§ Mr. Lomasasked the Chancellor of the Exchequer how much of the child benefit scheme, stated to cost £95 million, will be clawed back in taxation.
§ Mr. Robert SheldonThe £95 million cost of the child benefit scheme announced on 25th May is a net Exchequer cost after allowing for increased taxation. The estimated additional benefit cost, net of savings on other social security benefits, is nearly £320 million in 1977–78. The corresponding tax and clawback on the new benefit to first children is estimated to yield an additional £225 million in that year.