Benefits and Allowances

HC Deb 14 November 1988 vol 140 cc458-9W

Mr. Austin Mitchell

To ask the Secretary of State for Social Security what is his estimate of the saving in other forms of direct and indirect state benefits and allowances as a result of an increase in child benefit to(a) £10, (b) £15 and (c) £20 by adding the benefit to income for tax purposes.

Mr. Peter Lloyd

Precise costs and savings would depend on the assumptions made for the calculation of social security benefits other than child benefit. In broad terms, the orders of magnitude might be as follows:

£ billion 1988—89 levels
	Child benefit increased to
	(a) £10 per week	(b) £15 per week	(c) £20 per week
Child benefit cost	1.7	4.8	8.0
Saving in income-related benefits and child dependency increases	0.4	1.0	1.7
Increase in income tax revenue	1.4	2.1	1.7
Net Cost	nil	1.7	3.5