§ Mr. Squireasked the Secretary of State for Social Services what increase in child benefit would be required to permit the abolition of family income supplement without loss of income to those currently in receipt of family income supplement; and what would be the cost of such an increase.
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§ Mr. NewtonIn assessing family income supplement (FIS), child benefit is not taken into account and that benefit would have to be increased by the FIS maximum levels, £22 for a first child and £2 for each additional child, if FIS were to be abolished and no family currently receiving FIS were to lose. It is estimated that the gross cost of such an increase would be about £8½ billion. There would be offsetting savings but it has not been possible, in the time available, to calculate these. I will write to my hon. Friend with the details as soon as possible.
§ Mr. Squireasked the Secretary of State for Social Services what would be the likely effect on the numbers (a) eligible for and (b) in receipt of family income supplement if child benefit were raised to the level of total child support provided for long-term national insurance beneficiaries and if the family income supplement qualifying limits were adjusted downwards to take account of this increase.
§ Mr. NewtonIt is estimated that the number of families receiving family income supplement (FIS) would be reduced by about 124,000 if child benefit were to be raised to this level and if the FIS prescribed Levels were adjusted downwards to take account of this increase. I regret that it is not possible to provide an estimate for those families eligible for FIS but not receiving it.