Other miscellaneous benefits3 8 Total 30,442 Taxable benefits (wholly or partly taxable) Industrial death benefit 56 Invalid care allowance 609 Invalidity benefit1 7,713 Retirement pension 29,833 Widows benefits 1,021 Statutory sick pay 25 Statutory maternity pay 465 Income support 15,964 Unemployment benefit 1,335 Total 57,021 1. Figures given are in £millions and may not sum due to rounding. 1 All figures given are in respect of 1995–96 planned expenditure (taken from the 1995 Social Security Departmental Report). The Table does not therefore show incapacity benefit which has now replaced Sickness benefit and Invalidity benefit. 2 Includes additional local authority spending. 3 Includes Guardians allowance, Child special allowance, miscellaneous industrial injury benefits, vaccine damage payments and payments to charitable organisations. Annual expenditure on non-taxable benefits is estimated to be £30,446 million in 1995–96. Annual expenditure on taxable benefits, including those taxable in part, is estimated to be £57,021 million in 1995–96. Information is not held on the amount of taxable benefits not subject to tax.
A number of different considerations are taken into account by the Government in deciding on the tax treatment of social security benefits, for example, the purpose of the benefit in question, whether it is short or long-term, whether it is intended as a replacement for income from employment or self-employment, and whether it is subject to a means test.
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