§ Mr. MeacherTo ask the Secretary of State for Social Security (1) what would be(a) the first year and (b) the full-year costs of raising child benefit to £9.95 (i) in 1991–92 and (ii) 1992–93, including increases in linked, means-tested and national insurance benefits for Great Britain;
(2) what would be (a) the first year and (b) the full-year costs of raising child benefit to £10 (i) in 1991–92 and (ii) 1992–93, including increases in linked, means-tested and national insurance benefits for Great Britain.
§ Mr. JackThe rates of child benefit from April 1991 were £8.25 for the eldest eligible child and £7.25 for each other child, and the rates increased to £9.25—£7.50 from October. On the basis of our latest estimates, the gross cost of increasing child benefit from those rates to £9.95 for each child throughout 1991–92 would be about £1,150 million. If the October rates had applied throughout 1991–92, the cost would reduce to around £940 million. The gross full-year cost in 1992–93 of paying £9.95 instead of the rates of £9.65—£7.80 which will be in payment from April 1992, would be about £720 million.
Raising child benefit on the same basis to £10 instead of £9.95 would increase the above costs by some £30 million to around £1,180 million, £970 million and £750 million respectively.