§ Mr. Frank Field
asked the Secretary of State for Social Services by what amount child benefit would be increased if the benefit became taxable and the resulting revenue was 332W used to finance an increase in benefit; and how many families (a) living at or below the supplementary benefit level and (b) drawing family income supplement would gain (i) a net increase in income and (ii) a net decrease.
§ Mr. Newton
If child benefit were to be taxed, the resources realised could be used to increase the rate of benefit by £2.15 a child a week. This would, however, have a minimal effect on standard rate taxpaying families.
The effect on those families living at or below the supplementary benefit level or receiving family income supplement cannot be estimated with any accuracy because no information is available as to their incomes throughout a year.