§ Q20. Mr. Peter Bottomleyasked the Prime Minister if she will make a statement on the reasons for having a child benefit scheme.
§ The Prime MinisterIt has for long been the view of all parties that our tax and benefit systems should recognise the needs of families with children, and should differentiate between such families and those without responsibilities for children. Child tax allowances achieved this but gave no help to families below the tax threshold. Family allowances did not recognise the first child. Child benefit, which replaced both allowances, was introduced in 1977 with the support of all parties. I am glad that, even in the very difficult circumstances of this year, we have been able to increase child benefit by about 10½ per cent. and so honour the pledge given by my right hon. Friend the Secretary of State for Social Services on 28 July last year.