§ 17. Mr. LawrenceTo ask the Secretary of State for Social Security what proportion of British families have only one child; and how much such families receive in child benefit per week.
§ Mr. JackOver 40 per cent. of families have only one child eligible for child benefit. They currently receive £9.25 a week which will increase to £9.65 from next April, that is, equivalent to £500 a year tax free. For families paying standard rate tax and national insurance contributions this would be equivalent to additional gross earnings of £750.
§ Mr. Nicholas BrownTo ask the Secretary of State for Social Security what would be(a) the first year and (b) the full year costs of raising child benefit to £9.55 (i) for 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 these rates increased to £9.25 and £7.50 from October. On the basis of our latest estimates, the gross cost of increasing child benefit from those rates to £9.55 for each child throughout 1991–92 would be about £895 million. If the October rates had applied throughout 1991–92, the cost would reduce to around £685 million. The gross full-year cost in 1992–93 of paying £9.55 for all children instead of the rates of £9.65 and £7.80 which will be in payment from April 1992, would be about £465 million.
§ 25. Mr. Cyril D. TownsendTo ask the Secretary of State for Social Security if he will make a statement on the future of child benefit.
§ Mr. JackChild benefit is, and will remain, a strong element in our policies for family support. We are committed to index-link child benefit for future years.