§ Sir Brandon Rhys Williamsasked the Chancellor of the Exchequer what is his latest estimate of the total cost of income tax reliefs specifically for lone parents, 174W one and a half average earnings, (e) twice average earnings, (f) five times average earnings and (g) 10 times average earnings the increase, in net income to be derived from (i) a 1p cut in the standard rate of income tax, (ii) an increase in personal allowance, over and above indexation, which incurred the same cost as a 1p cut in standard rate income tax and (iii) an increase in child benefit which incurred the same cost as a 1p cut in standard rate income tax in 1985–86.
§ Mr. MooreA cut of one penny in the basic rate of income tax would cost about £1,200 million in a full year at 1986–87 income levels, assuming indexation of allowances and thresholds as in the autumn statement 1985. The table below illustrates the effects of this reduction on the net income of a married man with two children. It also gives the effects of an increase in all the main personal allowances and an increase in child benefit which would have the same full year cost.
of child benefit, single person's tax allowance and married man's allowance, at current and at 1979 constant prices, in April of each year since 1979.
§ Mr. MooreThe information is in the table.
distinguishing between the additional personal allowance, maintenance payments, school fees and other reliefs; and what was the comparable figure in 1970.
§ Mr. MooreIn 1985–86, the cost of the additional personal allowance for lone parents is expected to be about £150 million. In 1975–76, the earliest year for which a comparable figure is readily available, the cost is estimated to have been about £30 million. There are no other income tax reliefs specifically for lone parents.