§ Mr. Pardoeasked the Secretary of State for Social Services (1) what estimate he has made of the cost of increasing family allowances to 30s. per child, including the first child in the family, and of the amount of the cost recoverable in income tax in 1969–70 from a reduction in personal allowances leaving the standard rate taxpayer with the same net income;
(2) what estimate he has made of the cost of increasing family allowances by 5s., 10s. and 15s. per child, respectively, and of the amount of the cost recoverable in income tax in 1969–70 from a reduction in personal allowances leaving the standard rate taxpayer with the same net income.
§ Mr. SwinglerThe figures for a full year on the oasis of current earnings and tax rates would be of the following order:—
280W
Amount of increase Gross cost * Tax on higher family allowances £ million Tax recovered from proposed restriction of tax allowances 5 90 20 45 10 180 40 95 15 270 60 135 To 30s. including 30s. for first child) 750 160 380 * Against this there would be offsetting savings on social security benefits, depending on the precise adjustments proposed.