§ Mr. SteinbergTo ask the Secretary of State for Social Security if he will estimate the effect on public revenues in 1996–97 and 1997–98 of allowing families in receipt of family credit to claim a child care disregard for each dependent child. [18241]
§ Mr. Roger Evans[holding answer 29 February 1996]: The estimated cost of disregarding all child care expenses for recipients of family credit would be in the region of £40 million in the long run, with or without allowing for behavioural effects. If all such costs were disregarded, there would be a strong incentive for people who do not pay for child care at the moment to declare some payment. There are about 100,000 people on family credit who would be faced with such an incentive, which could lead to very substantial further costs.
Note:
Estimates based on date 1991–92 and 1993 family expenditure surveys, and the 1994 annual statistical enquiry, uprated to 1996–97 and 1997–98 levels adjusted using data on child care in the 199394 family resources survey.