Child Benefit (Hansard, 1 May 1991)

§ Mr. Allen
To ask the Secretary of State for Social Security how much it would cost in total for a full year to restore child benefit for(a) the first child, (b) the second child and (c) all children to its value (i) in 1979 and (ii) in 1987.

§ Mr. Jack
On the basis of the latest estimates, the gross additional costs in 1991–92 of paying child benefit at its April 1979 value in real terms—£9.90 a week—would be(a) £585 million, (b) £540 million and (c) £1,345 million. The corresponding net costs after adjustments to national insurance and income-related benefits are (a) £415 million, (b) £395 million and (c) £950 million.
The gross additional costs of making payment at the April 1987 real-terms value (£9.55) would be (a) £460 million, (b) £470 million and (c) £1,120 million. The corresponding net costs are (a) £325 million, (b) £345 million and (c)£790 million.
These costs do not take account of the increases in child benefit from next October, at a cost of around £210 million in 1991–92, which my right hon. Friend the Chancellor of the Exchequer announced in his Budget statement.
249W

§ Mr. Battle
To ask the Secretary of State for Social Security if he will estimate the full-year cost of raising child benefit in October to £9.55 a week for all children, assuming a corresponding increase in income-related benefit allowances for children.

§ Mr. Jack
I refer the hon. Member to the reply given to the hon. Member for Nottingham, North (Mr. Allen) on 30 April 1991.

§ Mr. Nigel Griffiths
To ask the Secretary of State for Social Security what has been the total cost of child benefit in each year since 1979 in cash and real terms; and what that figure would be if it had been uprated in line with inflation.

§ Mr. Jack
The costs are contained in the table:

Year Cash value Equivalent value at 1990–91 prices Notional Expenditure¹

(£ million) (£ million) (£ million)

1979–80 2,787 6,026

1980–81 2,944 5,379 3,000

1981–82 3,372 5,619 3,700

1982–83 3,660 5,694 3,900

1983–84 3,988 5,930 4,100

1984–85 4,276 6,051 4,200

1985–86 4,468 5,997 4,400

1986–87 4,513 5,854 4,600

1987–88 4,598 5,663 4,800

1988–89 4,515 5,175 4,900

1989–90 4,537 4,889 5,300

1990–91 4,636 4,636 5,900

1991–92 25,286 4,940 ³—

¹ Notional expenditure represents estimated expenditure in the financial year, had benefit levels at the appropriate uprating dates reflected the movement in the RPI from April 1979 up to those dates.

² Estimated costs including October 1991 increases.

³ Relevant RPI figure not yet available.

Year	Cash value	Equivalent value at 1990–91 prices	Notional Expenditure¹
	(£ million)	(£ million)	(£ million)
1979–80	2,787	6,026
1980–81	2,944	5,379	3,000
1981–82	3,372	5,619	3,700
1982–83	3,660	5,694	3,900
1983–84	3,988	5,930	4,100
1984–85	4,276	6,051	4,200
1985–86	4,468	5,997	4,400
1986–87	4,513	5,854	4,600
1987–88	4,598	5,663	4,800
1988–89	4,515	5,175	4,900
1989–90	4,537	4,889	5,300
1990–91	4,636	4,636	5,900
1991–92	25,286	4,940	³—
¹ Notional expenditure represents estimated expenditure in the financial year, had benefit levels at the appropriate uprating dates reflected the movement in the RPI from April 1979 up to those dates.
² Estimated costs including October 1991 increases.
³ Relevant RPI figure not yet available.