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Child Endowment

Volume 884: debated on Wednesday 22 January 1975

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asked the Chancellor of the Exchequer what would be the cost of introducing a tax-free child endowment—to replace family allowances and child tax allowances—for all children, including the first, at a rate for each child of 6 per cent. of average industrial earnings of male manual workers.

The net cost of the scheme specified, at 1974–75 incomes and tax rates, would be about £850 million. This assumes a child endowment of £3·10 per week based on estimated average industrial earnings of male manual workers in November 1974 and takes no account of the increase in family allowance due to take effect in April 1975.