HC Deb 27 January 1977 vol 924 cc721-2W
Mr. Ralph Howell

asked the Secretary of State for Social Services (1) what would be the gross annual cost and the net annual cost, assuming replacement of all benefits and allowances with an element for child support as quoted in the reply to the right hon. Member for Wanstead and Woodford (Mr. Jenkin) on 15th November 1976, column 398, and of child tax allowances, of paying child benefit at £7 per week to all dependent children;

(2) what would be the gross annual cost and the net annual cost, assuming replacement of all the benefits and allowances with an element of child support as quoted in the reply to the right hon. Member for Wanstead and Woodford on 15th November 1976, column 398, and of child tax allowances, of paying child benefit at £7 per week for all second and successive children, and for the first children of lone parents and of families in receipt of national insurance and supplementary benefits, and at £2 per week for the first children of all other parents.

Mr. Orme

As my reply to the hon. Member on 29th June—[Vol. 914, c.128]—indicated, the withdrawal of child tax allowances, and the withdrawal—net of tax—of benefits relating to children, would save about £2.2 billion. Paying £7 a week, tax free, to all dependent children would cost about,£5.1 billion a year, and paying £7–£2 a week, tax free, to dependent children, as the hon. Member stipulates, would cost £3.5 billion a year. The net annual costs would thus be £2.9 billion and £1.3 billion respectively.