HC Deb 02 April 1976 vol 908 cc607-8W
Mrs. Chalker

asked the Secretary of State for Social Services what would be the net cost of raising family allowances by (a) 50p per week and (b) 75p per week, assuming the increases would be liable to income tax, but not to clawback.

Mr. Meacher

On the assumptions stated the estimated net cost would be

  1. (a) about £100 million in a full year and
  2. (b) about £150 million.

Mrs. Chalker

asked the Secretary of State for Social Services what would be the net cost of raising family allowances by (a) 50p per week and (b) 75p per week, assuming the increases would be liable both to income tax and clawback.

Mr. Meacher

If the full benefit of the increased family allowance were passed on to those receiving child dependency benefits the estimated net cost, on the assumptions stated would be (a) about £30 million (b) about £45 million. If child dependency benefits were adjusted downward to take account of the increased family allowance the net cost, if any, after tax and full clawback, would be negligible.

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