§ Mr. KirkwoodTo ask the Chancellor of the Exchequer what would be the additional cost in a full year to the Exchequer of raising both rates of child benefit by £1; and by how much the net cost to the Exchequer would be reduced if the marginal increase was taxed at 40 per cent. for(a) recipients of child benefit who are higher rate taxpayers and (b) recipients of child benefit who either live as husband or wife with a higher rate taxpayer or pay higher rate tax themselves. [71196]
§ Dawn Primarolo[holding answer 22 February 19991Estimates for the full year cost for 1999–2000 are given in the table:
£ million Cost of raising both rates of child benefit by £1 600 Yield from taxing all child benefit, including £1 increase, at 40 per cent. for (a) child benefit recipients who are higher rate taxpayers 40 (b) lone parents who are higher rate taxpayers or couples where there is a higher rate taxpayer 450 Reduction in net cost by taxing £1 increase in child benefit at 40 per cent. For (a) child benefit recipients who are higher rate taxpayers less than 5 (b) lone parents who are higher rate taxpayers or couples where there is a higher rate taxpayer 35