§ Mr. Patrick Jenkin
asked the Secretary of State for Social Services why he is proposing to reduce the FIS income level for second and subsequent children by £1 instead of £1.50 on the introduction of child benefit in view of the fact that this increases rather than reduces dependence on means-tested benefits and widens the poverty trap.
§ Mr. Ennals
Because £1 is the minimum reduction, consistent with a rounded basic prescribed amount, which ensures that no family loses. As such the effects on the poverty trap are minimal.