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Integrated Tax Credit Scheme

Volume 81: debated on Tuesday 18 June 1985

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asked the Secretary of State for Social Services what consideration was given to the immediate introduction of a fully integrated tax credit scheme in the formulation of his recent Green Paper on social security.

The Green Paper makes it clear that the Government's approach was to consider the objectives of each part of the social security system and how these might best be met. That was the first priority. But the Government accept the importance of closer alignment between tax and social security where possible. The family credit scheme and the proposed move to an April uprating date are examples of this. The computerisation of the PAYE and social security systems offer new opportunities which we are examining. Further aspects of closer integration of the two systems will be considered in the Green Paper on the reform of personal income tax to be published later this year.