HC Deb 14 May 1993 vol 224 c593W
Mr. David Shaw

To ask the Secretary of State for Social Security what savings would be made by restricting child benefit to households which have total incomes of(a) 80 per cent., (b) 100 per cent., (c) 120 per cent of (i) average earnings and (ii) average household income.

Mr. Burt

If child benefit were restricted to households with less than(a) 80 per cent., (b) 100 per cent., and (c) 120 per cent. of average gross male earnings, it is estimated that benefit savings of (a) £4 billion, (b) £3.2 billion and (c) £2.4 billion would accrue.

If child benefit were restricted to households with less than (a) 80 per cent., (b) 100 per cent., and (c) 120 per cent. of average gross household income, it is estimated that benefit savings of (a) £3.9 billion, (b) £3 billion and (c) £2.2 billion would accrue.

The estimates are made at 1993–94 levels, based on 1988, 1989, and 1990 family expenditure surveys, and the 1992 new earnings survey. The estimates assume that families in receipt of income-related benefits are not compensated for any loss in child benefit.

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