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Child Benefit

Volume 976: debated on Friday 21 December 1979

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asked the Chancellor of the Exchequer if he will adopt the practice of treating an increase in child benefit in the same way as a reduction in direct taxation rather than as an increase in public expenditure for accounting purposes; and if not, if he will make a statement of his reasons for preserving the existing system.

No. Child benefit is a cash transfer from the public to the private sector which is voted by Parliament as public expenditure and is so treated in national accounting.