HC Deb 14 July 1977 vol 935 cc220-1W
Mr. Newton

asked the Secretary of State for Social Services (1) what would be the annual gross and net costs of raising all child benefits to £4 per week and withdrawing the child tax allowances at the same time;

(2) how many children now qualify for payment of child benefit to mothers at £1 and £1.50 per week, respectively; and what would be the annual gross and net costs if all child benefits were raised to £3 per week at the same time as the child tax allowances were withdrawn.

Mr. Orme

Child benefit is currently being paid in respect of around 7 million first children at £1 per week and 6.85 million subsequent children at £1.50 per week.

The additional gross annual cost of raising all child benefit to £4 per week and £3 per week, respectively, would be of the order of £2 billion and £1.3 billion. The net additional cost, after taking into account additional revenue from withdrawal of child tax allowances and adjustments to child dependancy additions and supplementary benefit, would be around £1 billion and £0.4 billion, respectively.

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