§ Mr. Meacherasked the Secretary of State for Social Services what would be the present net annual cost, taking into account savings in social security expenditure, of paying, respectively, taxed and tax-free family allowances of, respectively, £2, £2.50 and £3 per week in respect of all children, including the first, while simultaneously ending all child allowances for tax purposes.
§ Sir K. JosephIf the withdrawal of child tax allowances were to be accompanied by the ending of the provisions under which part of the present family allowance is recouped by an adjustment of personal tax allowances, a taxable family allowance of £2 for each child would result in a net saving of about £90 million in 1972–73. On the same basis, taxable family allowances of £2.50 and £3 for each child would cost about £150 million and £400 million respectively. Tax-free family allowances at these rates, accompanied by a withdrawal of child tax allowances, would cost approximately £300 million, £640 million and £980 million a year respectively.