Social security advisers back compensation for VAT on fuel
Tuesday 13 July 1993
In a report to Peter Lilley, the Secretary of State for Social Security, the independent Social Security Advisory Committee estimates that poor people with an average fuel bill of pounds 500 a year will need an extra pounds 40 a year when VAT at 8 per cent is imposed from April 1994 and pounds 90 a year when it rises to 17.5 per cent from April 1995.
Sir Peter Barclay, the committee's chairman, said: 'Normal uprating of benefits will compensate them only partly and belatedly. It is essential that extra money should be added to a range of benefits for poorer people if significant hardship is to be avoided.'
The report says the cost to the Treasury would be an extra pounds 400m. At least pounds 320m will have to be paid out through uprating benefits as the VAT pushes up the retail price index. 'The additional cost of fully compensating 8 million people . . . represents only a modest proportion of the total revenue which the imposition of VAT on fuel may be expected to generate.'
- 1 A daily walk 'can add seven years to your life'
- 2 Rules on 5p plastic bags likely to lead to arguments at the check-out
- 3 Chrissie Hynde says women who 'wear high heels and dress provocatively entice rapists'
- 4 Blood Moon and Supermoon: September to bring brightest – and dimmest – full Moon of the year on same night
- 5 News agency criticised for describing Amal Clooney as 'actor's wife' in coverage of human rights trial
University to mark down students who say 'illegal immigrants' in class
Rules on 5p plastic bags likely to lead to arguments at the check-out
The nine most warmongering countries in the world revealed
Blood Moon and Supermoon: September to bring brightest – and dimmest – full Moon of the year on same night
VMAs 2015: Taylor Swift wins big, Kanye West runs for US president, Nicki Minaj calls out Miley Cyrus and all of tonight's winners
Climate change: 2015 will be the hottest year on record 'by a mile', experts say
'Women only' train carriages: Jeremy Corbyn unveils radical move to tackle public harassment
Black holes are a passage to another universe, says Stephen Hawking
Tony Blair attacks Jeremy Corbyn's 'Alice In Wonderland' politics
Theresa May says migrants should be banned from entering the UK unless they have jobs lined up
Iain Duncan Smith 'should resign over disability benefit death figures', says Jeremy Corbyn
£28000 - £37000 per annum: Recruitment Genius: This is an opportunity to join ...
£22000 - £29000 per annum: Recruitment Genius: This company's mission is to ma...
£13832 per annum: Recruitment Genius: This 5 star leisure destination on the w...
£20000 - £32000 per annum: Recruitment Genius: A Sales Account Manager is requ...