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Child Benefit

Volume 75: debated on Monday 11 March 1985

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asked the Chancellor of the Exchequer what the effect would be, excluding those on higher rates of tax, on (a) the numbers of working families with overall marginal tax rates of 50 per cent. or more and (b) the numbers of working families with marginal tax rates of 75 per cent. or more, of (i) raising child benefit over and above indexation, whilst keeping personal allowances in line with indexation, (ii) raising personal allowances over and above indexation with child benefit being increased in line with indexation only and (iii) raising both child benefit and personal allowances by the same percentage increase, assuming in all three cases a fixed adjustment of £1·5 billion; and what would be the amounts in increases in allowances and child benefit that would occur under each of these cases.

I have been asked to reply.I refer the hon. Member to my reply to the hon. Member for Birmingham, Perry Barr (Mr. Rooker on 7 March.