HC Deb 13 March 1975 vol 888 cc241-3W
Mr. Richard Wainwright

asked the Secretary of State for Social Services (1) what would be the net cost, taking into

the various health districts should be made with some caution as tables based on population figures do not take account of movements of patients across district boundaries.

account savings on other benefits, of introducing a tax-free child endowment, to replace family allowances and child tax allowances, for all children including the first, over and above the cost of the increase in family allowances due to take effect in April 1975 at the following rates: £3.60 for children aged under 11 years, £4.45 for children aged 11 years to 15 years, £5.30 for dependent children aged 16 to 17 years, and £6.10 for dependent children aged 18 years ;

(2) what would be the net cost, taking into account savings on other benefits, of introducing a tax-free child endowment, to replace family allowances and child tax allowances, for all children including the first, over and above the cost of the increase in family allowances due to take effect in April 1975 at the rate of £3.60 for each child.

Mr. O'Malley:

On current rates of tax, the additional cost to the Exchequer in 1975–76 would be about £1,290 million and about £1,050 million, respectively, after allowing for the extra revenue flowing from the abolition of child tax allowances. The additional cost in public expenditure would be considerably more than those figures.