HC Deb 03 March 1992 vol 205 cc119-21W
Ms. Armstrong

To ask the Chancellor of the Exchequer (1) if he will estimate the effect on Treasury revenues in 1992–93 of introducing an allowance against income tax of(a) £1,000 and (b) £2,000 for all working mothers, giving both full and first year costs;

(2) if he will estimate the effect on Treasury revenues in 1992–93 of introducing an allowance against income tax of (a) £1,000 and (b) £2,000 for all working mothers, with at least one child under age five years, giving both full and first year costs.

Mr. Maude

Estimates of the cost of introducing allowances against taxable incomes for working mothers and lone parents at 1992–93 levels are set out in the table:

Cost (£ billion) allowance of
(a) £1,000 per year (b) £2,000 per year
All working mothers1 0.6 1.2
All working mothers with a child under five1 0.2 0.3
1 Including lone parents who are working.

Ms. Armstrong

To ask the Chancellor of the Exchequer if he will estimate the effect on Treasury revenues in 1992–93 and in a full year of allowing the cost of child care against the income tax of(a) working mothers and (b) either partner in a two-earner couple, giving figures separately for children under five and those aged five to 16 years.

Mr. Maude

Information on child care costs paid by working mothers and by two-earner couples with different levels of income is not available. It is therefore not possible to estimate the cost of such a measure.

Ms. Armstrong

To ask the Chancellor of the Exchequer if he will estimate the effect on Treasury revenues in 1992–93 and in a full year of introducing a child care tax allowance of £50 a week for(a) working women and (b) either partner in a two-earner couple, assuming that relief is available at the basic rate only, giving figures separately for (i) all families with dependent children and (ii) families with at least one child under five years.

Mr. Maude

Estimates of the full year cost of introducing such an allowance in 1992–93 are set out in the table:

Cost (£ billion) Allowance of £50 per week restricted to basic rate relief and given to
(a) working mothers and lone parents (a) the higher earner in a twoearner couple
All families with dependent children1 1.4 2.2
Family with at least one child under the age of 5 0.4 0.8
1 Includes dependent children aged 16 to 18.

Ms. Armstrong

To ask the Chancellor of the Exchequer if he will estimate the effect on Treasury revenues in 1992–93 and in a full year of introducing a child care tax allowance of £50 a week for(a) working mothers and (b) either partner in a two-earner couple, giving figures separately for (i) all families with dependent children and (ii) families with at least one child under five years.

Mr. Maude

Estimates for 1992–93 are in the table:

Cost (£ billion) allowance of £50 per week given to
working mothers and lone parents the higher earner in a twoearner couple
All families with dependent children1 1.4 2.3
Family with at least one child under the age of five 0.4 0.8
1 Includes dependent children aged 16 to 18.

Quantile group of taxpayers Total income (£ million) Average income (£ million) Total earned income (£ million) Average earned income (£ million)
1990–91
Top 1 per cent. 28 107,400 20 78,000
Top 5 per cent. 68 53,000 54 42,200
Top 10 per cent. 101 39,600 84 32,800
Bottom 70 per cent. 160 8,900 145 8,100
Bottom 50 per cent. 95 7,400 86 6,700
Bottom 10 per cent. 12 4,700 11 4,200
All taxpayers 354 13,800 313 12,300
1991–92
Top 1 per cent. 28 113,000 22 88,400
Top 5 per cent. 71 56,300 59 47,200
Top 10 per cent. 106 42,000 91 36,200
Bottom 70 per cent. 166 9,400 152 8,700
Bottom 50 per cent. 98 7,800 89 7,200
Bottom 10 per cent. 12 4,900 11 4,400
All taxpayers 368 14,600 332 13,300