Transfer payments
The Green Book, Central Government Guidance On Appraisal And Evaluation, Published by HM Treasury in 2020, suggests: ‘Transfer payments pass purchasing power from one economic agent to another and do not affect output or consumption of resources. They include the transfer of resources between people such as gifts, taxes such as VAT or social security payments and are not included as an element of social values.’
The 2018 Green Book suggested that transfer payments: ‘…pass purchasing power from one person to another and do not involve the consumption of resources. They include the transfer of resources between people such as gifts, taxes or social security payments and should be excluded from the overall estimate of social value.’
Guide to developing the project business case, Better business cases: for better outcomes, published by HM Treasury in 2018, defines a transfer payment as: ‘A payment for which no goods or services are received in return.’
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