HC Deb 04 May 1977 vol 931 cc179-80W
Mr. Newton

asked the Chancellor of the Exchequer what would be the net revenue effect, assuming a basic income tax rate of 33 per cent., of abolishing the child tax allowances for children under 11 years of age, making corresponding reductions for children over 11 years of age, and increasing child benefit by £1.25 per week for first children and by £1.10 per week for second and subsequent children.

Mr. Robert Sheldon

Assuming that the benefit for the first child in single-parent families was the same as for second and subsequent children, the estimated net effect on the Exchequer for 1977–78 would be additional revenue of about £80 million. This is on the assumption that no special measures would be taken to compensate groups which would be worse off as the results of a scheme on these lines.