§ Mr. McNamaraasked the Chancellor of the Exchequer what estimate he has made of the saving to the Exchequer if family allowances were given on the basis of 30s. for the first child and £1 for each subsequent child in the family coupled with the abolition of tax allowances for children; and what is the estimated cost of exempting family allowances from income tax.
§ Mr. Patrick JenkinAssuming that family allowances remained taxable and that clawback was abolished there would be a net gain to the Exchequer of about £240 million for Great Britain for the full year. I am not sure what the hon. Member has in mind in the second part of his Question but, if the scheme were as outlined but family allowances were exempt from tax, there would be a net cost of about £45 million.