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Unemployment Benefits

Volume 19: debated on Monday 1 March 1982

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asked the Chancellor of the Exchequer what is his most recent estimate of the extra revenue that will be raised by the taxation of benefits for the unemployed: (a) in 1982–83 and (b) in a full tax year, assuming that personal tax allowances are raised in line with inflation and that tax rates remain unchanged.

[pursuant to his reply 22 February 1982, c. 286]: At 1981–82 levels of unemployment, income and benefits and under the income tax assumptions specified, the estimated yield would be (a) of the order of £300 million (assuming that benefits are brought into tax on 5 July 1982) and (b) of the order of £525 million in a full year.These figures are based on recently revised information on these benefits in 1981–82. On the same basis, the figures of £300 million and £475 million given on 25 January to my hon. Friend the Member for Rugby (Mr. Pawsey) would be revised to £325 million and £550 million respectively.—[Vol. 17, c.

225.]