§ Sir B. Rhys Williamsasked the Secretary of State for Social Services what estimates she has made of the net extra cost of introducing family allowances for all children and making the allowances, respectively, £1 and £2 per week, assuming 48W no change in the present system of taxation and also assuming that the family allowances were made tax-free and the child tax allowances were simultaneously withdrawn, making appropriate allowances for offsets in the other social benefits.
§ Mr. Robert C. BrownFollowing is the information:
The net additional costs of introducing family allowances for all children at the rates of £1 and £2 a week are as follows: —
(1) No change in income tax allowances.("Claw back" taken as £52 for each child)£1 allowance. Net cost £110 million.£2 allowance. Net cost £520 million(2) Family allowances tax free Child tax allowances withdrawn
£1 allowance. Net cost minus £650 million.£2 allowance. Net cost nil.The other social benefits taken into account for offset purposes are national insurance benefits, supplementary benefit, family income supplement, rent and rate rebates allowances, free welfare milk and free school meals.