§ Mr. Kenneth Clarkeasked the Secretary of State for Social Services how many parents with only one child have so far submitted claims for the new child benefit to be introduced in April 1977; and what proportion of the total eligible in the group invited to submit claims in October 1976, namely parents with one child aged 8 years to 12 years, he estimates that those claims represent.
§ Mr. OrmeUp to the end of October, about 785,000 claims for child benefit had been received from parents with one child. These claims are for children in 13–19 age group, for whom claims were invited in September, as well as for 8–12 year olds. It is estimated that claims have been made for about 45 per cent. of eligible 13–19 year-olds and about 35 per cent. of eligible 8–12 year-olds.
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§ Mr. Ralph Howellasked the Secretary of State for Social Services what is his estimate of the real value of child benefit at £1.50 to April 1977 compared with its value when the rate was first introduced in April 1975.
§ Mr. Ralph Howellasked the Secretary of State for Social Services how he proposes to maintain the real value of child benefits after April 1977; and, in particular, if he will undertake to up-grade them, in line with child additions to the various national insurance and supplementary benefits.
§ Mr. OrmeThe Child Benefit Act 1975—Section 5(5)—provides the basis on which an annual review of the rates of child benefit is to be undertaken. Since child benefit is a tax-free addition to other income, usually earnings, whereas national insurance and supplementary benefits are provided against the interruption or cessation of earnings, the considerations governing upratings will not be the same.
§ Mrs. Chalkerasked the Secretary of State for Social Services whether he will confirm that under the Child Benefit Act 1975 increases in child benefit for first children will be taken into account for unemployment and sickness benefit purposes, but that increases in child benefit in respect of second and subsequent children will not be taken into account.
§ Mr. OrmeI can confirm that the rates of child benefit which will apply from April 1977 will require the allowances paid for first children, with unemployment or sickness benefit, to be reduced—by the amount of child benefit—but not those for second and subsequent children.