HC Deb 12 July 1976 vol 915 cc61-2W
Miss Jo Richardson

asked the Secretary of State for Social Services what would be the net cost of a child benefit of £2.45 with a supplement of: (a) 20p, (b) 25p, (c) 30p, (d) 40p and (e) 50p, respectively, for one-parent families with four or more children, assuming the tax allowance for children under 11 years is withdrawn.

Mr. Ennals

The net annual cost of a child benefit of £2.45 a week, assuming withdrawal of the £300 child tax allowance for children under 11 and of the first £300 of the child tax allowance for older children, would be nearly £70 million. Each 5p of supplement in respect of each fourth or subsequent child of one-parent families would add an estimated £15,500 to the net cost.

Miss Jo Richardson

asked the Secretary of State for Social Services (1) what would be the net cost of introducing a child benefit of £2.50 with a special supplement of 10p for families with five or more children and: (a) 15p, (b) 20p, (c) 30p, (d) 40p and (e) 50p, respectively, for one-parent families, assuming the child allowance for children under 11 years is withdrawn;

(2) what would be the net cost of introducing a child benefit of £2.50 with a special supplement of: (a) 15p, (b) 20p, (c) 30p, (d) 40p and (e) 50p, respectively, for one-parent families and for families with five or more children, assuming the child tax allowance for children under 11 years is withdrawn; and how much of these costs are attributable to the supplements for one-parent families and how much to those for large families.

Mr. Ennals

The net annual cost of a child benefit of £2.50 a week, assuming withdrawal of the £300 child tax allowance for children under 11 and the first £300 of the child tax allowance for older children, would be about £95 million. Each 5p of special supplement for the fifth and each subsequent child in a family would add an estimated £465,000 to the net cost; and each 5p for each other child in a one-parent family would cost a further £1.1 million net.

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