HC Deb 20 April 1989 vol 151 c275W

To ask the Secretary of State for Social Security if he will estimate the level of child benefit in

 Reductions in child benefit needed to maintain the 1978–79 level of tax-free income for taxpayers with and without children Single person Married couple Married Couple, 1 child, aged 3 Married couple, 2 children, aged 4, 6 Married couple 3 children, aged 3, 8, 11 Child Benefit and tax not paid on allowances 1978–79 (£pa) 325.05 506.55 673.19 839.83 1,018.02 Note 1 Child Benefit and tax not paid on allowances 1989–90 (£pa) 696.25 1,093.75 1,470.75 1,847.75 2,224.75 Note 1 Child Benefit and tax not paid on allowances 1989–90 if married couple with children increased at same ratio as married couple without children — — 1,454.09 1,814.03 2,198.92 Change in child benefit required in 1989–90 to restore to position in 1978–79 (£ per child per week) — — -0.32 -0.32 -0.17 Child Benefit and tax not paid on allowances 1989–90 if married couple with children increased at same ratio as single person — — 1,440.63 1,797.24 2,178.56 Change in child benefit required in 1989–90 to restore to position in 1978–79 (£ per child per week) — — -0.58 -0.49 -0.30

Notes:

1. Tax free income is calculated by applying the standard rate of tax to the appropriate tax allowances and adding the annual value of Child Benefit in payment. For example, tax free income in 1989–90 for a one-earner married couple with one child is calculated as: 25 per cent. (standard tax rate) × £4,375 (married man's tax allowance) = £1,093.75 plus £377 (Child Benefit of £7.25 per week for 52 weeks). Total tax free income =£1,470.75.

2. Figures for 1978–79: tax allowances—single person's £985, married couple £1,535, children under 11 £100, children between 11–15 years £135. Tax rate 33 per cent. Child Benefit £2.57 per week.

3. Figures for 1989–90: tax allowances—single person £2,785, married man £4,375. Standard rate of tax 25 per cent. Child Benefit £7.25 per week.

4. All figures are subject to rounding.

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