HC Deb 18 June 1976 vol 913 cc297-8W
Mr. Kenneth Clarke

asked the Secretary of State for Social Services what level of child benefit would be paid for each child if (a) the level of benefit were the same for each child including the first, (b) the public funds expended on family allowances or forgone as child tax allowances at the moment were devoted instead to child benefits, except for the additional child tax allowances for children aged over 11 years and (c) additional public spending of (i) £95 million or (ii) £110 million were incurred.

Mr. Ennals

On the assumptions stated the amount payable in 1977–78 would be (i) £2.50 and (ii) 2.52 per child.

Mrs. Castle

asked the Secretary of State for Social Services what would be the latest date at which the rate of child benefit would have to be announced in order to enable the full scheme, including the replacement of child tax allowances, to be introduced in April 1977.

Mr. Ennals

The latest date for announcing the rate at which child benefit will start has already passed. Printing of order books containing the rates announced in my statement of 25th May—[Vol. 912, c. 284–97] —commenced almost immediately after that statement was made.

Mrs. Castle

asked the Secretary of State for Social Services to what figure the family allowance of £1 for the first child would have to be increased in order to maintain the same overall level of family support if the proposed increase in child tax allowances were to be reduced from £60 to £30 per child.

Mr. Ennals

If the proposed increase in child tax allowances were reduced from £60 to £30 a child the saving to the Exchequer would be £250 million. Assuming such a sum were available to defray the net Exchequer cost of increasing the proposed new benefit for first children it would enable the gross rate to be increased from £1 to £1.75.

Mrs. Castle

asked the Secretary of State for Social Services what would be the cost falling on the contingency reserve of the introduction of a full child benefit of £2.64 per week and £2.24 per week, respectively, on the alternative assumptions of a child tax allowance of £300 and £240 per child in each case.

Mr. Ennals

The figures are set out in the following table:

Annual Child Tax Allowance to be subsumed Weekly child Benefit Per Child Net Exchequer Cost/Saving
£300 £2.64 +£180m
£300 £2.64 -£60m
£240 £2.64 +£425m
£240 £2.64 +£180m