HC Deb 03 August 1978 vol 955 cc706-7W
Mr. Ralph Howell

asked the Secretary of State for Social Services, further to his reply to the hon. Member for Ormskirk (Mr. Kilroy-Silk), Official Report, 15th March 1978, and to the note which he placed in the Library, if he will publish tables similar to tables 2 and 4 in that note, but showing the total net weekly gains since April 1977, at current and constant prices, and after housing benefits have been adjusted, for (a) two-parent families and (b) one-parent families, as a result of the switch to child benefits and the phased withdrawal of child tax allowances.

Mr. Deakins

, pursuant to the reply [Official Report, 24th April 1978; Vol. 948, c. 434], gave the following answer:

Two parent families paying tax at basic rate with: Net gains since March 1977 after reduction of child tax allowances and after taking account of family allowance in payment immediately before April 1977 Net gains after housing benefits have been adjusted
Family receiving both rent and rate rebates Family receiving rates rebate only
33% taper 23% taper 8% taper 6% taper
(1) (2) (3) (4) (5) (6)
One child 0.91 0.15 0.38 0.73 0.77
Two children 1.20½ 0.18½ 0.50 0.95½ 1.01½
Three children 1.49 0.20 0.59 1.18 1.26
Four children 1.78½ 0.23½ 0.70½ 1.40½ 1.50

Net gains as above in real value (i.e. cash value in April 1978 less value in March 1977 at April 1978 prices) Net gains after housing benefits have been adjusted
Family receiving both rent and rate rebates Family receiving rates rebate only
33% taper 23% taper 8% taper 6% taper
One child 0.69 -0.07 0.16 0.51 0.55
Two children 0.71 -0.16 0.03 0.47 0.53
Three children 0.71 -0.47 -0.11 0.42 0.50
Four children 0.72 -0.67 -0.25 0.38 0.47

One parent families paying tax at basic rate with: Net gains since March 1977 after reduction of child tax allowances and after taking account of family allowance/child interim benefit in payment immediately before April 1977 Net gains after housing benefits have been adjusted
Family receiving both rent and rate rebates Family receiving rates rebate only
33% taper 23% taper 8% taper 6% taper
One child 1.28½ 0.69½ 0.87½ 1.14½ 1.17½
Two children 1.58 0.72 0.98 1.37 1.42
Three children 1.86½ 0.74½ 1.08½ 1.59½ 1.66½
Four children 2.16 0.77 1.19 1.82 1.91

Net gains as above in real value (i.e. cash value in April 1978 less value in March 1977 at April 1978 prices) Net gains after housing benefits have been adjusted
Family receiving both rent and rate rebates Family receiving rate rebate only
33% taper 23% taper 8% taper 6% taper
One child 1.00 0.46 0.62 0.87 0.90
Two children 101 0.26 0'49 0.83 0.87
Three children 1.02 0.06 0.35 0.79 0.84
Four children 103 -0.14 0.21 0.75 0.82
Notes: The calculations isolate the net gains from the combined effect of the family allowances and child benefit, and the consequential changes in housing rebates and the tables therefore do not purport to show total changes in net incomes over the period.

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