§ Miss BeggTo ask the Chancellor of the Exchequer if he will estimate(a) how many people, broken down by income decile, would gain from and (b) the cost of a stand-alone child care tax credit that covered 90 per cent. of the costs of eligible child care from families with incomes below £13,480 and was reduced by 37 per cent. for families with incomes above that threshold. [165085]
§ Dawn PrimaroloIt is not possible to estimate the impact of a "stand-alone" system, due to uncertainties around the detail of such a system. Approximate estimates for the impact of increasing the maximum percentage of child care costs paid for under the working tax credit from 70 per cent. to 90 per cent. are shown in the table.
19W
Number of households estimated to gain, by income decile1 1 10,000 2 10,000 3 20,000 4 50,000 5 60,000 6 70,000 7 50,000 8 30,000 9 10,000 10 2— Total 300,000 Annual cost £0.2 billion 1On an equivalised household income basis; figures are rounded to the nearest 100,000. 2Indicates impact of less than 5,000. Note: Figures may not sum due to rounding. Estimates provided are uncertain due to the need to take into account changes in other taxes and benefits when making such an assumption, and the uncertainty over future distributions of earnings.
§ Miss BeggTo ask the Chancellor of the Exchequer if he will estimate how many children would be lifted above 60 per cent. median income by 2004–05 by a £545 per annum increase in the per child element of the child tax credit. [165076]
§ Dawn PrimaroloIncreasing the per child element of the child tax credit by £545 per year could reduce the number of children in households below 60 per cent. of equivalised median household income after housing costs by around 1 million.
§ Miss BeggTo ask the Chancellor of the Exchequer if he will estimate(a) how many people, broken down by income decile, would gain from and (b) the annual cost of an increase of £545 per year to the per child element of the child tax credit for each child under five in a family; and how many children would be lifted above 60 per cent. median incomes by 2004–05 as a result of such an increase. [165082]
§ Dawn PrimaroloApproximate estimates for the impact of increasing the per child element of the child tax credit by £545 per year for each child under the age of five are shown in the table.
20W
Number of households estimated to gain, by income decile1 1 300,000 2 500,000 3 500,000 4 300,000 5 200,000 6 100,000 7 100,000 8 2— 9 2— 10 2— Total 2,000,000 Annual cost £0.5 billion Reduction in number of children (of any age) in households below 60 per cent. of median income3 0.2 million 1On an equivalised household income basis; figures are rounded to the nearest 100,000. 2Indicates figures of less than 50,000. 3On an after housing costs, equivalised household income basis. Note: Figures may not sum due to rounding. More households are estimated to gain from these changes in the second decile than the first, because there are more households with children in the second decile.
Estimates provided are uncertain due to the need to take into account changes in other taxes and benefits when making such an assumption, and the uncertainty over future distributions of income.
§ Miss BeggTo ask the Chancellor of the Exchequer if he will estimate(a) how many people, broken down by income decile, would gain from and (b) the annual cost of an increase of £1,625 per year to the per child element of the child tax credit for fourth and subsequent children; and how many children would be lifted above 60 per cent. median incomes by 2004–05 as a result of such an increase. [165083]
§ Dawn PrimaroloApproximate estimates for the impact of increasing the per child element of child tax credit by £1,625 per year for fourth and subsequent children are shown in the table.
Number of households estimated to gain, by income decile1 1 70,000 2 120,000 3 60,000 4 40,000 5 20,000 6 10,000 7 2— 8 2— 9 2— 10 2— Total 320,000 Annual cost £0.7 billion Reduction in number of children in households below 60 per cent. of median income3 0.3 million 1On an equivalised household income basis; figures have been rounded to the nearest 10,000. 2Indicates impact of less than 5,000. 3On an after housing costs, equivalised household income basis. Note: Figures may not sum due to rounding. More households are estimated to gain from these changes in the second decile than the first, because there are more households with children in the second decile.
Estimates provided are uncertain due to the need to take into account changes in other taxes and benefits when making such an assumption, and the uncertainty over future distributions of earnings.
§ Miss BeggTo ask the Chancellor of the Exchequer if he will estimate(a) how many people, broken down by income decile, would gain from and (b) the annual cost of an increase of (i)£260 per year and (ii) £545 per year to (A) the per child element of the child tax credit and (B) child benefit. [165084]
§ Dawn PrimaroloApproximate numbers of households estimated to gain front proposals(A) and (B) are shown in the table.
21W
Income decile1 Increased per child element of child tax credit (A) Increased child benefit (B) 1 700,000 700,000 2 1,000,000 1,000,000 3 900,100 900,000 4 600,000 800,000 5 300,100 800,000 6 200,000 700,000 7 100,000 600,000 8 100,000 600,000 9 2— 500,000 10 2— 400,000 Total 3,900,000 7,000,000 1On an equivalised household income basis; figures are rounded to the nearest 100,000. 2Indicates impact of less than 50,000. Note: Figures may not sum due to rounding. More households are estimated to gain from these changes in the second decile than the first, because there are more households with children in the second decile.
Approximate estimates for the cost of increasing the per child element of the child tax credit are shown in Table 4 of the publication, "Tax ready reckoner and tax reliefs", which is available on the HM Treasury website at http://www.hm-treasury.gov.uk/media//AAB24/pbr03_trr_revised.pdf
Approximate estimates for the cost of increasing all the 2004–05 child benefit rates by (i) £260 per year and (ii) £545 per year are, respectively, £3.4 billion and £7.1 billion.
Estimates provided are uncertain due to the need to take into account changes in other taxes and benefits when making such an assumption, and the uncertainty over future distributions of earnings.