§ Sir B. Rhys-Williamsasked the Secretary of State for Social Services if he will make a statement on his policy in regard to child endowment.
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§ Mr. OrmeThe child benefit scheme, set up under the Child Benefit Act passed last year, will come into operation next April. We hope to make a statement about the rate of benefit shortly.
§ Mr. Kenneth Clarkeasked the Secretary of State for Social Services what would be the level of child benefit for each child if it were introduced in April 1977 at no additional Exchequer cost above the levels of the April 1976 Budget Statement what the value of such a level of benefit would be as compared with present family allowances and the new levels of child tax allowances for standard rate taxpayers with one, two, three and four children, respectively; and what the value of such a level of benefit would be as compared with FIS for recipients of that benefit.
§ Mr. Orme,pursuant to his reply [Official Report, 13th April 1976; Vol. 909, c. 494], circulated the following information:
The original estimate of the child benefit rate implied by a nil-cost scheme, namely £1.94 per week, still broadly stood up to the time of this year's Budget; and the gains and losses for families with one, two, three and four children respectively were given in the late Minister of State's reply to a similar Question by the hon. Member on 3rd March 1976—[Vol. 906, c. 659]—The effect of the Budget increase in child tax allowances is to add roughly 40p a week to the nil-cost rate of child benefit; it will be possible within the next few weeks to give a revised figure based on more up-to-date data. It will then also be possible to provide revised gain and loss figures for tax paying families of the quoted sizes, taking into account the change in child tax allowances. It is not possible to give a precise comparison between the value of child benefit and the value of family income supplement since the latter varies directly with earnings.