asked the Secretary of State for Social Services what would be the estimated annual cost of raising the mobility allowance to £10 per week; and what savings would accrue by way of extra income tax revenue and reduced supplementary benefit expenditure.
The estimated annual cost of raising mobility allowance to £10 per week is £14 million in 1977–78 rising to £35 million when the allowance has been fully phased in. There is no reliable means of estimating the tax implications, because there are no data about the income distribution of mobility allowance beneficiaries. It is unlikely that there would be any reduction in supplementary benefit expenditure. Mobility allowance affects supplementary benefit entitlement only if a specific payment is being made for the same purpose.