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Family Allowances

Volume 893: debated on Monday 16 June 1975

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asked the Secretary of State for Social Services, in the case of a family in which three children all under 19 years of age are each in training as apprentices, on what basis family allowance is calculated.

Assuming that all three children were apprentices as defined under the Family Allowances Act 1965 and the Family Allowances (Qualifications) Regulations 1969 they would count in the family for family allowances purposes and payment would accordingly be made at the rate of £3 per week.

asked the Secretary of State for Social Services what the net cost would be, taking into account savings on supplementary benefit, FIS and other benefits, of paying from November a non-means-tested, non-contributory benefit to all single parents excluding widows of £16·70 plus increases for children at the rate of £4·35 for a child under 11 years, £5·35 for a child aged 11 to 15 years, £6·35 for a child aged 11–17 years and £7·35 for a child aged 18 years; and what the effect would be on the net cost if the benefit were made taxable.

The gross cost of my hon. Friend's proposal would be £680 million a year. There would be offsetting savings of £260 million in supplementary benefit and £5 million in family income supplement. Other savings, including those from making the benefit taxable, could not be calculated without more detailed information and disproportionate effort.