§ Mr. BercowTo ask the Chancellor of the Exchequer if he will estimate the effect on Treasury revenues in 2001–02 of introducing an allowance against income rate of(a) £2000 and (b) £4000 for (i) all working mothers and (ii) all working mothers with at least one child under five years, giving both full and first year costs for each. [26144]
§ Dawn PrimaroloThe cost to the Exchequer of introducing the personal allowances for these groups is shown in the table:
Cost of increased personal allowances for working mothers Increase in personal allowance Working mother type Full year costs (£ million) First year costs (£ million) (a) £2,000 pa (i) All 1,200 1,050 (a) £2,000 pa (ii) With child under five 400 350 (b) £4,000 pa (i) All 2,200 1,900 (b) £4,000 pa (ii) With child under five 700 600 Note:
The estimates are calculated in 2001–02 prices, using data from the 1999–2000 Family Resources Survey held in the standard IGoTM tax benefit model. The first year costs have been estimated on a national accounts basis.