§ Mrs. Chalkerasked the Chancellor of the Exchequer (1) by how much child tax allowances will need to be reduced to provide tax-free child benefits as from April 1977 as outlined by the Department of Health and Social Security on 23rd September 1976, assuming that no extra cost to Government finances is incurred;
(2) whether he proposes to reduce child tax allowances on a uniform basis as 520W from April 1977 to finance tax-free child benefits or whether child tax allowances for first children will be reduced by an amount different from that for second and subsequent children.
§ Mr. Joel BarnettIt is proposed that child tax allowances for 1977–78 should be reduced by the value of the tax and clawback which would under the Government's earlier proposals have been levied on child benefit. The level of child benefit, which will not be subject to tax and clawback, will be, as earlier proposed, £1 per week for the first child and £1.50 for others. On this basis, which would involve no extra expenditure, child tax allowances would be reduced below their current level by £104 for first children and £130 for second and subsequent children.