HC Deb 22 February 1983 vol 37 cc417-8W
Mr. Austin Mitchell

asked the Secretary of State for Social Services whether he will publish in the Official Report the types of benefit, including unemployment benefit, paid in respect of children which would be reduced if child benefit were to be increased together with his estimate of the saving which might be expected in 1983–84 if the child benefit were to be increased to £15.

Mr. Newton

Section 17(1) of the Child Benefits Act 1975 allows the Secretary of State to reduce the rates of child dependency addition paid with certain benefits to such an extent as he considers appropriate having regard to an increase in the rate of child benefit. The benefits in question are retirement pension, widows benefit, unemployment benefit, sickness benefit, invalidity benefit, industrial disablement benefit, maternity allowance, invalid care allowance and non-contributory invalidity pension. If all of these child dependency additions were abolished, the saving in 1983–84 would be some £200 million.

An increase in child benefit would not reduce the rates of supplementary benefit but would be taken into account as a resource for those receiving benefit. The overall saving if child benefit was increased to £15 would be some £750 million in 1983–84.

There would also be savings on housing benefit, though I regret the cost of estimating these would be disproportionate. Family income supplement would be affected only if the "prescribed amounts" were subsequently changed to reflect the child benefit increase.

The gross cost of raising child benefit to £15 would be approximately £6 billion.