House of Commons · Written Ministerial Statement
Disability Premium Compensation Scheme: Income tax exemption
14 July 2025 · Treasury
Proposed by James Murray Lab Co-op Ealing North
Summarised by AI from the official record, so it can contain mistakes.
At a glance
Key points
- Government will legislate to exempt Disability Premium Compensation Scheme payments from income tax
- Exemption will apply retrospectively from December 2024
- Statement made in response to an issue raised by James Murray MP
Issue summary
The statement addresses the taxation status of payments made under the Disability Premium Compensation Scheme.
Action requested
The Government will legislate to exempt these payments from income tax and apply this exemption retrospectively from December 2024.
Key facts
- Payments under the Department for Work and Pensions disability premium compensation scheme are exempt from income tax.
- The legislation applies retrospectively from December 2024, when payments began.
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