§ Mr. Barnesasked the Secretary of State for Social Services (1) what estimate he has made of the cost of increasing family allowances to 35s. for the second and subsequent children, and of the amount of the cost recoverable in income tax in 1970–71 and from a reduction in per- 86W sonal allowances leaving the standard rate taxpayer with the same net income;
(2) what estimate he has made of the cost of increasing family allowances to 35s. including the first and subsequent children, and of the amount of the cost recoverable in income tax in 1970–71 and from a reduction in personal allowances leaving the standard rate taxpayer with the same net income.
§ Mr. EnnalsThe figures for a full year, on the basis of current numbers of families and children, income tax rates as announced in the 1969 Budget, and the levels of earnings estimated for this year would be of the following order:—
Great Britain £ million Amount of increase in family allowances Gross Cost* Tax recovered from higher allowances and from proposed restriction of tax allowances To 35s. for second and subsequent children in family 295 255 To 35s. for all children (including first) 940 825 * Against this there would be some offsetting savings on other social security benefits, depending on the precise adjustments proposed.