HC Deb 05 March 1979 vol 963 c547W
Mr. MacGregor

asked the Chancellor of the Exchequer what would now be the costs of making eligible for tax relief the first £250 and first £500, respectively, of child care costs of (a) single-parent and (b) two-parent households, where both parents are working at the same time and have to incur such costs in order to do so.

Mr. Robert Sheldon

Information about child care costs on which to base an accurate estimate is not available, but if it were assumed that such households incurred at least £250, or £500 a year on child care expenses, the following figures would be relevant.

The cost of increasing the additional personal allowance for single parents by £250 would be about £25 million in a full year at 1978–79 income levels. An increase of £500 would cost about £45 million.

The cost of increasing the married person's allowance by £250 for all couples where the wife has earned income and where there are children, would be about £265 million at 1978–79 income levels. An increase of £500 in the allowance would cost about £520 million.