HC Deb 01 February 1972 vol 830 cc78-80W
86. Mr. Hugh Fraser

asked the Chancellor of the Exchequer what was the effective rates of income tax for the fourth quarter of 1968, 1969 and 1970 and the estimated rate for 1971.

Mr. Patrick Jenkin

I regret that figures are not available in the form asked for.

87. Mr. Hugh Fraser

asked the Chancellor of the Exchequer whether he will give consideration to an automatic annual review of all personal and children's allowance deductible from income tax, with a view to seeking to safeguard these benefits from the inroads of inflation.

Mr. Patrick Jenkin

My right hon. Friend reviews the level of the income tax personal allowances before each Budget.

Mr. Meacher

asked the Chancellor of the Exchequer what is his estimate of the weekly gain or loss to married couples with, respectively, one, two, three, four, five, and six or more children on the abolition of both family allowances and child tax allowances and their replacement by a child endowment tax-free cash benefit of £1.75 per week for each child including the first.

Mr. Patrick Jenkin

The answer depends on the ages of the children and the income of the parents. The table below assumes that:

  1. (a) The parents' income is wholly earned and together with family allowances is less than £4,005.
  2. (b)All the children are under the age of 11.
  3. (c)Family income supplement and other social security benefits would continue at their present level.

Benefit per week
Number of Children Minimum Maximum
£ £
1 .59 1.75
2 .87 2.60
3 1.08 3.35
4 1.29 4.10
5 1.50 4.85
6 1.71 5.60
7 1.92 6.35
8 2.13 7.10

The maximum benefit would apply to parents not liable to tax under the present or the proposed systems whatever the age of their children.

The minimum benefit would apply to parents with incomes still liable to tax under the present system) after deducting all relevant allowances. The minimum benefit should be reduced by £0.186 for each child aged 11–16 and for each child over 16 by £0.373 (e.g., parents liable to tax with three or more children all over 16 would be out of pocket).