HC Deb 11 July 1980 vol 988 cc345-6W
Mr. Field

asked the Secretary of State for Social Services (1) what would be the gross and net cost of raising child benefit to the level of the child's addition paid for (a) sickness and unemployment benefit and (b) the higher rates of national insurance benefit;

(2) what would be the net cost of raising child benefit to the child addition paid to the higher rate of national insurance if the benefit was made taxable.

Mrs. Chalker

The full year additional cost in Great Britain of increasing the November 1980 rate of child benefit—£4.75—by the amount of:

a. the November 1980 short-term child depenency rate would be gross £850 million
net £690 million
b. the November 1980 long-term child dependency rate would be gross £5,100 million
net £4,350 million

If child benefit were increased by the long-term child dependency rate and the whole of the benefit were made taxable, the full year tax yield in Great Britain, based on 1980–81 income levels, would be of the order of £2,400 million reducing the net cost of the increase from about £4,350 million to about £1,950 million a year.