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Widowed Mothers

Volume 939: debated on Friday 18 November 1977

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asked the Chancellor of the Exchequer what is the net gain for a widow with one, two, three and four children, respectively, subject to the standard rate of income tax resulting from the proposed child benefit increases in April 1978 and the corresponding changes in taxation of dependency allowances which he announced on 26th October; and how this compares with the net gain for a married couple with one child also paying the standard rate of tax.

inner cities, will fall in 1978–79. Two new cash blocks have been created for the expenditure on inner cities in England and Wales; the corresponding expenditure in Scotland is being included within existing cash blocks. The resulting changes to cash limits are as follows:

1977; Vol. 938, c. 189–90], gave the following information:

The net gain per week resulting from the increase in child benefit and reduction of child tax allowance in 1978–79 compared with 1977–78 for a married couple with one child paying tax at the basic rate will be 67p a week. In order to ensure that widows who are liable to tax, and who are in receipt of taxable child dependency allowances-which are reduced to take account of child benefit—are not worse off in April 1978 as a result of the further reduction in child tax allowances, it is proposed, as announced on 26th October, to exempt in 1978–79 £80 of the dependency allowance. This will leave widows with one or more children neither better nor worse off in April 1978 as a result of the proposed changes.