HC Deb 20 July 1976 vol 915 cc434-5W
Mr. Ralph Howell

asked the Chancellor of the Exchequer at what level of gross earnings a family with two, with three, and with four children, respectively, loses more in tax and clawback than is received in family allowance.

Mr. Robert Sheldon

For a married couple with two children not over the age of 11 where gross earnings—excluding family allowance—exceed £11,555 the tax on the family allowance together with the effect of the clawback is greater than the after-tax value of family allowance, and it is to the taxpayer's advantage to forgo the allowance. Comparable earnings levels for a married couple with three and four children not over 11 are £11,725 and £11,895 respectively.