§ Mr. Ralph Howellasked the Chancellor of the Exchequer what will be the effect of the proposed phasing out of child tax allowances on the amount which a dependent child may earn before the parent forfeits the whole of his tax allowance for that child; and whether he proposes to adjust the value of child's earned income allowance, in order to offset the proposed reduction in child tax allowance.
§ Mr. Robert SheldonThe child tax allowance is reduced by £1 for each £1 of the child's earnings in excess of £350. The proposed reduction of £104 or £130 in these allowances for 1977–78 will pro-318W Chief Secretary on 16th November 1976, adjustments to take account of the proposed reductions in child tax allowance.