Miss Rathboneasked the Chancellor of the Exchequer whether he is now in a position to supply an estimate of the approximate cost of a scheme of family allowances at the rate of 5s. weekly for every child under 15 years of age in the United Kingdom, on the assumption that the gross cost would be reduced to the extent of the provision already made out of State or local government funds for such children, through rebates on Income Tax, or through allowances directly paid on behalf of children of men in the Armed Forces, of war pensioners, of civilian widows, of persons coming under unemployment insurance or under the Assistance Board or the public assistance authorities, or for evacuated children, or any other relevant provision; and if the figures under any of these headings are unobtainable, will he indicate the factors omitted?
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§ Sir K. WoodI have already informed my hon. Friend that the cost of paying an allowance of 5s. a week for every child under 15 years of age in Great Britain would be about £130,000,000 a year at the present time. It is difficult to estimate the extent by which this gross cost would be reduced by allowing for provisions already made for such children out of State or local government funds but, making the best adjustment I can for cases where children benefit from more than one such provision, I estimate that the reduction arising out of unemployment insurance and assistance, public assistance, children's allowances and orphans' pensions under the Contributory Pensions Acts, and for war casualties and a number of other analogous schemes would be about £15,000,000 a year at the present time. I must not be taken as agreeing that if the allowances suggested in my hon. Friend's Question were instituted, it would be possible in all cases to offset the whole or part of the existing allowances against the new allowances and it would be necessary to examine each kind of allowance in the light of its special features, e.g., the extent to which it is contributory and its relativity to other allowances. I have made no allowance for savings on account of the allowances paid in respect of the children of men in the Armed Forces as for a variety of reasons it would appear to be impracticable to realise any saving under this head. The actual amount of the present allowances to children of such men is, of course, very much swollen by war circumstances. A further reduction in the gross cost arises on Income Tax allowances. This would amount at the present time to about £55,000,000 a year, but the magnitude of this figure reflects of course the high poundage of tax now ruling, the high level of war earnings and the recent war-time reductions in personal and earned income allowances.