§ Lord Monson
asked Her Majesty's Government:
By how much per week child benefit would be raised in real terms if the wife's earned income allowance were frozen at its present level of £2,005 per annum and the resulting additional revenue diverted to the raising of child benefit, assuming inflation at a constant 5 per cent. per annum.
The Chancellor of the Duchy of Lancaster and Minister for the Arts (The Earl of Gowrie)
If, for 1985–86, the wife's earned income allowance was maintained at £2,005 instead of being indexed to £2,105, the direct revenue saving in a full year would be about £115 million. If expenditure on child benefit was increased by a corresponding amount, the resulting increase would be about 20p per week. This estimate assumes that the supplementary benefit scale rates for dependent children would also be increased by a similar amount.