HC Deb 25 March 1980 vol 981 cc1153-5
6. Mr. Hooley

asked the Secretary of State for Social Services what would be the cost in the financial year 1980–81 of increasing child benefit by £2 per week from 1 October.

The Under-Secretary of State for Health and Social Security (Mrs. Lynda Chalker)

In the region of £560 million, that is about £280 million per £1 increase in 1980–81.

Mr. Hooley

Is the hon. Lady aware that an increase of that order will be the minimum required to offset the galloping inflation that has occurred since the Government took office? Does she agree that £560 million spent on this purpose would be a superb investment in the health and welfare of our children?

Mrs. Chalker

The hon. Gentleman will not expect me to reply in detail to his question. We know that the benefit is much appreciated. He has over-exaggerated the extent of inflation in saying that a £2 increase is necessary.

Mr. Peter Bottomley

Does my hon. Friend agree that if the level of child support had increased in line with pensions since 1955, the present child benefit would be substantially higher than £6 a week?

Mrs. Chalker

Yes, Sir.

Mr. Hardy

Will the Minister confirm that the Conservative Party made a clear commitment at the last general election to maintain the value of that allowance? May we expect that commitment to be fully upheld within the next few days?

Mrs. Chalker

As the hon. Gentleman knows, I cannot reply in detail. Our commitment to the family is no less than it has been at any previous time. The hon. Gentleman must await the statement of my right hon. and learned Friend the Chancellor of the Exchequer.

Mr. Orme

Is the Minister aware that we are interested in her response to the child benefit question, made in the presence of her right hon. Friend the Chief Secretary to the Treasury? Is she aware that it will require an increase of £1½20 to maintain the allowance at the current rate of inflation? If the Chancellor of the Exchequer does not announce an increase of £1½20 tomorrow, will she resign?

Mrs. Chalker

I do not think that the last question is one that I am required to answer at the Dispatch Box. I am sure that my right hon. Friend heard what has been said both today and on many previous occasions in the past. All representations have been carefully noted.