§ Mr. Tapsell
asked the Minister of Social Security (1) how much of the annual gross cost of family allowances, following the 3s. increase in October, will be recovered through taxation on families in receipt of family allowances, and how much through other adjustments;
(2) what is the estimated annual gross cost of family allowances following the three shilling increase in October.
§ Mrs. Hart
The gross cost will be about £340 million for a full year. Of 251W this it is estimated that about £75 million will be recovered from tax paid on the family allowances themselves and £83 million from the reduction of the total tax allowances of families in connection with the 7s. and 3s. increases in family allowances this year. In addition, the adjustments to social security benefits accompanying these increases will save about £13 million in a full year.