HC Deb 05 June 1998 vol 313 c402W
Mr. Webb

To ask the Secretary of State for Social Security what the total(a) gross and (b) net savings will be in 1998–99 from not having uprated child benefit in line with prices since 1979; and what the current rate per child would be had it been uprated in line with prices without any additional payment for the eldest child. [44322]

Mr. Keith Bradley

If Child Benefit had been subject to annual uprating as described, the level of the benefit in April 1998 would have been £12.70 per week per child. The gross additional cost in 1998–99 is estimated to be £1.5 billion. The cost net of income-related benefit offsets would be around £1.1 billion.

Notes:

  1. 1. Cost estimates are rounded to the nearest £10 million.
  2. 2. Figures are calibrated to the caseload and expenditure forecasts underlying the 1998 Departmental Report.
  3. 3. The uprating calculation assumes rounding to the nearest 5p at each annual uprating.
  4. 4. Estimates apply only to Child Benefit, and exclude any changes made to One Parent Benefit.

Source:

Based on data taken from the 1995–96 Family Resources Survey and the May 1996 Income Support Quarterly Statistical Inquiry uprated to 1998–99 prices, benefits and earnings level.