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Disability Premium Compensation Scheme: Income tax exemption

14 July 2025

Proposing MP
James Murray Lab Co-op
Ealing North
Type
Written Ministerial Statement
Department
Treasury
View on Parliament.uk -->

At a Glance

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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