§ Mr. David ShawTo ask the Chancellor of the Exchequer what is the estimated cost to the Exchequer in a full tax year of introducing a child care tax allowance on the first(a) £1,000, (b) £2,000 and (c) £5,000 of taxable income for (i) working single parents and (ii) couples where both spouses are working.
§ Mr. MaudeEstimates are given in the table. They are based on projections from the 1988 and 1989 family expenditure surveys and are therefore provisional.
Cost (£ billion) Allowance per year of (a) £1,000 (b) £2,000 (c) £5,000 (i) Lone parents 0.1 0.1 0.3 (ii) Married couples 0.5 1.0 2.0