HC Deb 28 February 1977 vol 927 cc94-5W
Mr. Hordern

asked the Chancellor of the Exchequer if he will publish a table giving the value of children's allowance, under 11 years, 11 to 15 years, 16 years and over, personal allowance, single and married, housekeeper allowance, dependent relative allowance, blind person's allowance, dependence on daughter's service allowance, tax relief on mortgage interest payments, tax relief on life insurance payments and flat rate schedule 12 allowances, including total allowances.

Mr. Denzil Davies

The available estimates for 1976–77 are as follows:

Cost £ million
Child allowance:
under 11 years 130
age 11–15 450
age over 16 930
Single person 2,480
Married person 4,780
Housekeeper
Dependant relative 35
Blind person's
Daughter's services under¼
Tax relief on mortgage interest 1,100
Tax relief on life assurance 200

Assuming that "flat rate Schedule 12 allowances" refers to expenses allowable as deductions under Schedule E, the latest information refers to 1975–76 when the cost for all allowable expense is estimated at about £105 million. A separate figure for flat rate allowances is not available.

Mr. Ralph Howell

asked the Chancellor of the Exchequer by how much each of the main personal income tax allowances would need to be increased in April 1977 in order to maintain their April 1976 value in real terms; and what would be the estimated cost to the Exchequer of those increases.

Mr. Denzil Davies

On the basis of the increase in the retail price index between April 1976 and January 1977 the increases required would be as follows:

£
Single and wife's earning income allowances 90
Married allowance 135
Additional personal allowance 45
Age allowance, single 125
Age allowance, married 195

The estimated cost of such increases would be about £1,050 million at 1976–77 income levels.

Mr. Newton

asked the Chancellor of the Exchequer at what level the principal personal allowances would now stand if they had moved in line with the retail price index since the Budget of 1973;and what would be the cost to the Revenue of raising them to these levels in the forthcoming Budget.

Mr. Denzil Davies,

pursuant to the reply [Official Report, 14th February 1977; Vol. 926, c. 101], gave the following information:

On the basis of the increase in the retail price index between April 1973 and January 1977 the figures would be as follows:

£
Single and wife's earned income allowances 1,114
Married allowance 1,451
Age allowance:
Single 1,310
Married 1,872

The estimated cost of increasing the allowances to these amounts would be about £3,200 million at 1976–77 income levels.