Vol. 426 No. 1
76 Ms O'Donnell asked the Minister for Social Welfare the cost to the Exchequer in 1993, and for a full year, of raising social welfare weekly rates from July, 1993 to a minimum of £65 for a recipient and £39 for an adult dependant, where the current rates have not yet reached these levels.
77 Ms O'Donnell asked the Minister for Social Welfare the amount of the gain to the Exchequer in 1993, and in a full year, of taxing all social welfare payment if the minimum payment for a recipient were raised to £65 and the minimum payment for an adult dependant were raised to £39.
It is proposed to take Questions Nos. 76 and 77 together.
The total cost of raising all social welfare payments to at least £65 and all adult dependent allowances to at least £39 would be £338 million in a full year and £150 million in 1993, assuming the increase would take effect from end July.
These benefit levels are below the current tax thresholds of £3,500 for a single person and £7,000 for a couple. A tax liability would arise only if the claimant or the claimant's spouse had other income in the relevant tax year. There is insufficient information available on the other incomes of social welfare beneficiaries to enable an accurate tax estimate to be calculated.
