§ Mr. Fieldasked the Chancellor of the Exchequer if he will estimate the cost of raising the tax threshold to (a) the supplementary benefit level and (b) the family income supplement eligibility level.
§ Mr. Ridley[pursuant to his reply, 23 October 1981]: It would cost about £2,500 million in a full year at 1981–82 income levels to raise tax thresholds for single people and married men to the current level of supplementary benefit plus average housing costs, assuming that the tax thresholds varied according to the numbers of dependants. In these calculations no adjustment has been made to the wife's earned income allowance.
Only families with children have been considered in this case, as only these are eligible for family income supplement. The cost in a full year at 1981–82 income levels of raising tax thresholds to family income supplement eligibility levels assuming the tax thresholds varied according to the number of dependants would be about £3,100 million.