§ Ms CorstonTo ask the Secretary of State for Social Security what total gross and net savings in 1995–96 resulted from not uprating child benefit in line with prices since 1979. [444]
§ Mr. Andrew MitchellIf child benefit had been uprated annually in line with the retail prices index and with the normal rounding to the nearest 5p, the April 1979 rate-£4.00 per week per child-would be £10.85 from April 1995. It is estimated that the total savings in 1995–96 from paying £10.40 for the eldest qualifying child and £8.45 for each other child, instead of £ 10.85 for every child, are about £900 million. The corresponding net savings, after allowing for normal adjustments to other benefits are around £650 million.
Extra help has been made available to less well-off families since 1988 through the income-related benefits. This will be worth around £1.2 billion in 1995–96. The overall expenditure on families has increased by 121 per cent. in real terms between 1978–79 and 1995–96.