§ Mr. Jim Spicerasked the Chancellor of the Exchequer if he will give an estimate of how much direct revenue would be lost to the Exchequer if the parent's child allowance was increased from £115 to £300.
§ Mr. Denzil DaviesI assume the hon. Member is referring to the child allowance income limit. An amendment to the 1976 Finance Bill has raised the child allowance income limit this year from £115 to £350 in the case of children who are aged 18 or more during the year, or who are married. For younger unmarried children the limit for earned income has been raised to £350 but remains at £115 for investment income. The estimated cost of these increases is £10 million, and the cost would be slightly592W less if the limit had been raised only to £300.