Family Allowances

HC Deb 18 March 1974 vol 870 cc53-4W

Mr. Pardoe

asked the Secretary of State for Social Services what is the annual cost of providing the present system of family allowances.

Mr. O'Malley

The gross cost in 1973–74, including the cost of administration, is estimated to be about £360 million, of which about £200 million is paid back in income tax.

Mr. Pardoe

asked the Secretary of State for Social Services what would be the annual cost of increasing the family allowance by paying 90p for the first child and £1 for every subsequent child.

Mr. O'Malley

On the assumption that other social security benefits would be adjusted to take account of the higher family allowances, the cost, excluding additional administration costs, would be about £340 million a year. The amount paid back in tax would depend upon what was decided about the tax arrangements.