HC Deb 07 December 1989 vol 163 cc340-1W
Mr. Meacher

To ask the Secretary of State for Social Security what is the value of total child care assistance, combining tax reliefs and benefits payments, for a man on average earnings with a wife and two children aged five and 11 years in each EEC country in £ sterling equivalents; and what are each of these totals as a percentage of the average earnings in that country.

Mr. Scott

Benefit rates for family benefits in each EC member state, converted into sterling using purchasing power parities to give a more accurate reflection of domestic purchasing power, are contained in the Department's "Tables of Social Benefit Systems in the European Communities" which is available in the Library.

Tax allowances for children in each EC member state are set out in the table.

It is not possible to calculate the combined effect of cash benefits and tax allowances for a family on average earnings since there are no available statistics on average annual earnings.

For a full picture one would also need to take account of the impact of social security contributions, which in most EC countries are much higher than in the United Kingdom, but again this is impossible for the family type in question without annual earnings data.

Tax allowances for children

Belgium Child allowance deducted as percentage of tax amount due. For two children 20 per cent. is deducted.

Denmark No tax deductions are given, but taxpayers with minor children are entitled to various tax-free child subsidies.

France Income divided by co-efficient applicable to family circumstances, (eg three for married persons with two children). Tax tables then applied, and resulting tax is multiplied by same co-efficient to give tax due.

Federal Republic of Germany Deduction of £623 per annum per child.

Greece Allowance for first two children £623 each.

Ireland Allowance of £472 given in respect of an invalid child under 16 years of age.

Italy Each spouse may deduct from his or her tax amount £20 for each qualifying child (ie minor child, disabled child or child under 26 years of age who is studying or learning a trade).

Luxembourg Where taxable income does not exceed £14,423, and if there are four or fewer children, relief is given by dividing income by appropriate co-efficient (eg 3.4 for two children), applying tax table and then multiplying tax due by the same co-efficient. In other cases, deductions for children are made from income tax due, according to family size and income.

Netherlands Allowance of £203 for parents of one of more children under the age of 12. If both parents "work outside the household" they may each claim this amount.

Portugal Deduction of £329 for each child up to 11 years of age, £461 for each child over 11 and up to 24 years of age.

Spain Deduction of £161 from income tax amount for each qualifying child (unmarried, under 25 and supported by taxpayer). These figures were valid on 1 January 1989 and national currency has been converted into sterling using purchasing power parities.