§ Dr. McDonaldasked the Chancellor of the Exchequer what would be the saving if (a) child benefit was made taxable for higher rate taxpayers and (b) child benefit was not paid to higher rate taxpayers.
§ Mr. Peter ReesThe yield from taxing child benefit paid to families of higher rate taxpayers would be about £45 million at 1979–80 income levels. The cost of child benefit paid to families of higher rate taxpayers is about £110 million in 1979–80.
§ Miss Richardsonasked the Chancellor of the Exchequer if he will publish a table which expresses the combined value of child tax allowances and family allowances or child benefit as a proportion of average gross male earnings for each year since 1945.
§ Mr. Peter ReesThe figures are as follows:
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VALUE OF THE CHILD TAX ALLOWANCE AND FAMILY ALLOWANCE/CHILD BENEFIT FOR A MARRIED MAN ON AVERAGE EARNINGS AS A PERCENTAGE OF GROSS EARNINGS OF MANUAL WORKERS One child Two children Four children Under 11 years Between 11–16 years Over 16 years Under 11 years Between 11–16 years Over 16 years Two under 11 years, two 11–16 years 1945–46 … … … … … 5.1 5.1 5.1 10.2 10.2 10.2 14.7 1950–51 … … … … … 3.9 3.9 3.9 9.3 9.3 9.3 16.5 1955–56 … … … … … 4.1 4.1 4.1 10.2 10.2 10.2 17.8 1960–61 … … … … … 4.1 5.2 5.9 9.6 11.0 12.3 19.8 1963–64 … … … … … 4.3 5.1 6.0 10.1 11.5 12.7 19.1 1964–65 … … … … … 4.5 5.3 6.1 9.8 11.4 12.8 19.9 1968–69 … … … … … 4.0 4.8 5.7 9.1 10.9 12.6 21.7 1969–70 … … … … … 3.7 4.5 5.3 8.5 10.1 11.6 20.2 1970–71 … … … … … 3.2 4.0 4.7 7.5 8.9 10.3 17.9 1971–72 … … … … … 3.7 4.3 4.9 8.5 9.6 10.8 19.5 1972–73 … … … … … 3.2 3.8 4.3 7.4 8.5 9.5 17.2 1973–74 … … … … … 2.8 3.3 3.7 6.3 7.3 8.2 14.7 1974–75 … … … … … 3.1 3.5 3.9 6.7 7.6 8.3 15.1 1975–76 … … … … … 2.7 3.1 3.4 6.4 7.2 7.8 14.6 1976–77 … … … … … 3.0 3.3 3.6 6.8 7.5 8.1 15.3 1977–78 … … … … … 3.0 3.3 3.6 6.4 7.0 7.6 13.9 1978–79 … … … … … 3.7 3.9 4.2 7.5 8.0 8.3 15.3 1979–80 … … … … … 4.0 4.0 4.0 8.1 8.1 8.1 16.1 I regret that figures for every year could be provided only at disproportionate cost. Earnings are earnings of full-time male manual workers in October of each year to 1969–70; for 1970–71 to 1978–79 they are the average of the earnings of full-time male manual workers in the April new earnings survey at the beginning and end of each year.
The assumed level of average earnings for 1979–80 has been obtained by updating to September 1979 the new earnings survey estimate of average earnings of full-time male manual workers in April, taking account of movements in a centred three-month moving average of the whole-economy index of average earnings of all employees.
The figures take account where appropriate of the family allowance deduction—clawback—and earned income relief.