HC Deb 13 January 2003 vol 397 cc389-90
1. Andrew Mackinlay (Thurrock)

If he will make a statement on planned improvements to child benefit and its delivery. [89700]

The Secretary of State for Work and Pensions (Mr. Andrew Smith)

This Government have shown their commitment to universal child benefit as the foundation of their support for children, with record increases and child benefit for the first child up by £4.70 a week-a 25 per cent. real-terms increase. From April, the Child Benefit Agency will transfer to the Inland Revenue, so families will receive Government financial support for their children from a single Department.

Andrew Mackinlay

Bearing in mind that hundreds and thousands of mothers who are currently recipients of child benefit will also be beneficiaries of the new child tax credit, is it not possible that all the money could be paid in one lump sum through the payroll taxation system? Will not many people who currently receive child benefit be confused by the similar names of the benefits and not understand what they will soon be entitled to receive through the child tax credit?

Mr. Smith

I take my hon. Friend's point, but I would have thought that most parents, and mothers in particular, would like to know what they are getting in child benefit as well as what they are getting in child tax credit. The key issue is how much better off they will be as a consequence both of the increase in child benefits and the introduction of the new child tax credit.

Sir Archy Kirkwood (Roxburgh and Berwickshire)

I acknowledge that the Government have done much to increase the volumes of money that are paid through child benefit, which is welcome. The Secretary of State mentioned that a major transformation is coming in April, when the child benefit centre goes to the Inland Revenue. Is he not concerned that the decision-making report that he made to the House last July indicated that some 57 per cent. of child benefit calculations for decisions against which appeals could be made were accurate? That means that 43 per cent. were inaccurate. Surely, that needs to be sorted out before the transfer is effected in April.

Mr. Smith

I share the hon. Gentleman's concerns about that issue and note his comments. Work is being undertaken by the Child Benefit Agency specifically to improve its performance. I am pleased to say that its performance has been improving in many respects and I am confident that it is well placed to make the transfer to the Inland Revenue satisfactorily.