§ Mr. Raceasked the Secretary of State for Social Services what would be the net cost in a full year at 1982–83 benefit rates, assuming a system of independent taxation, and that child benefit was taxable, of raising child benefits to (a) the level of child support (child dependancy additions and child benefit) for long-term national insurance beneficiaries and (b) the putative level of child support under previous uprating methods.
§ Mr. NewtonThe information requested is as follows
(a) about £3¼ billion and (b) about £4 billion. In calculating these net costs it has been assumed that where the child benefit is payable to the mother it would be liable to tax as her income. In addition, it has been assumed the system of independent taxation in operation is that the wife's earned income is taxed as her income; any wife's investment income would still be taxed as part of the husband's income. In these circumstances not much more than 40 per cent. of the child benefit payments would be brought in to the tax field.