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Child Benefit

Volume 136: debated on Monday 27 June 1988

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To ask the Secretary of State for Social Services if he will estimate the cost of raising child benefit in April 1989 in line with the projection of the retail prices index between September 1987 and September 1988.

Increases in the rate of child benefit are not statutorily linked to movements in the index of retail prices and, even for those benefits which are, the calculations are made on an "historical" and not a "projected" basis. Based on the assumptions in Cm. 288 (chapter 15, paragraph 37 and table 15.20) published in January 1988, the annual net cost of uprating child benefit by the projected increase in the retail prices index between September 1987 and September 1988 would be about £160 million.