Welfare Reform on the Web (May 2004): Social Security - UK

DISABILITY IN TAX AND RELATED BENEFITS: THE CASE FOR A MODERN AND COHERENT APPROACH

Low Incomes Tax Reform Group, Chartered Institution of Taxation

London: 2003

The report reviews a range of apparent anomalies at the interface of tax and disability benefits. It covers VAT on products used by disabled people, tax credits and support for job retention.

A MILLION HIDDEN WORKERS

L. Reith

Disability Rights Bulletin, Spring 2004, p.8-9

Based on the Labour Force Survey, government claims one million people on Incapacity Benefit want to work. However, many of them have no realistic chance of ever getting a job, however much they would like to work.

TAX CREDIT SYSTEM BRANDED A DISASTER

S. Hall

The Guardian, April 22nd 2004, p.11

The government's handling of its tax credit scheme "was nothing short of disastrous", the public spending watchdog rules today as figures reveal two million of the 4.9 million pensioners eligible for pension credits are failing to claim them. The Public Accounts Committee criticises the Inland Revenue for making an "unacceptable" number of mistakes and for setting an "unrealistic and incautious" timetable for introducing the system. The Inland Revenue also did not have adequate contingency arrangements, it says.

(See also The Independent, April 22nd 2004, p.9)