§ Mr. Meacherasked the Chancellor of the Exchequer, if family allowances and
Weekly rate of child endowment Number of children in family £1,000 Annual income £2,000 £5,000 A B A B A B £1.50 … … 1 −5.40 + 18.00 −5.40 + 18.00 −5.40 + 18.00 2 −510 + 41.70 −25.56 + 21.24 −25.56 +21.24 3 −2.50 + 67.70 −49.36 + 20.84 −49.36 + 20.84 4 + 0.10 + 93.70 −73.16 + 20.44 −73.16 + 20.44 6 + 5.30 + 145.70 −141.76 −1.36 −141.76 −1.36 £2.00 … … 1 + 12.80 + 44.00 + 12.80 + 44.00 + 12.80 + 44.00 2 + 31.30 + 93.70 + 10.84 + 73.24 + 10.84 + 73.24 3 + 52.10 + 145.70 + 5.24 + 98.84 + 5.24 + 98.84 4 + 72.90 + 197.70 −0.36 + 124.44 −0.36 + 122.44 6 + 114.50 + 301.70 −32.56 + 154.64 −32.56 + 154.64 £2.50 … … 1 + 31.00 + 70.00 + 31.00 + 70.00 + 31.00 + 70.00 2 + 67.70 + 145.70 +47.24 + 125.24 +47.24 + 125.24 3 + 106.70 + 223.70 + 59.84 + 176.84 + 59.84 + 176.84 4 + 145.70 + 301.70 + 72.44 + 228.44 + 72.44 + 228.44 6 + 223.70 + 457.70 + 76.64 + 310.64 + 76.14 + 310.64 £3.00 … … 1 +49.20 + 96. 00 +49.20 + 96.00 + 49.20 + 96.00 2 + 104.10 + 197.70 + 83.64 + 177.24 + 83.64 + 177.24 3 +161.30 + 301.70 + 114.44 + 254.84 + 114.44 + 254.84 4 + 218.50 + 405.70 + 145.24 + 332.44 + 145.24 + 332.44 6 + 332.90 + 613.70 + 185.84 + 466.64 + 169.74 +466.64 £3.50 … … 1 + 67.40 + 122.00 + 67.40 + 122.00 + 67.40 + 122.00 2 + 140.50 + 249.70 + 120.04 + 229.24 + 120.04 + 229.24 3 + 215.90 + 379.70 + 169.04 + 332.84 + 169.04 + 332.84 4 + 291.30 + 509.70 + 218.04 +436.44 +218.04 + 436.44 6 + 442.10 + 769.70 + 295.04 + 622.64 +263.34 + 622.64 Notes:
Annual Gains (+) or Loss (−).
Column A shows the annual gain or loss where the child endowment is taxed and Column B shows the gain or loss where the endowment is not taxed. The annual incomes shown do not include family allowances. It has been assumed that all the children are under 11 years of age except in the case of the six child family where it has been assumed that four children are under 11 and two are over 11 but not over 16.
480Wchild tax allowances were both abolished and replaced by a child endowment scheme paid to all children, including the first, up to the age of 18 years or to the end of full-time secondary education, whichever is sooner, what would be the net cost to the Exchequer if the endowment were, respectively, taxed and untaxed at £1.50, £2, £2.50, £3 and £3.50 per week; and what would be the gain/ loss from these changes to familites with one, two, three, four and six children at £1,000, £2,000 and £5,000 annual income levels.
§ Mr. Nott,pursuant to his reply [OFFICIAL REPORT, 6th February 1974; Vol. 868, c. 557], gave the following information:
The estimated cost of the proposal cannot be given more accurately than in the reply to the hon. Member on 19th November 1973, where it was assumed that parents of children over 16 but under 19 would be entitled to child endowment if the child was still receiving full-time secondary education. The gains or losses to the families quoted would be as follows: